The Singapore REIT market provided a number of key transactions in 2025, ranging from the IPOs of NTT DC REIT and Centurion Accommodation REIT to the delisting of Frasers Hospitality Trust.

Overall, most REITs’ share prices ended the year on a positive note, with the exception of small and mid-cap REITs that underperformed due to headwinds facing their business.

In this article, we go through each of the REIT sectors: office, industrial, retail, hospitality / lodging, healthcare, data centres, and diversified, and summarize key transactions that happened in 2025, especially the latter part of the year.

Firstly, to set the context, according to REITAS, there are 5 REIT ETFs traded on the Singapore stock exchange.

• Lion-Philip S-REIT ETF (CLR)
• Amova-Straits Trading Asia ex Japan REIT Index (CFA)
• Philip SGX APAC Dividend Leaders REIT ETF (BYI)
• CSOP iEdge S-REIT Leaders ETF (SRT)
• UOB Asia Pacific Green REIT ETF (GRN)

All the ETFs have provided positive returns of between 13%-23% for the year, and as we will see below, this is reflected in most of the individual REIT performance.

Office REITs

Some notable developments among the office REITs include the following

Keppel REIT

• Acquisition of 75% interest in Top Ryde City Shopping Centre in Dec 2025 for A$393.8m or approximately S$334.8m. The acquisition of the regional mall in Sydney represents Keppel REIT’s strategic expansion into the retail asset class. The acquisition is expected to be DPU-accretive and will enhance Keppe REIT’s overall returns, while strategically complementing its Singapore office-focused portfolio.
• Acquisition of one-third interest in Marina Bay Financial Centre Tower 3 in Dec 2025 at an agreed property value of S$1,453m or approximately S$3,268 pft. This agreed property value is approximately 1.0% below the property’s independent valuation. Post-completion, Keppel REIT will hold in aggregate two-third interest in MBFC Tower 3. The remaining one-third will be held by DBS Bank, which is also the tower’s anchor tenant.

Elite UK REIT

• Elite UK REIT acquired three government-leased properties in June 2025. The total acquisition amounted to GBP 9.2 million, and the seller was Elite Phoenix Limited, a wholly-owned subsidiary of Elite UK Commercial Fund III. According to official press releases, the properties provide a gross rental income yield of 9.2%, and are expected to be 0.6% DPU accretive to Elite UK REIT.
• The REIT also divested Crown Buildings, Caerphilly at GBP 710,000, an 18% premium to valuation in Mar 2025.

Manulife US REIT

Manulife US REIT continues to underperform, returning a negative 22% for the whole year. Some notable developments for Manulife US REIT in the Oct to Dec 2025 period included

• An EGM to vote on the acquisition and disposition mandates pursuant to the Growth and Value Up plan. Both were passed with 83.1% voting for the disposition plan and 83% voting for the acquisition plan. The plans provide for a broadened investment mandate to invest in income-producing real-estate in the US and Canada, with a focus on industrial, living sector and retail assets. It also allows for the revitalization of the portfolio through the sale of up to three office assets with proceeds used to acquire new assets, repay debt and fund capital expenditures, tenant incentives and leasing costs. The objective is to lower Manulife US REIT’s aggregate leverage.

According to REITAS, office REITs comprise the following

• Keppel (K71U)
• Prime US (OXMU)
• Keppel Pacific Oak US (CMOU)
• Manulife US (BTOU)
• Elite UK (MXNU)

Throughout 2025, all the office REITs, with the exception of Manulife US REIT, provided positive returns of 18%-36%. Manulife US REIT declined approximately 22%.

Industrial REITs

Some notable developments among the industrial REITs include the following

CapitaLand Ascendas

• Acquisition of 3 properties in Singapore – 2 Pioneer Sector 1, Tuas Connection and 9 Kallang Sector in Dec 2025
• Acquisition of 5 Science Park Drive for S$137.1m and 9 Tai Seng Drive (expected S$275.5m)
• Divestment of Astmoor Road in the UK in Nov 202 and 95 Gilmore Road in Australia in Dec 2025
• Acquisition of two freehold plots of land in the East Midlands, UK, in Aug 2025

ESR REIT

• Divestment of a portfolio of 8 industrial properties in Singapore for an aggregate sale consideration of S$338.1m in Dec 2025. The properties are located mainly in the western part of Singapore, around the Pioneer, Jurong Port, and Tuas areas. The rationale of the divestment is to minimize the impact of land lease decay and reduce the decline in NAV of the REIT, while balancing the needs of stable, growing distributions and having a future-ready asset portfolio that delivers sustainable returns to unitholders.

Mapletree Industrial Trust

• Divestment of three industrial properties in Singapore, namely 2 International Business Park, The Synergy, and Marsiling Industrial Estate, for a total sale consideration of S$535.3m. The divestment rationale is part of the REIT manager’s strategy to deliver sustainable returns by reviewing the portfolio’s composition and to redeploy capital towards potential investment opportunities.

