Singapore Q4 shophouse transactions hit lowest quarterly sales since 2010

There were only 15 transactions during the quarter, down 60% QoQ.

According to a recent report from PropNex, Singapore’s shophouse market ended 2023 on a quiet note with muted sales and lower sales values.

Against the backdrop of a soft economic outlook and heightened due diligence after the anti-money laundering blitz in August, the analyst said shophouse investment sales posted one of its slowest quarters of deal flows in Q4. Leasing activity, meanwhile, remained resilient on the back of tourism recovery.

Here's more from PropNex:

Based on caveats lodged, there were only 15 shophouse transactions recorded in Q4 2023, plummeting by 60% QOQ from the 37 deals in Q3 2023. This is the lowest quarterly sales based on transaction data since 2010. Half of transactions done during the quarter are in District 8.

Year-on-year, the volume of shophouse transactions in Q4 was down by 58% from the 36 deals in Q4 2022. The pullback in sales could be attributed to the weaker market conditions and the time taken to conduct more extensive due diligence. In addition, the caveats for a number of deals may not have been lodged and thus not captured in the data.

Based on caveats lodged, there were only 15 shophouse transactions recorded in Q4 2023, plummeting by 60% QOQ from the 37 deals in Q3 2023. This is the lowest quarterly sales based on transaction data since 2010. Half of transactions done during the quarter are in District 8. 

Year-on-year, the volume of shophouse transactions in Q4 was down by 58% from the 36 deals in Q4 2022. The pullback in sales could be attributed to the weaker market conditions and the time taken to conduct more extensive due diligence. In addition, the caveats for a number of deals may not have been lodged and thus not captured in the data. 

In terms of transaction value, the deals in Q4 amounted to $95 million, marking a sharp 70% decline from the previous quarter. Year-on-year, the value of transactions in Q4 also fell by about 70% from nearly $321 million in Q4 2022. The fall in values of shophouse deals can be attributed to fewer big-ticket acquisitions during the quarter.

In 2023, the shophouse market has recorded 131 deals worth about $1.14 billion, shrinking from last year’s sales of 191 deals worth $1.6 billion. It is the slowest sales volume achieved in a year since 2019 where 123 deals fetched a total of $916 million, according to caveat data.