Singapore shophouse sales to hit up to S$800m in 2024

This is lower than the previous forecast of up to S$1.2 billion.

As the shophouse transaction market in Singapore has become quiet despite underlying interest expressed in enquiries from interested parties, Knight Frank analysts said price growth is expected to slow down alongside market activity. 

A readjusted sales volume of around S$700.0 million to S$800.0 million is projected for the whole of 2024, lower than the S$1.1 billion to S$1.2 billion forecast made at the end of 2023. 

Here’s more from Knight Frank:

Notwithstanding the current muted shophouse scene amid elevated interest rates, boutique developers will continue to scout for older shophouses with the intent to refurbish these properties over the medium-term. Typically, ticket sizes of between S$5 million to S$6 million per typical conserved shophouse fall within the reach of such asset enhancers. 

By adding value to aged conservation properties in historical neighbourhoods, better occupiers are introduced, income streams grow, and the assets appreciate in value. Eventually, entire neighbourhoods are gentrified.