Shophouse Property Report Q4 2021
Overview
Despite a slightly muted performance in Q4 2021 amid
the festive season and reopening of borders, the
shophouse market has had a remarkable year of
sales, achieving all-time highs in transaction values
and prices. Over the past year, the surge in interest for
shophouses was fuelled by the pandemic and
instability in various parts of the world. While many
countries struggled to manage the pandemic,
Singapore progressively rolled out its vaccination
programme and reopened its economy efficiently.
This, coupled with the excess liquidity and low interest
rates have helped to spur demand for shophouses
among investors.
On 16 December 2021, the government rolled out a
slew of property cooling measures, including the hike
in the Additional Buyer’s Stamp Duty (ABSD) rates for
foreigners and property investors buying residential
property. In 2022, commercial properties such as
shophouses will likely garner more attention from
investors and foreigners who are looking to protect
and growth their wealth.

Market Outlook
Work-from-home is no longer the default mode of
working from January 2022. Along with the relaxation
on dining-in rules and more tourists visiting Singapore,
it will give a boost to shophouse tenants in the service
sectors. Leasing demand for 2022 is projected to grow
with the relaxation of restrictions and the steady
rollout of vaccine boosters, barring a severe turn in the
pandemic situation.
For 2022, PropNex expects the shophouse market to
further rise in popularity as an investment class, with
more interest coming from foreigners and investors
looking at alternatives outside residential properties,
to avoid the hefty new ABSD rates. This new demand
will boost confidence and prop up asking prices for
shophouses. However, sales volume is not expected to
increase drastically due to the limited availability of
shophouses for sale.