The Movement of Shophouses: Districts to Watch in 2024
If you're considering investing in shophouses in Singapore, it's important to know where to look. With their unique architectural features and rich cultural heritage, shophouses offer a distinctive investment opportunity that sets them apart from other types of properties.
However, not all districts in Singapore are created equal when it comes to shophouse investments. Some districts offer better value for money, while others have already reached their ceiling prices.
So, where should you invest in shophouses in Singapore in 2024?
In this article, we'll explore the latest trends and investment opportunities in the shophouse market in Singapore. By the end of this article, you'll have a better understanding of where to look for shophouse investments in Singapore and what factors to consider when making your investment decisions.
Why Shophouses are a Valuable Investment?
A Brief History of Shophouses in Singapore
Shophouses were designed in the 19th century to accommodate businesses on the ground floor, with living quarters upstairs. These buildings were influenced by Chinese courtyard houses and colonial architecture but are unique to the region.
Shophouses were originally used by merchants and their families, but as large waves of immigrants moved to Singapore, they soon evolved into cramped, unhygienic shared dwellings.
Today, shophouses are highly sought after by investors due to their unique architecture and prime locations.
Shophouses are a valuable investment for several reasons.
- They offer a unique blend of old-world charm and modern functionality, making them highly sought after by businesses looking to create unique and curated experiences outside of traditional malls.
- Shophouses are a limited resource, with only a few thousand preserved structures left in Singapore.
This scarcity has driven up their value, making them a lucrative investment option.
6 Factors to Consider When Buying a Shophouse
ALLOWABLE USE FOR SHOPHOUSES:
Shop, Office & Services
- Shop
- Laundromat
- Office
- Massage Establishment
- Medical Clinic
- Pet Shop
- Pet Boarding
Food & Beverage
- Restaurant
- Bar/Pub
- Restaurant and Bar
- Nightclub
Education
- Commercial School
- Childcare Centre
Sports & Recreation
- Fitness Centre/Gymnasium
- Amusement Centre
Accommodation
- Residential
- Backpackers' Hostel
- Hotel
- Students' hostel
- Serviced Apartment
- Workers' dormitories
Industrial-Related Uses
- Light Industrial Use
- General Industrial Use
- Industrial Training
- Warehouse
- Industrial Canteen
- Showroom
- E-business
- Core Media Activities
Community-Related Uses
- Association/ Community Club/ Family Service Centre
Religious Use
- Religious Activities
- Limited & Non-Exclusive Religious Use
127 Shophouses Sold and Total Transacted Value is $1.22B in 2023!
In this 2023, the shophouse market in Singapore has seen significant activity, with 127 shophouses sold and a total transacted value of $1.22 billion. This robust performance underscores the enduring appeal and investment potential of shophouses in Singapore.
Below are some of the transactions this year:
District 1, 2, 7, 14, and 15 Prices and Transactions in 2023
Based on the data below, District 15 appears to have the most consistent sales activity, with prices varying between $1264 and $6,026.
District 1 also shows strong sales, with prices ranging from $4,147 to $22,136. District 7 and District 14 have shown some fluctuation in sales and prices, while District 2 has been relatively quiet.
In terms of investment potential, District 15 and District 1 may be the best options for 2024, given their consistent sales activity and relatively stable prices.
The decline in prices in some districts may indeed present opportunities for investors to acquire properties at lower costs and potentially benefit from future price appreciation, depending on the specific market conditions and individual property characteristics.
Factors that Affect Prices and Transactions in Each District
The shophouse market in each district is unique, with different factors affecting prices and transactions. Here's an overview of the shophouse market in each district:
Act Now: Secure the Potential of Shophouse Investments in Singapore
As we approach the end of 2023, the shophouse market in Singapore has experienced a mixed performance, with varying trends and investment opportunities across different districts. However, amidst these trends, there are still compelling opportunities for investors in the shophouse market.
The recent decline in shophouse prices in some districts presents an attractive entry point for investors looking to capitalize on the market's potential for future growth.
If you are considering investing in shophouses in Singapore, now is the time to explore the market and identify the best opportunities for your investment strategy. Whether you are looking for a defensive asset to preserve and grow your wealth, or seeking to leverage the exclusivity and value of conserved shophouses, the current market conditions offer a range of compelling opportunities for investors.
Don't miss out on the chance to secure a valuable asset in one of the world's most dynamic real estate markets.
Get in touch now!