According to REITAS, industrial REITs comprise the following

• CapitaLand Ascendas (A17U)
• Mapletree Logistics (M44U)
• Mapletree Industrial (ME8U)
• ESR (9A4U)
• AIMS APAC (O5RU)
• Alpha Integrated (M1GU)
• Daiwa House Logistics (DHLU)

Throughout 2025, all the industrial REITs except Mapletree Industrial Trust provided positive returns of 5%-45%. Mapletree Industrial Trust slightly underperformed with a decline of 1%.

Retail REITs

Some notable developments among the retail REITs include the following

Frasers Centrepoint Trust

• Acquisition of Northpoint City South Wing for S$1.17b in Mar 2025. Following the acquisition, Frasers Centrepoint Trust owns 100% of Northpoint City’s North Wing and South Wing, giving it the opportunity to unlock value through AEIs, tenant mix strategies, and enhancing operations. Frasers Centrepoint Trust’s market share of suburban shopping centre by net lettable area also increased to 10.3% from 9.1%, strengthening its leadership position.

United Hampshire US REIT

• Acquisition of Dover Marketplace for US$16.375m in Aug 2025. Dover Marketplace is a retail neighbourhood shopping centre in Dover Township, York County, Pennsylvania, anchored by the GIANT Company, which is owned by Ahold Delhaize, a leading supermarket operator in the Mid-Atlantic region of the US. The acquisition is expected to be accretive to United Hampshire US REIT’s DPU by 2.0% (together with the Albany divestment).

According to REITAS, retail REITs comprise the following

• Frasers Centrepoint (J69U)
• Starhill Global (P40U)
• Sasseur (CRPU)
• Lippo Malls Indonesia (D5IU)
• United Hampshire US (ODBU)
• BHG Retail (BMGU)

Throughout 2025, all the retail REITs, with the exception of Lippo Malls Indonesia and BHG Retail REIT, provided positive returns of 9%-25%.

Hospitality / lodging REITs

Some notable developments among the hospitality / lodging REITs include the following

Centurion Accommodation REIT

• The highlight among hospitality / lodging REITs is the IPO of Centurion Accommodation REIT in Sep 2025. The REIT listed with 14 properties initially, before it will expand to 15 with EPIISOD Macquarie Park. The initial portfolio size will be S$1.84b, before expanding to S$2.12b. The IPO offer price was at S$0.88 per unit, and as at the time of this article, it has risen to S$1.15. The gearing ratio was 20.9% at IPO, before it is expected to rise to 31% post the EPIISO acquisition. Dividend yield is forecasted to be between 7-8% in FY2026 and FY2027.

CapitaLand Ascott REIT

• Divestment of Citadines Central Shinjuku Tokyo in Jul 2025 for JPY25b or approximately S$222.7m. The property has 206 rooms with a gross floor area of approximately 8,085 sqm and was built in 2008. It has a freehold tenure.
• Acquisition of three rental housing properties in Japan for JPY4b in Aug 2025. Two of the rental housing properties are in Osaka while the third is in Kyoto. The acquisition is expected to be accretive to DPU by 0.3%, and is in line with CapitaLand Ascott REIT’s strategy to focus on Japan, which has strong living sector fundamentals.

Frasers Hospitality Trust

• Another significant transaction in 2025 was the delisting of Frasers Hospitality Trust in Sep 2025 at an offer price of S$0.71 per stapled security. The rationale for the divestment was the trust’s struggle to boost distributions and growth amid economic headwinds and FX challenges. The REIT previously had a portfolio value of approximately S$2b.

According to REITAS, hospitality / lodging REITs comprise the following

• CapitaLand Ascott (HMN)
• CDL Hospitality (J85)
• Far East Hospitality (Q5T)
• Centurion Accommodation (8C8U)
• Acrophyte Hospitality (XZL)

Throuughout 2025, all the hospitality REITs provided positive returns of 2%-39%.

Healthcare and data centre REITs

Some notable developments among the healthcare and data centre REITs include the following

NTT DC REIT

• A significant transaction in 2025 was the listing of NTT DC REIT in Jul 2025. The IPO portfolio comprised 6 institutional-quality data centres valued at US$1.6b, located in the US, Austria and Singapore, with a 94.3% occupancy rate. The forecasted annualized distribution yields are between 7.5%-7.8% based on the offer price of US$1.00 per unit. Cornerstone investors includes Singapore’s own sovereign wealth fund, GIC, who have subscribed for an aggregate of 172.8 million units, which represents 16.8% of the units in issue after offering.

According to REITAS, healthcare REITs comprise the following

• Parkway Life (C2PU)
• First REIT (AW9U)

According to REITAS, data centre REITs comprise the following

• Keppel DC (AJBU)
• NTT DC (NTDU)
• Digital Core (DCRU)

Throughout 2025, all healthcare REITs and one data centre REIT (Keppel DC REIT) delivered positive returns of 5%-22%. The two data centre REITs that underperformed was Digital Core REIT and NTT DC REIT.

Diversified REITs

Some notable developments among the diversified REITs include the following

CapitaLand Integrated Commercial Trust

• CapitaLand Integrated Commercial Trust’s acquisition of the remaining 55% interest in CapitaSpring in Aug 2025 based on an agreed property value of S$1.9b. The acquisition is expected to deliver DPU accretion of 1.1% and strengthen CICT’s leadership position in Singapore’s commercial real estate market.

