Singapore’s landed shophouse market continued to soften in 2H2025, with 36 transactions recorded valued at $281.2 million, according to property agency ERA Singapore.
Although this was a slight increase from 34 deals worth $235 million in 1H2025, overall activity for the year dropped to a 10-year low. This indicates a sharp slowdown from the 2021 peak, when 245 landed shophouses worth $1.8 billion changed hands.
Transaction volume and transaction value of landed shophouses
According to ERA Singapore CEO Marcus Chu, elevated price levels and increased global economic uncertainty have reduced investor appetite.
However, the actual figure could be higher, as some deals were completed through special purpose vehicles, share sales or without lodged caveats, especially when purchases were not financed with bank loans, Chu adds.
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“The subdued activity reflects a pricing stand-off between buyers and sellers, rather than weak demand. Landed shophouses remain highly sought after, but price expectations continue to be the main obstacle to closing deals,” writes Chu in a note released Dec 17.
Ahead of the new year, ERA forecasts that the low-interest rate environment and investors’ asset recycling strategy could set the stage for more deals to come.
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With interest rates trending lower since the end of 2023, improved affordability and consecutive US Federal Reserve rate cuts in 2024 and 2025 are expected to bolster buyer confidence and support transaction activity heading into 2026, according to ERA, whose parent is the Mainboard-listed APAC Realty.
Against this backdrop, ERA anticipates a recovery in landed shophouse transactions, with 70 to 80 deals expected in 2026, amounting to $550 million to $650 million, as portfolio rebalancing and asset recycling drive larger-ticket transactions.
File photo of shophouses along East Coast Road
Shophouses still hot
Shophouses are expected to remain in demand among local and international buyers, supported by their “rarity, versatility and the absence of additional stamp duties,” says Chu, who is also CEO of APAC Realty.
“Family offices and institutional investors are likely to remain the key buyer groups, particularly for assets in the Central Region or with freehold or 999-year leasehold tenure. At the same time, shophouses suitable for residential or co-living conversion may attract operators seeking to expand their portfolios,” he adds.
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For now, the market continues to diverge by tenure, with 86.1% of landed shophouse transactions in 2H2025 involving freehold or long-tenure assets, reflecting buyers’ preference for properties without lease decay, according to ERA.
Over the same period, average freehold prices fell 18.0% h-o-h in 2H2025 to $3,989 psf, suggesting profit-taking by owners and portfolio rebalancing by institutional investors.
Freehold shophouses continue to demonstrate resilience amid market volatility, retaining long-term value and remaining key holdings for institutional investors, says Chu.
Average PSF prices for landed shophouses
“Elevated freehold prices have also established a pricing floor for leasehold assets, with 99-year leasehold shophouses experiencing a 7.1% increase in average psf price to $4,758 psf, partly driven by an outlier sale at 78 Pagoda Street, which transacted at $12.0 million, or $10,478 psf,” he adds.
Over the past decade, landed shophouse prices have risen, with 2H2025 seeing about two-thirds of transactions (66.7%) clustered in the $5 million to $10 million range. Chu notes that this is the market’s key price band.
Transactions below $5 million were confined mainly to 99-year leasehold properties, non-Central Region locations or smaller units under 2,000 sq ft.
Price quantum of landed shophouses in the last 10 years
Indeed, Central Region and conservation status shophouses remain popular. Out of the 36 landed shophouses transacted in 2H2025, 30 were situated in the Central Region.
Chu says this reflects ongoing demand for centrally located assets that offer higher rental yields from uses such as F&B, fitness and co-living.
ERA data shows that Districts 8 (Little India) and 15 (East Coast/Marine Parade) led activity with nine transactions each, accounting for 50% of total sales, supported by strong footfall, hospitality demand and cultural appeal.
Meanwhile, Districts 7 (Rochor/Bugis) and 1 (CBD) recorded four and three transactions respectively, “underscoring the enduring appeal of prime city locations despite higher prices”, writes Chu.
Top five districts by transaction volume in 2H2025
Notable deals in 2H2025 included the collective sale of three freehold shophouses along Jalan Besar for $36.5 million and a 999-year leasehold shophouse at 65 Club Street, which transacted for $21.0 million.
The latter deal saw JL Family Office — set up by ARA Asset Management co-founder John Lim — selling the property to Singapore-incorporated Asia Success Management.
Meanwhile, conservation shophouses remain tightly held, says Chu, with only about 6,500 units islandwide. “[They] continue to attract investors despite stricter preservation guidelines due to their rarity and long-term value.”
Photo and infographics: Albert Chua/The Edge Singapore, ERA Singapore, ERA Research and Market Intelligence, URA data as of Nov 28, 2025
