25 Jun 2024
The Shophouse Segment: Market Dynamics and Outlook
Property Insight

Overview of Singapore's Shophouse Market

Shophouses in Singapore, significant for their historical and architectural value, are a crucial part of the country's urban planning. Constructed during the 1800s and 1900s, these buildings have been renovated for modern uses while preserving their distinct architecture. Approximately 6,500 conserved shophouses exist in Singapore, mainly located in historic districts such as Balestier, Beach Road, Geylang, Boat Quay, Chinatown, Kampong Glam, and Little India. These areas offer various uses, from commercial and residential to mixed-use, making shophouses valuable assets.

Impact of Tourism on Shophouse Demand

Singapore's tourism sector showed a strong recovery in 2023, with international visitor arrivals reaching 13.6 million, about 71% of 2019 levels. The hotel industry's performance, with Average Room Rate (ARR) and Revenue per Available Room (RevPAR) surpassing 2019 levels, reflects robust tourism activity. In Q1 2024, international visitor arrivals totaled 4.35 million, a 25.6% increase from the previous quarter. Key markets driving this growth included China, Indonesia, and Malaysia.

Shophouse Transactions and Values

The demand for conservation shophouses boosted the number of transactions from 14 units in 4Q2023 to 21 units in 1Q2024. The total value of these transactions increased by 67.9%, from $107.6 million to $180.7 million. Notable transactions included the sale of a freehold shophouse at 31 Pagoda Street for $19.0 million and three adjoining shophouses in Geylang for $18.7 million.

Rental Market Dynamics

In 1Q2024, the volume of shophouse rental transactions moderated by 4.7% from the previous quarter, totaling approximately 864 transactions. However, the total leasing value increased marginally by 1.1% to $9.7 million, the highest quarterly rental value since 1Q2023. Median monthly rentals for shophouse transactions increased to $6.43 psf in 1Q2024 from $6.36 psf in 4Q2023.

Future Outlook and Strategic Shifts

The demand for shophouses is expected to remain strong, driven by positive tourism trends and the implementation of mutual 30-day visa-free travel between China and Singapore. International visitor arrivals are projected to reach 15 to 16 million in 2024, with tourism receipts estimated at $26.0 to $27.5 billion. The restoration of flight connectivity and positive travel demand trends provide a stable foundation for growth.

Additionally, property cooling measures introduced in April 2023, such as increased Additional Buyer's Stamp Duty (ABSD) rates, have made commercial properties like shophouses more attractive investments. Shophouses that are entirely commercial are not subject to ABSD, benefiting foreign investors and Singaporeans who already own property.

Conclusion

The report highlights the resilience and attractiveness of Singapore's shophouse market. Despite potential global economic headwinds, the positive economic recovery and robust tourism sector are expected to sustain demand for shophouses. Investors, including family offices, are likely to continue considering shophouses as viable investment options. The unique historical and architectural value of shophouses, combined with their limited supply, ensures their continued appeal in Singapore's real estate market.

 Click here for the full report   

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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Property Insight
08 Jun 2026
Higher GLS Supply in 2H2026 Supports Long Term Residential Market Growth

The Government has announced the 2H2026 Government Land Sales (GLS) Programme, which will introduce 4,745 private residential units under the Confirmed List, representing a 3.7% increase from the 4,575 units released in 1H2026. The latest programme reflects the Government's continued commitment towards maintaining market stability through proactive land supply management. By ensuring a steady pipeline of future housing supply, the authorities provide greater visibility to both developers and homebuyers while supporting a more balanced and sustainable residential market.

A notable feature of the 2H2026 GLS Programme is the concentration of supply within several large development parcels. The Town Hall Link White Site alone is expected to yield approximately 1,200 residential units, accounting for about a quarter of the total Confirmed List supply. Together with the Jurong East Avenue 1 Executive Condominium (EC) site, Berlayer Close and Holland Plain, these larger sites contribute a substantial portion of the overall housing pipeline. This suggests that the Government is prioritising land parcels capable of delivering significant housing stock in key growth locations.

The programme also demonstrates a strong emphasis on transit-oriented development. Many of the sites are located near existing or future MRT stations, including Orchard Boulevard, Marina Gardens Lane, Tanjong Rhu Close, Berlayer Close and Town Hall Link. This reflects the Government's ongoing efforts to concentrate housing supply in highly accessible locations where residents can benefit from established transport infrastructure and amenities.

Overall, the 2H2026 GLS Programme reflects a coordinated approach towards meeting future housing demand while advancing broader planning priorities such as decentralisation, connectivity and urban transformation. With sites spread across the Core Central Region, Rest of Central Region and Outside Central Region, the programme offers a diverse range of housing opportunities while supporting long term market stability and sustainable growth. 