Frasers Logistics & Commercial Trust

• Frasers Logistics & Commercial Trust’s divestment of 357 Collins Street in Melbourne in Sep 2025 for A$192.1m. This comes on the back of market conditions remaining challenging in the Melbourne CBD office sector. According to the REIT manager’s CEO Anthea Lee, the divestment is a strategic step in their ongoing portfolio reconstitution, which will allow the REIT to extract value from a commercial proeprty and re-weight the portfolio towards logistics & industrial properties.

Lendlease Global Commercial REIT

• Lendlease Global Commercial REIT’s acquisition of a 70% interest in PLQ mall which completed in Nov 2025. The agreed property value was S$885m, and Lendlease REIT financed the acquisition through a private placement of approximately S$280m. Among other reasons, a key acquisition rationale was to strengthen the portfolio’s diversity and income stability, with exposure to essential services rising from 57.7% to 59.9%, and to expand the REIT’s exposure in Singapore.
• Lendlease Global Commercial REIT’s divestment of the office component of Jem in Aug 2025. The sale was completed at a consideration of S$462m, and the key reasons for the divestment was to improve the REIT’s financial position, enhance financial flexibility to support portfolio growth and to realise the value of Jem office, among other reasons.

According to REITAS, diversified REITs comprise the following

• CapitaLand Integrated Commercial (C38U)
• Mapletree Pan Asia (N2IU)
• Suntec REIT (T82U)
• Frasers Logistics & Commercial (BUOU)
• OUE REIT (TS0U)
• CapitaLand China (AU8U)
• Lendlease Global Commercial (JYEU)
• CapitaLand India (CY6U)
• Stoneweg European (SET)
• IREIT Global (8U7U)

Throughout 2025, all of the diversified REITs provided positive returns (including dividends) of 8%-33%, with the exception of IREIT Global, which announced in Jul 2025 that its wholly-owned subsidiaries were served with payment orders by the former main tenant at Berlin Campus. IREIT Global declined approximately 4% throughout the year.

In the month of December, resale transaction activity of condominiums slowed compared to the previous few months, consistent with the trend in past years, as most people head overseas for holidays or back to their home countries.

A total of 763 resale condominiums were transacted, lower than 864 the previous month.

Throughout the whole year, the peak periods of when transactions were completed were two periods of around Mar and Apr, and Sep.

During these 3 months, an average of 1,200 resale condominiums were transacted.

Resale prices per sqft generally dropped slightly across all regions between Nov and Dec

• CCR: S$2,173 psf, lower than S$2,266 in Nov
• RCR: S$1,928, lower than S$1,955 in Nov
• OCR: S$1,550, lower than S$1,560 in Nov

Despite the drop in resale psf prices between Nov and Dec, throughout the whole year, however, there was some slight divergence in per sqft prices across regions.

• CCR: S$2,173, lower than S$2,226 in Jan (2.4% decrease)
• RCR: S$1,928, higher than S$1,873 in Jan (2.9% increase)
• OCR: S$1,550, higher than S$1,496 in Jan (3.6% increase)

Absolute prices of units transacted rose in the OCR but fell in the CCR and RCR between Nov and Dec

• CCR: S$2.974m, lower than S$3.254m in Nov
• RCR: S$1.818m, lower than S$1.922m in Nov
• OCR: S$1.607m, higher than S$1.582m in Nov

Throughout the whole year, the absolute prices of units were largely flat in the CCR, while they dropped in the RCR and rose in the OCR.

• CCR: S$2.974m, slightly higher than S$2.913m in Jan (2.1% increase)
• RCR: S$1.818m, lower than S$1.963m in Jan (7.4% decrease)
• OCR: S$1.607m, higher than S$1.523m in Jan (5.5% increase)

Sizes of units transacted fell for the CCR and RCR but rose in the OCR between Nov and Dec

• CCR: 1,408 sqft, lower than 1,430 sqft in Nov
• RCR: 959 sqft, lower than 988 sqft in Nov
• OCR: 1,058 sqft, higher than 1,047 sqft in Nov

Throughout the year, the sizes of units was up significantly in the CCR, down significantly in the RCR, and flat in the OCR

• CCR: 1,408 sqft, higher than 1,274 sqft in Jan
• RCR: 959 sqft, lower than 1,082 sqft in Jan
• OCR: 1,058 sqft, similar to 1,408 sqft in Jan

Shophouses have been a feature of Singapore’s property landscape since the early 1800’s.

Through the years, it has evolved and modernized, and today it is an asset class that is heavily in demand by high-net-worth investors and institutions.

In this article, we explore

• What are shophouses
• History of shophouses in Singapore
• Types of shophouses
• Architectural heritage and artistic appeal
• Flexible use as commercial or residential space
• Shophouse clusters in Singapore
• Relative scarcity and freehold in tenure
• A new generation of shophouses
• Demand, supply, vacancy, rents and prices
• How to invest in shophouses
• Notable deals
• Challenges and risks investing in shophouses
• A bright outlook
  

What are shophouses?

Shophouses in Singapore are iconic low-rise buildings that are used purely for commercial uses, or combine commercial and residential uses in a single structure.

For shophouses with mixed uses, the ground floor is typically used for retail, F&B, or offices, while the upper floors serve as living quarters.

