SHOPHOUSE PROPERTY REPORT - PropNex
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SHOPHOUSE
PROPERTY REPORT
PropNex Research Q4 2021 Shophouse Report
Shophouse Property Report Q4 2021 • Sales volume in the prime areas will likely be thin due
to scarcity in the supply of shophouses available for
sale, as a result of the surge in buying activity in 2021.
Overview
Nevertheless, sales in the secondary settlement
Despite a slightly muted performance in Q4 2021 amid areas such as Jalan Besar (District 8) and Joo Chiat
the festive season and reopening of borders, the (District 15) will make up for the slower sales in the
shophouse market has had a remarkable year of prime districts due to their relatively smaller price
sales, achieving all-time highs in transaction values tags and higher availability of units for sale.
and prices. Over the past year, the surge in interest for
shophouses was fuelled by the pandemic and Transaction Hotspots in 2021
instability in various parts of the world. While many
• Of the 245 shophouse transactions in 2021, most are
countries struggled to manage the pandemic,
located in the city and city fringe area. District 8 (Little
Singapore progressively rolled out its vaccination
India, Jalan Besar) posted the highest sales at 72 units.
programme and reopened its economy efficiently.
This was followed by the shophouses in District 2 (36
This, coupled with the excess liquidity and low interest
deals) and District 1 (32 deals) which were scooped up
rates have helped to spur demand for shophouses
by high net-worth foreigners and family offices.
among investors.
• In terms of transaction value, District 1 led the pack,
On 16 December 2021, the government rolled out a achieving $493.8 million worth of deals in 2021, closely
slew of property cooling measures, including the hike followed by District 2 which recorded $398 million in
in the Additional Buyer’s Stamp Duty (ABSD) rates for deal value.
foreigners and property investors buying residential
property. In 2022, commercial properties such as
shophouses will likely garner more attention from Shophouse Deals by District
investors and foreigners who are looking to protect 2
D28 / Seletar
and growth their wealth.
3
D27 / Yishun, Sembawang 1
2
D26 / Upper Thomson, Springleaf 1
2
Sales Transactions in 2021 D23 / Hillview, Dairy Farm,
Bukit Panjang, Choa Chu Kang
1
0
• Based on caveats lodged, there were 55 shophouse
2
D21 / Upper Bukit Timah, Clementi Park, Ulu Pandan 2
2
D20 / Bishan, Ang Mo Kio
transactions in Q4 2021, down by 11.3% from the 62
2
4
D19 / Serangoon Garden, Hougang, Ponggol 5
deals in Q3 2021, the decline in sales volume was due D16 / Bedok, Upper East Coast, Eastwood, Kew Drive 1
1
to the limited supply of shophouses that were D15 / Katong, Joo Chiat, Amber Road 17
30
available for sale.
21
D14 / Geylang, Eunos 26
D13 / Macpherson, Braddell 6
0
• For the whole 2021, the total number of transactions
7
D12 / Balestier, Toa Payoh, Serangoon 4
2
D10 / Ardmore, Bukit Timah, Holland Road, Tanglin
stood at 245 units, surpassing that of the past eight
3
D09 / Orchard, Cairnhill, River Valley 4
1
years. D08 / Little India 35
72
12
D07 / Middle Road, Golden Mile 15
• The total transaction value of deals in 2021 stood at a D05 / Pasir Panjang, 0
2
Hong Leong Garden, Clementi New Town
whopping $1.88 billion, an all-time record, surpassing D03 / Queenstown, Tiong Bahru 7
the last peak in 2018 which recorded $1.46 billion
3
36
D02 / Anson, Tanjong Pagar 13
worth of deals. D01 / Raffles Place, Cecil, Marina, People's Park 11
32
0 20 40 60 80
2021 2020
Shophouse Transaction Source: PropNex Research, URA Realis
Volume and Value (in S$ millions) by year Top 5 Shophouse Transactions in 2021
450 $2,000
$1,800
• Based on caveats lodged, the top transaction of the
400
$1,600
fourth quarter and also the year was the $90-million
350
$1,400 acquisition of the Porcelain Hotel in Mosque Street -
300
250
$1,200 reflecting a unit price of $8,872 psf on land area. This
200
$1,000 deal is also one of the most expensive shophouse
150
$800 deals of all time in terms of price quantum - the last
100
$600
being The Rail Mall which sold for $63 million in April
$400
50
2018.
$200
0 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Top 5 Shophouse transactions in 2021
Txn Vol 392 298 291 205 106 104 109 150 170 123 145 245
Txn Value
(in mils) $1,205 $1,143 $1,385 $1,266 $585 $657 $714 $1,033 $1,458 $916 $913 $1,881
Unit Price
Txn Vol Txn Value (in mils) Transacted Area
Location Sale Date District ($ PSF) on Tenure
Price ($) (SQFT)
Land Area
Source: PropNex Research, URA Realis
PORCELAIN HOTEL 99 yrs
46,47,48,49,50 26 Nov 2021 1 $89,999,999 10,144 $8,872 leasehold
MOSQUE STREET
202,204 999 yrs
• Shophouse deals in 2022 will likely be driven by SOUTH BRIDGE ROAD
11 Aug 2021 1 $35,000,000 2,455 $14,255
leasehold
demand from investors who are looking at 30,32,34,36,38,40 16 Dec 2021 15 $31,800,000 13,996 $2,272 Freehold
JOO CHIAT PLACE
alternatives outside the residential market, which is 201 JOO CHIAT ROAD 29 Oct 2021 15 $31,500,000 6,031 $5,223 Freehold
affected by new property curbs. 277, 279
NEW BRIDGE ROAD
30 Apr 2021 2 $28,000,000 2,541 $11,018 Freehold
Source: PropNex Research, URA Realis
1PropNex Research Q4 2021 Shophouse Report
Shophouse Prices Rents
• In terms of unit prices on land area ($psf), shophouse • In Q4 2021, the rental market cooled down slightly
prices in the hotspots of Singapore (District 1, 2, 7, 8, 14, from the previous quarter, in part due to the festive
15) have increased to varying degrees this year. season where a number of decision makers were
Shophouses in Districts 1 and 2, especially those away. 882 rental contracts were signed, down from
located along Telok Ayer, Amoy Street, Boon Tat Street, 914 contracts signed in Q3 2021 while total rental
enjoyed buoyant demand from buyers. While prices values fell slightly to $8.08 million from $8.3 million in
for shophouses in the rest of Singapore remained Q3 2021.