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here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Property Insight
18 May 2026
New Home Sales Rise in April 2026 Amid Strong Launch Momentum

Singapore’s new home market maintained its positive momentum in April 2026, extending the strong recovery observed in March as buyer activity continued to gain traction across the primary market. Developer sales rose to about 1,548 units in April, up from around 1,300 units in March, reflecting sustained interest from homebuyers amid a fresh wave of launches. 

The increase in transaction activity was largely supported by the launch of key projects such as Tengah Garden Residences and Vela Bay, which collectively accounted for approximately 74.3% of total monthly sales. Their strong performance highlights how buyer demand continues to be closely anchored to fresh launches that are strategically positioned in terms of location, pricing and long term value proposition.

Tengah Garden Residences emerged as the best performing project of the month, recording 855 units sold at a median price of about $2,111 $psf, while Vela Bay followed with 370 units transacted at a median price of approximately $2,865 $psf. Tengah Garden Residences reportedly achieved a take up rate of over 99% during its launch weekend, marking a significant milestone for Tengah as the precinct’s first fully private condominium development. The project’s strong reception reflects growing buyer confidence in Tengah’s longer term growth trajectory, supported by future infrastructure such as the Jurong Region Line and its increasing connectivity to major employment nodes.

Similarly, Vela Bay’s healthy sales performance reinforces the attractiveness of first mover projects within emerging precincts. Positioned within the evolving Bayshore area and located near Bayshore MRT station, the project benefited from buyers seeking early entry opportunities within a precinct that is expected to undergo progressive transformation over the coming years. The project’s waterfront orientation and proximity to the East Coast corridor further enhanced its appeal, particularly amid longer term coastal transformation plans.

Overall, the April results continue to reinforce a broader market trend where projects located within emerging residential clusters are able to generate strong demand when backed by clear infrastructure visibility and transformation narratives. Buyers appear increasingly willing to commit to developments that offer future growth potential, especially when entering at an earlier stage of a precinct’s evolution. At the same time, the market continues to transition towards a more balanced and sustainable phase, where sales performance is increasingly dependent on the quality, positioning and timing of individual launches rather than broad based exuberance. 

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here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Property Insight
18 May 2026
New EC Policy Changes Aim to Strengthen Owner Occupation and Market Stability

The latest recalibration of the Executive Condominium (EC) scheme represents one of the most significant policy shifts for the segment in recent years, with the measures largely aimed at strengthening genuine owner occupation, improving accessibility for first timer households and supporting more sustainable market dynamics over the longer term. Broadly, the changes also appear aligned with the Government’s wider housing policy direction in recent years, where stronger emphasis has increasingly been placed on longer term occupation and moderating speculative activity across the residential market.

One of the most notable changes involves the extension of the Minimum Occupation Period (MOP) for newly launched ECs from 5 years to 10 years. Under the revised framework, EC owners will now need to occupy their units for a longer duration before they are allowed to sell their homes on the open market. Foreigners and corporate entities will only be eligible to purchase these ECs after the 10th year. The move signals a clear shift towards positioning ECs more firmly as owner occupied housing rather than shorter term investment assets. At the same time, the longer holding period may also moderate near-term speculative demand and reduce rapid turnover within the EC segment.

Another key measure is the tightening of foreigner access to EC resale units. Under the revised framework, foreigners will only be allowed to purchase privatised ECs after 15 years instead of the current 10 years. This effectively lengthens the transition period before ECs fully enter the unrestricted private residential market. The adjustment may help preserve the original social objective of ECs by ensuring that the housing type continues to primarily serve local households for a longer duration.

The Government has also enhanced support for first timer households through changes to allocation quotas and priority schemes. The quota for first timer families purchasing new ECs has been increased from 70% to 90%, reinforcing the intention of preserving EC accessibility for genuine owner occupiers and HDB upgraders. In addition, the priority period for second timer buyers has been extended from 1 month to 2 years, further strengthening the opportunities available for first timer applicants during the initial launch phases.

At the same time, the Deferred Payment Scheme (DPS) for new EC purchases will be removed for future EC Government Land Sales sites. The removal of DPS is likely intended to encourage more prudent financial planning and reduce highly leveraged purchases. While this may result in slightly higher upfront financial commitments for some buyers, it also helps reinforce financial prudence within the market.

Collectively, the measures suggest a broader repositioning of the EC scheme towards longer term home ownership and social support for first timer households. While some moderation in investor driven demand may emerge over time, underlying owner occupier demand within the EC segment is likely to remain supported, particularly from HDB upgraders seeking a transitional pathway into private housing. Over the longer term, the revised framework may contribute towards a more stable and sustainable EC market that remains aligned with its original policy intent.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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