These structures were designed for dual functionality, reflecting Singapore’s early urban development, in which people lived close to their businesses.

A standard feature of shophouses include a five-foot way – a pedestrian walkway mandated by Sir Stamford Raffles in 1822 – to provide shelter and improved pedestrian connectivity.

Another was the use of internal air wells or courtyards to facilitate ventilation, and timber shutters and tiled facades to address Singapore’s tropical climate.

Shophouse designs were inspired by both colonial Dutch architecture in Java and designs of Southern Chinese courtyard houses brought by immigrants from Guangdong and Fujian.

Because property taxes were historically based on building width, shophouses are notably narrow at the front but extend deep into the city block.

Five-foot ways are common features of shophouses and the flooring is a unique mark that sets them apart from other buildings.

The facade of shophouses are also characteristic and unique, reflecting the culture, influence and design languge of its time.

Most shophouse footprints range in size from 1,000 to 1,500 sqft. Dimensions in the front are usually 4 to 6 metres, and the depth is usually 20 to 30 metres.

For a 2 to 3-storey shophouse, the gross floor area across all the floors will then typically be 3,000 to 5,000 sqft.

There are some shophouses that have rear extensions and attics, and this can increase the gross floor area to 8,000 to 10,000 sqft or more.

History of shophouses in Singapore

The history of the Singapore shophouse begins with the arrival of Sir Stamford Raffles and his Raffles Town Plan of 1822 (also known as the Jackson plan).

The Jackson town plan was a town-planning initiative that mandated uniform buildings with a covered walkway, and this birthed the shophouse’s distinctive narrow and deep form.

Houses were built of masonry and tile roofs to prevent fires in the dense areas with many immigrants.

Most of today’s shophouses were built between the 1840s and 1960s and emerged as a practical solution for merchants who needed to live and work in the same place.

Distinct architectural styles evolved over time, including Early, First Transitional, Late, Second Transitional, Art Deco, and Modern. These stages reflected Singapore’s growing prosperity.

The characteristics of shophouses at these stages can be described as such –

• Early 1840-1900: Shophouses of this style are shorter and have one or two timber windows on the upper storey facade. The early builders made use of locally-sourced construction materials. Plaster ornamentation is minimal.
• First transitional 1900 to 1915: With increased wealth and an influx of skilled labour, shophouses became taller and decorated with plaster and tile. The addition of small glass panels to timber windows became increasingly common.
• Late 1900 to 1940: This is the most spectacular style, particularly in the extensive use of plaster, tile and cast iron ornamentation. Each upper storey facade has three windows with minimal wall in between for maximum ventilation.
• Second transitional 1935-1940: Shophouses of this style are simpler and more streamlined as builders began to cut down on the use of ornamentation; perhaps as a reaction to the exuberant spirit of the Late syle and to the economic situation of the time.
• Art Deco 1930-1960: The Art Deco style is typified by streamlining of classical motifs such as column orders, arches, and pediments into geometric designs. A common feature is a plaque with the date of the building’s construction. Shanghai Plaster was a popular surface treatment.
• Modern 1950-1960: Common features are the innovative use of thin concrete fins and air vents, which are functional as well as decorative. Flat roofs became the norm. Mild steel windows complemented the geometric facade.

In the 1960’s, many shophouses fell into disrepair due to rent control laws and urban modernization.

However, a pivotal shift occurred in 1986, when the URA unveiled its Conservation Master Plan. This saved shophouses in historic districts like Chinatown and Emerald Hill from demolition.

Today, these restored gems have transformed from working-class dwellings into prestige assets, housing Michelin-starred restaurants and family offices, serving as tangible monuments to Singapore’s multicultural heritage.

Types of shophouses

1. HDB shophouses

Managed by the Housing & Development Board, HDB shophouses are a staple of Singapore’s older public housing estates.

These functional structures are designed to serve the community’s daily needs, housing essential amenities such as family clinics, convenience stores, and neighborhood eateries.

Unlike their ornate heritage counterparts, HDB shophouses feature a modern, pragmatic design that blends into the surrounding housing blocks, typically pairing a ground-floor commercial space with a residential flat above.

Ultimately, these units act as vital neighborhood anchors, focusing on social utility and local convenience rather than high-end investment potential.

2. Conservation shophouses

Carefully preserved by the Urban Redevelopment Authority for their immense architectural and cultural significance, these iconic structures boast distinctive features such as elaborate ornate facades, traditional timber shutters, vibrant Peranakan tiles, and intricately decorated pintu pagar (swing doors) and windows.

Echoing Singapore’s rich multicultural heritage—from Chinese, Malay, Indian, and Peranakan influences—these shophouses today seamlessly blend the old with the new, hosting diverse modern uses including professional offices, boutique retail shops, trendy cafés, and creative spaces, all while meticulously retaining their timeless historical charm.

3. Commercial and mixed-use shophouses

Commercial and mixed-use shophouses represent a resilient asset class concentrated in Singapore’s Core Central Region (CBD, Orchard Fringe) and select affluent enclaves.

These structures support a strategic vertical tenant mix—typically blending high-yield ground-floor retail or F&B with upper-level boutique office or residential spaces.

