Shophouse Transactions Lower 3Q2024 Uncaveated Deals Show Demand Huttons Asia
The volume and value of shophouse transactions have declined in 3Q2024, but demand for these properties remains strong, according to Huttons Asia’s quarterly report. There were 18 caveated shophouse deals in 3Q2024, down from 21 in the previous quarter. The total transacted quantum of these caveated deals was $138.9 million, a decline of 28.8% from the previous quarter. On a year-on-year basis, this is also a sharp drop from 3Q2023’s transacted quantum of $278.6 million.In the first nine months of 2024, caveats show a total of 62 shophouses sold. This represents a 46.1% decrease from the same period last year. The total value of these transactions for the first three quarters of 2024 is $519 million, down 48.5% from the same period in 2023.Despite these declines, Huttons’ report highlights that a number of shophouse deals in 3Q2024 were not caveated. Lee Sze Teck, senior director of data analytics at Huttons Asia, notes that market sources have reported several shophouses in Districts 1 and 2 being sold, including those on Amoy Street, Neil Road, and Telok Ayer Street. These transactions have a combined estimated quantum of over $70 million, indicating a strong demand for shophouses.The rise in interest for shophouse properties can be attributed to their scarcity and potential for strong capital gains, says Lee. As interest rates have been slashed in the last few months, shophouses have become increasingly popular as a means of wealth creation and preservation. Lee believes that the volume and value of shophouse transactions may see an uptick in 4Q2024.
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