stable or declined slightly.
• Shophouse rentals remained resilient in 2021, though
• The average transacted unit price on land area* of there were some weak spots, especially in tourist
freehold and 999-year leasehold shophouses in D1/D2 districts and consumer-facing business that were
and D7/D8 grew by 6% to 10% YOY respectively in 2021. affected by the pandemic restrictions during the
year.
• Meanwhile, 99-year leasehold shophouses in D7/D8
saw the average unit price on land area in 2021 went • However, the shophouse leasing activity was still
up by 11.6%, while it was by 44% in D1/D2 – the latter robust in 2021 despite the pandemic. There were 3,535
being the fastest pace of growth in average unit price rental contracts signed in the whole year 2021, making
for shophouses in D1/D2. it the busiest year in terms of rental transactions.
• Capital appreciation for shophouses will remain firm • Meanwhile, total leasing contract value for the whole
as investors compete for the limited supply of year stood at $31.3 million, surpassing the last peak in
properties available for sale; and with more owners 2019 with $28.9 million worth of rental transactions.
reviewing their asking prices, especially for those in
the prime districts.
• Of the 55 shophouses sold in Q4 2021, about 20% or 11
Shophouse Leasing
transactions were priced between $5 million and $10 Transactions and Contract Value
4,000 $35,000,000
million – falling from the 20 transacted in the previous $31,341,210
quarter. Based on caveats lodged, there were more 3,500
$28,911,951
$30,000,000
large quantum transactions of over $10 million in Q4 $27,080,792
$25,708,444
$27,106,511
$24,975,170
2021 at 18 deals compared with 10 deals in Q3. 3,000
Number of Contracts
$23,795,237 $26,635,354 $25,000,000
$22,090,024
$24,190,791
2,500 $19,996,288
$20,000,000
$17,192,518
2,000
Average unit prices of shophouses by
$15,000,000
1,500
tenure and district 1,000
$10,000,000
Unit Price D1 & D2 D7 & D8 D14 & D15 Rest of
($ PSF) on Year Raffles Place, Little India, Geylang, Joochiat, Singapore $5,000,000
500
3,094
3,535
land area
3,099
2,986
Tanjong Pagar Golden Mile East Coast (RCR, OCR)
2,893
3,087
2,892
2,929
3,027
2,937
3,041
2,977
2020 $4,723 $2,936 No transactions recorded $587
99-year 2021 $6,784 $3,277 $2,888 $571 - $0
leasehold 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
% YOY -2.7%
change 43.6% 11.6% NA
Number of Rental Contracts Total Value of Rental Contracts ($)
2020 $8,770 $3,619 $2,600 $3,131
Freehold &
999-year 2021 $9,640 $3,848 $2,797 $3,172
leasehold % YOY
Source: PropNex Research, URA Realis
change 9.9% 6.3% 7.6% 1.3%
Source: PropNex Research, URA Realis Market Outlook
*Average unit price is based on land area. Transacted prices tend to be
Work-from-home is no longer the default mode of
higher when they are based on gross floor area (which varies depending working from January 2022. Along with the relaxation
on the number of storeys in the shophouse property). 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
Price range on shophouses sold by quarter with the relaxation of restrictions and the steady
rollout of vaccine boosters, barring a severe turn in the
Price Range Q1 2021 Q2 2021 Q3 2021 Q4 2021 pandemic situation.
Under $2.5 million 7 6 3 1
For 2022, PropNex expects the shophouse market to
$2.5 million to < $5 million 21 22 29 25
further rise in popularity as an investment class, with
$5 million to < $10 million 18 26 20 11 more interest coming from foreigners and investors
looking at alternatives outside residential properties,
Above $10 million 11 17 10 18 to avoid the hefty new ABSD rates. This new demand
Total Transactions 57 71 62 55 will boost confidence and prop up asking prices for
shophouses. However, sales volume is not expected to
Source: PropNex Research, URA Realis increase drastically due to the limited availability of
shophouses for sale.
2Author: Wong Siew Ying Head of Research and Content DID : (65) 6829 6669/ 9745 3035 Main : (65) 6820 8000 | Fax : (65) 6829 6600 Jean Choo (Ms) Research Analyst | Marketing & Communications Main : (65) 6820 8000 | Fax : (65) 6829 6600 Marketing and Communications: Carolyn Goh Director, Corporate Communications and Marketing PropNex Limited (SGX Mainboard Listed Company) DID : (65) 6829 6748 / 9828 7834 Main : (65) 6820 8000 | Fax : (65) 6829 6600 Fazilla Nordin Corporate Communications Manager DID : (65) 6829 6746 / 9188 5760 Main : (65) 6820 8000 | Fax : (65) 6829 6600 PropNex Realty (A subsidiary of PropNex Limited) 480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
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