Available in both conserved and non-conserved formats, they offer investors a defensive, flexible vehicle capable of capturing diverse rental demand cycles from a single title deed

4. Residential shophouses

Residential shophouses are properties used solely for residential living, with no retail or commercial activities.

They are typically found along quieter streets or within select conservation areas, appealing to owner-occupiers who value heritage character, individuality, and a distinctive living environment.

Rather than being driven by rental yield or business use, their appeal lies in architectural identity, privacy, and scarcity, making them prized as character homes rather than income-generating assets.

5. Industrial shophouses

Industrial shophouses represent a high-yield, pragmatic alternative to traditional commercial real estate.

Located in key industrial clusters, these functional assets are designed for essential economy services—from central kitchens to logistics workshops.

Unlike flatted factories, they often offer ground-floor loading access and high ceilings, making them highly desirable for SMEs.

For investors, they offer a ‘sweet spot’: the landed tenure of a shophouse combined with the typically higher rental yields of the industrial sector, often without the heavy tax burden of residential assets

Architectural heritage and artistic appeal

Architecturally, shophouses are a unique and eclectic blend of Chinese, Malay, and European influences (often called “Peranakan” style).

The design is best embodies in the “Singapore Eclectic” or “Chinese Baroque” style of the early 20th century.

During this era, shophouse facades became canvases for a riot of ornamentation, where European Corinthian columns and French windows stood alongside auspicious Chinese motifs like dragons, phoenixes, and zodiac animals.

Artistic heritage is found greatest in the meticulous details of shophouses built primarily in the 1900-1940s. Design language used during that period comprised the following

• Majolica Tiles: Colorful, ornate ceramic tiles imported from Europe and Japan adorn the facades and walls, depicting floral and geometric motifs.
• Intricate Plasterwork: Elaborate reliefs featuring Chinese motifs like phoenixes and dragons are often found alongside European festoons and garlands above windows and doorways.
• French Windows and Louvred Shutters: These elements add a touch of colonial elegance and are both functional and beautiful.

Flexible use as commercial or residential space

For this article, we will focus on shophouses that are either zoned “Commercial” or “Residential with Commercial at 1st storey”.

Shophouses zoned “Commercial” are the most ‘liquid’ assets since they are used purely for commercial purposes and can be bought by foreigners without Additional Buyer Stamp Duty.

The flexibility lies in the diversity of permissible tenants. With URA “Change of Use” approval, an upper floor can pivot from a boutique corporate HQ to a high-end aesthetic clinic, a yoga studio, or a private members’ club.

This protects the landlord from sector-specific downturns; if the office leasing market softens, the “wellness” or “lifestyle” economy can fill the void without requiring structural redevelopment.

For shophouses zoned “Residential with Commercial at 1st Storey”, the asset captures two distinct demand cycles. The ground floor generates high-yield commercial income (often F&B), while the upper floors tap into the residential rental market, which is driven by different macro factors.

This hybrid structure is increasingly popular with “creative class” tenants who seek a unique “Live-Work” environment. However, investors must note the tax trade-off: unlike pure commercial units, the residential portion of these hybrid assets will attract Buyer’s Stamp Duty, and if applicable, Additional Buyer’s Stamp Duty.

Foreigners also need approval from the Land Dealings Approval Unit of the Singapore Land Authority to purchase shop houses with a residential element.

Crucially, most shophouses are zoned “Commercial”, meaning foreigners can purchase them without paying hefty stamp duties that apply to residential property.

Additionally, this makes shophouses a suitable investment target for Family Offices and institutional capital.

Shophouse clusters in Singapore

Geographically, shophouses are clustered in the central districts of Singapore.

Some of these districts are historic in nature, like Chinatown, Kampong Glam, Boat Quay, Tanjong Pagar, Emerald Hill and Little India.

However, there are other shophouse clusters at Balestier, Tiong Bahru, Bugis, and Everton Park.

Outside of central Singapore, there are shophouse clusters in East Coast, Katong, Joo Chiat, Upper Serangoon, Thomson, Pasir Panjang and Buona Vista.

Relative scarcity and freehold in tenure

Most shophouses in Singapore are freehold in nature, and this is reflective of their completion in the early days of Singapore, when freehold land was abundant. Only a minority of shophouses are leasehold in nature.

Based on a database of transactions from URA, the breakdown of shophouse tenure is as follows

• Leasehold (comprising 99 up to 200 years leases): 14%
• Freehold (comprising anything above 200 years to freehold): 64%
• NA (not classified due to unknown tenure ): 22%

The preponderance of freehold shophouses is another factor that makes it attractive to investors who want to have something to hold for multiple generations.

Because the Urban Redevelopment Authority (URA) has accorded conservation status to only about 6,500 units, supply is also strictly capped and there is virtually no new construction of such units.

This scarcity creates immense capital appreciation potential and from an investment perspective, shophouses are considered “trophy assets.”

A new generation of shophouses

It’s time to shed the old stuffy image of coolies and blue-collar workers occupying shophouses.

Tenants of modern day shophouses now span a wide range of industries, from Michelin-listed restaurants, to cocktail bars, all the way to medical aesthetics clinics.

