Singapore shophouse leasing demand declines by 4% in Q1

There were only 836 rental contracts during the quarter.

In a recent report, PropNex said leasing demand for shophouse spaces in Singapore slowed during the first quarter. With 836 rental contracts signed in Q1 2025, this represented a contraction of 4.0% QOQ from 871 contracts in Q4 2024.

“Similarly, the value of rental contracts signed in Q1 2025 was also lower at $9.1 million compared with $9.7 million in Q4 2024,” the report added.

Here’s more from PropNex:

Meanwhile, shophouse rentals remained measured in Q1 2025, with a monthly median rental of $6.47 psf according to caveats lodged. On a quarterly and yearly basis, rents inched upwards by 0.3% and 0.6% in Q1 2025, respectively.

Across selected districts, shophouse rentals saw mixed performance in Q1 2025. District 15 (Katong, Joo Chiat) saw the highest rental increase of 12.2% QOQ, followed by District 7 (Middle Road, Golden Mile) with a 6.4% increase QOQ. Conversely, shophouse rentals in District 8 (Little India) posted the steepest decline of 9.2% QOQ.

High overhead costs paired with cautious consumer spending is expected to put pressure on Singapore retailers and F&B operators. This may curtail their willingness to pay higher rents when renewals are up.