Shophouse Property Report Q1 2022
Overview
The shophouse property market has had a
remarkable year in 2021, with 251 transactions
amounting to a total of $1.9 billion – a record value of
annual sales. Commercial shophouses in Singapore
are expected to continue to be well sought after by
investors in Q1 2022 as a form of safe-haven asset as
global uncertainties rose considerably during the
quarter amid escalating geopolitical tensions in
Eastern Europe and rising inflation.
In addition, following the latest round of cooling
measures which were introduced to tame the
buoyant residential property market in December
2021, some investors have been looking at shophouse
opportunities, adding to the robust demand for
shophouses. Furthermore, as Singapore moves
toward living with Covid-19, with the easing of travel
restrictions and safe management measures,
prospects for the shophouse sector has brightened
considerably.

Market Outlook
Demand for and prices of commercial shophouses
are expected to remain strong in the near- to
medium-term. The further reopening of the economy
and borders, the removal of group size limit, as well as
more workers returning to their offices will bolster the
business of many shophouse tenants, particularly
those in tourist spots and the central business district.
With improved sentiment, there is also an upside
potential for rental growth.
As commercial shophouses do not attract additional
buyer’s stamp duty and the seller’s stamp duty, they
will be popular with family offices and high net worth
individuals, both from Singapore and abroad.
However, with the limited supply of shophouses that
are available for sale, the robust demand will unlikely
be met, thereby keeping prices elevated this year,
especially for prime shophouse units.