Their clientele of these shophouse tenants have also accordingly evolved into a crowd that is well-travelled, well-heeld, creative and global minded, reflective of Singapore’s development from a third-world city into one that is at the cutting edge of trends globally.

Demand, supply, vacancy, rents and prices

Demand

Because of strong shophouse demand from both investors and tenants, shophouses are frequently transacted.

The peak of shophouse transaction volume occurred in 2007 when prices were in the S$1,100 psf range.

In that year, about 520 shophouses changed hands, compared to a range of about 100 to 300 in the years prior.

There was some moderation in transaction volume and subsequent to the peak in 2007 and the global financial crisis, transaction volume moderated to around 100 to 200 annually.

Supply

There is virtually no new supply of shophouses in Singapore as they are a historical building type constructed only between 1840’s and 1960’s.

Hence, the stock of shohouses is fixed and finite. This leads to sticky prices as demand is strong while supply is virtually capped.

One other reason for there being no construction of new shophouses is that they are not land-efficient.

In Singapore’s dense urban landscape, 2-storey shophouses would not be a good use of land, as compared to a 30-storey skyscraper which can house many more tenants, uses and economic activity.

Whilst there may be other supply of ‘shophouses’, these are mainly ‘pesudo’ shophouses built in HDB towns (like Bidadari or Punggol), and they do not carry the same sentimental value and heritage as do those that were built in the 20th century.

Vacancy

While there are no official statistics on shophouse vacancies, on-the-ground checks indicate that vacancy rates are virtually zero.

A walk around various shophouse clusters islandwide will attest to that.

The only exception are shophouse clusters that are very dated and where little to no upkeep has been done. However, such clusters are very few and far between.

Shophouse vacancies only occur when such units need to undergo refurbishment or asset enhancement works. Even then, these shophouses are re-tenanted very quickly when they become available for lease again.

Rents

Shophouse rents are on average S$6.5 psf as of 2025, translating into S$13,00 to S$26,000 per month for a 2,000 and 4,000 sqft space, respectively.

Historically, shophouse rents have trended upwards, in tandem with healthy demand and very little supply. As we will see later, shophouse prices have also followed this general uptrend.

Prices

Shophouse prices have gone through 2 waves of increases, the first being the period after the global financial crisis in 2010 to 2013, where per sq foot prices rose from about S$1,100 to S$3,700 over a period of 5 years.

Prices subsequently plateaued between 2013 to 2021 at the S$3,800 psf to S$4,200 psf range, before rising again during COVID from 2021 to 2034, to a high of around S$5,200 psf.

Since then, in 2024, prices have somewhat moderated as interest rates began to climb and the market took a breather.

Prices as of 2025 are around the S$4,800 psf mark.

Across the entire history of data available, from 1995 to 2025, the annualized growth rate of shophouse prices is 4.8%, meaning S$100 invested into the sector would have turned into S$408.

Together with the increase in per sq foot prices, average ticket size of shophouses has also risen, to around S$7 million as of 2025.

Average prices between 1995 to 2007 were around S$2 million. Post the global financial crisis, prices began a multi-year rise to around S$7 million.

At these price levels, it is most likely the investible domain of high-net-worth institutional investors or a consortium of investors.

In terms of price and psf difference between leasehold and freehold shophouses, they tracked quite closely before 2012, but it is a little surprising that they have they have diverged since then, as seen in the 2 charts below.

The divergence could be due to the strong investor demand for shophouses at a time when capital and liquidity were abundant, while interest rates were low, leading to prices being driven higher.

Another reason could be that freehold shophouses are very tightly held and rarely put up for sale. Due to the limited supply of investible freehold stock, investors gravitated to the next best option which was to invest in leasehold units.

How to invest in shophouses

Here’s a quick checklist of things to take note of before investing in shophouses.

Location

Investible areas are only clusters where shophouses are located. Check out the earlier part of this article on the main clusters around Singapore.

Planning and zoning

As mentioned earlier, for the purpose of this article, our focus is on shophouses that are zoned either “Commercial” or “Residential with Commercial at 1st Storey”.

Shophouses zoned “Commercial” are more straightforward as investment target as it can only be us purely for commercial uses, such as F&B and retail.

When there is a residential element in the shophouse, it involves buyer stamp duties to be paid at purchase, and seller stamp duties if sold within a stipulated time period.

While not overly onerous, this presents another aspect of a shophouse to be managed, in addition to the commercial element.

Tenure

As mentioned earlier, shophouses are predominantly freehold in nature.

While leasehold shophouses may not necessarily be cheaper, given the very strong demand in the overall sector, there certainly are locations where leasehold shophouses can be bought at competitive prices.

For savvy investors or those who do not have a lot of capital to begin with, leasehold shophouses may be an avenue to explore.

Structural condition, capex and conservation status

Some shophouses, especially the ones built or purchased many years back, say in the mid 20th century, when records were not as comprehensive, may have illegal structures, extensions, or mezzanine floors built in.

If you have plans to structurally refurbish a shophouse you just purchased, and you submit renovation plans to URA, they may check, and if found, URA or the relevant government body can require you to make good or demolish any illegal works previously done to the shophouse.

Another aspect of the physical condition of shophouses are that some may have been constructed more than 100 years old and may not have had regular upkeep and maintenance work done. These properties may have timber decay, outdated M&E systems and load limitations, in addition to other structural issues. These need to be checked for thoroughly before any purchase.

