Key Insights
The shophouse market remained relatively subdued in Q2 2025, as buyers and sellers continued to grapple with differing price expectations. Global headwinds, including new US trade tariffs and geopolitical tensions in the Middle East, dampened sentiment, though Singapore’s economy showed resilience with a 1.4% QoQ expansion. Despite softer activity, several high-value transactions and resilient leasing demand underscored the enduring appeal of shophouses as a defensive investment asset.
- 18 shophouse transactions in Q2 2025, down 10% from Q1, but sales value rose 6.6% QoQ to $127 million.
- District 8 (Little India, Jalan Besar) led sales with $53.1 million across seven deals.
- Big-ticket transactions included boutique hotels such as 21 Carpenter (~$100m) and Duxton Reserve (~$80m).
- Leasing demand: 800 rental contracts worth $8.9 million, down 4.9% QoQ. Median rentals rose to $6.68 psf/month, up 3.1% QoQ.
- Outlook: Despite uncertainties, shophouses remain attractive due to scarcity, heritage value, and exemption from ABSD and SSD.
While transaction volumes in Q2 2025 reflected caution, shophouses continued to demonstrate their resilience with steady values and rising rents. Big-ticket deals and strong leasing demand highlight the enduring appeal of this limited-supply asset class. For investors seeking long-term value and defensiveness in uncertain times, shophouses remain a compelling option. Download the full report for in-depth data, top transactions, and PropNex’s expert outlook on the sector.