Renovation and restoration of shophouses often cost more than modern construction due to the need for specialized materials, craftsmen, and adherence to specific conservation requirements.

If any renovation is planned, the interior and rear portions can be easily uplifted, but care needs to be taken for any works to the facade, structure and character of the building.

Financing

Financing for shophouses can typically go up to 70% to 80% loan-to-value, depending on the purchaser’s income (if an individual) or credit worthiness (if a company).

Taxes

At purchase, these are the taxes that may be incurred

• Buyer Stamp Duty and Additional Buyer Stamp Duty if there is a residential component to the shophouse
• GST if the seller is GST-registered. Buyers who are also GST-registered can also charge GST when they on-sell the shophouse.

At sale, these are the taxes that may be incurred

• Seller Stamp Duty on the residential component if the shophouse is sold within a stipulated time frame

Tenancy and income sustainbility

Shophouses, being a commercially zoned property, attract tenants who naturally are business owners or operators, unlike owner-occupiers in the case of residential properties.

It is ideal that investors be familiar with the commercial and retail sector, its regulations, tenants, and practices.

An investor should also be able to do due diligence on potential tenants and their trades they operate in.

When a buyer purchases a unit used for F&B, they need to check whether F&B use will be permitted to continue, and, if so, for how long. URA typically grants time-limited operational allowances for shophouses, e.g., F&B licenses for 1 year and massage establishments for a period of time.

There may be a risk to a buyer when a shophouse purchased on the assumption that it could continue as an F&B establishment cannot continue in that trade. This could be because surrounding neighbours find that the tenant in the shophouse is causing disamenity, such as noise or rowdiness, to its surroundings.

In such instances, the F&B tenant may need to be replaced with a tenant operating a different business, and depending on who that tenant may be, the rent to the investor may be different from what was expected at the time of investment.

Exit

Shophouses generally attract a savvier type of investor, and the demand pool may be smaller compared to, say, residential properties, when the housing is actually a need from the buyer’s point of view.

Notable deals

Some larger sized shophouse deals in the last 2 years include the following

• Rail Mall – S$78.5m, S$744 psf, Upper Bukit Timah Road, Jun 2024
• Porcelain Hotel – S$65m, S$10,741 psf, Mosque Street, Mar 2018
• Telok Ayer Conservation Area – S$57m, S$3,385 psf, Amoy St, Apr 2023

On the smaller end of the spectrum in non-central areas, there’s the following

• Joo Chiat Rd – S$6.18m, S$6,821 psf, Nov 2025
• Ceylon Rd – S$3.85m, S$2,807 psf, Aug 2025
• Sembawang Park – S$3.25m, S$1,888 psf, Jul 2025

Challenges and risks investing in shophouses

Investing in shophouses requires more savvy than with residential properties. The following are some risks to consider

• Interest rates: Rising rates do affect monthly mortgage payments, and because shophouse prices can be large, the monthly payments can be significant
• Tenants: These tend to be business owners and operators, and shophouse investors need to be able to perform due diligence on such tenants
• Regulations: There are various regulations governing the structural and physical aspects of shophouses, in addition to the legal aspects related to permitted uses and tenants. If there are residential quarters in a shophouse, the regulations surrounding that also need to be considered

A bright outlook

Shophouses have a long and storied history in Singapore, and it has been a consistent feature of the property landscape since the 1800’s.

The sector has gone through changes, modernized and become an investible asset class that now appeals to both local and foreign investors.

Given that this asset class has stood the test of time, the outlook for shophouses should continue to remain bright for the foreseeable future because of its strong and healthy fundamentals.

Demand is healthy from a modern generation of tenants and their customers; there is virtually no new supply, and the stock of shophouses is low across the island.

New condo sales

The value of new private property sales in Nov 2025 reached a total of S$892 million, mainly due to the launch of The Sen at the junction of Old Jurong Road Jalan Jurong Kechil.

The average price per sq foot of all new sales in the month was S$2,528, with the lowest being Altura at S$1,491 psf (as it it an executive condominium) and the highest being Park Nova at S$4,462 psf.

1. The Sen

The project that sold the highest value of new units was The Sen at the junction of Old Jurong Road and Jalan Jurong Kechil, in district 21.

The total amount of sales was S$151 million at an average price of S$2,350 per square feet.

A total of 77 new units were sold at the project, and as of the time of writing, 80 of 347 units across the entire project have been sold since launch this month.

2. The Continuum

The second project that sold the highest value of new units was the Continuum at Thiam Siew Avenue, in district 15.

The total amount of sales was S$52 million at an average price of S$2,630 per square feet.

A total of 22 new units were sold at the project, and as of the time of writing, 672 of 816 units across the entire project have been sold since launch in May 2023.

3. Bloomsbury Residences

The third project that sold the highest value of new units was Bloomsbury Residences at Media Circle, in district 13.

The total amount of sales was S$51 million at an average price of S$2,545 per square feet.

A total of 22 new units were sold at the project, and as of the time of writing, 268 of 358 units across the entire project have been sold since launch in Apr 2025.

4. Zyon Grand

The fourth project that sold the highest value of new units was Zyon Grand at Zion Road, in district 3.

The total amount of sales was S$49 million at an average price of S$3,189 per square feet.

A total of 19 new units were sold at the project, and as of the time of writing, 607 of 706 units across the entire project have been sold since launch in Oct 2025.

5. One Marina Gardens

The fifth project that sold the highest value of new units was One Marina Gardens at Marina Gardens Drive, in district 1.

The total amount of sales was S$44 million at an average price of S$2,998 per square feet.

A total of 18 new units were sold at the project, and as of the time of writing, 558 of 937 units across the entire project have been sold since launch in Apr 2025.

Check this out – you may be interested in a comprehensive list of government land sales since 2017.

Resale condo sales

The value of resale private property sales in Nov 2025 reached a total of S$1.2 billion.

The average price per sq foot of all resales in the month was S$1,680, with the lowest being a unit at Kindol Gardens at S$549 psf and the highest being Sculptura Ardmore at S$6,193 psf.

1. Rivercove Residences

The project that re-sold the highest value of units was Rivercove Residences at Anchorvale Lane in district 19.

The total amount of sales was S$21 million at an average price of S$1,626 per square feet.

A total of 13 units were re-sold at the project in Nov 2025, out of a total of 628 in the development.

2. Sculptura Ardmore

The second project that re-sold the highest value of units was the Sculptura Ardmore at Ardmore Park, in district 10.

The total amount of sales was S$20 million at an average price of S$6,193 per square feet.

Only 1 unit was re-sold at the project in Nov 2025, out of a total of 35 in the development.

3. 1 Canberra

The third project that re-sold the highest value of units was 1 Canberra at Canberra Road, in district 27.

The total amount of sales was S$15 million at an average price of S$1,294 per square feet.

A total of 10 units were re-sold at the project in Nov 2025, out of a total of 665 in the development.

4. Marina One Residences

The fourth project that re-sold the highest value of units was Marina One Residences at Marina Way, in district 1.

The total amount of sales was S$14 million at an average price of S$2,000 per square feet.

A total of 6 units were re-sold at the project in Nov 2025, out of a total of 1,042 in the development.

5. Valley Park

The fifth project that re-sold the highest value of units was Valley Park at River Valley Road, in district 10.

The total amount of sales was S$14 million at an average price of S$2,257 per square feet.

A total of 5 units were re-sold at the project in Nov 2025, out of a total of 728 in the development.

This post provides a summary of the transactions across private condominiums, executive condominiums and landed properties in Singapore in the month of Nov 2025.

Private condominiums

Across new sale condominiums in the month of November, per sq foot prices averaged S$2,578, with the highest being in district 10 (Orchard) at S$3,709 and the lowest in district 17 (Changi and Pasir Ris) at S$2,102.

New projects that were sold in these areas were mainly

• District 10: Park Nova, Upperhouse, and Skye at Holland
• District 17: Kassia

Average per square foot prices (S$) by district in November for condominiums and apartments (new sale only)

Across new, resale, and sub-sale condominiums in the month of November, per sq foot prices averaged S$2,049, with the highest being in district 6 (City Hall, Clarke Quay) at S$3,226 and the lowest in district 17 (Changi and Pasir Ris) at S$1,326.

Projects that were sold in these areas were mainly

• District 6: One Marina Gardens (new sale) and Marina One Residences (resale)
• District 17: Mix of new sale and resale transactions across Hedges Park Condominium, Parc Olympia, and The Jovell

Average per square foot prices (S$) by district in November for condominiums and apartments (new sale, resale, and sub-sale)

Check this out – you may be interested in new condo launches in 2026.

Executive condominiums

Across new sale executive condominiums in the month of November, per sq foot prices averaged S$1,715.

New projects that were sold in the month were all in district 23 (Hillview, Dairy Farm, Bukit Panjang, Choa Chu Kang) and 24 (Lim Chu Kang, Tengah)

• District 23: Altura
• District 24: Otto Place, Novo Place, Copen Grand

Average per square foot prices (S$) by district in November for executive condominiums (new sale only)

Check this out – you may be interested in the outlook for Singapore’s property market in 2026

Across new, resale, and sub-sale executive condominiums in the month of November, per sq foot prices averaged S$1,465, with the highest being in district 24 (Lim Chu Kang, Tengah) at S$1,739 and the lowest in district 25(Kranji and Woodgrove) at S$1,087.

Projects that were sold in these areas were mainly

• District 24: Otto Place, Novo Place, Copen Grand
• District 25: Northwave, Woodsvale, Forestville, Northoaks

Average per square foot prices (S$) by district in November for executive condominiums (new sale, resale, and sub-sale)

Landed properties

Across new, resale, and sub-sale landed transactions in the month of November, per sq foot prices averaged S$2,042.

The majority of landed transactions are concentrated in districts 10 (Bukit Timah, Holland), 14 (Geylang, Eunos), 15 (Katong, Joo Chiat), 16 (Bedok, East Coast), and 19 (Serangoon Gardens, Hougang), which have more prevalence of landed properties.

Average per square foot prices (S$) by district in November for landed properties (new sale, resale, and sub-sale)

List of postal districts for reference

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