Singapore shophouse transactions drop by 17% in Q1

There were only 19 deals during the quarter.

Based on caveats lodged, a recent PropNex report revealed that there were 19 shophouse transactions in Singapore in Q1 2025, falling 21% QOQ from the 24 deals in Q4 2024.

“Year-on-year, the sales volume in Q1 2025 dropped by 17% from the 23 deals in Q1 2024. As the caveats for some transactions may not have been lodged, the actual sales figure for Q1 may be higher,” the report said.

Here’s more from PropNex:

The 19 shophouse deals in Q1 2025 amounted to $100 million, a 43% drop in value compared with the previous quarter. Similarly, sales value declined 46% YOY from $185 million in Q1 2024.

The pullback in shophouse sales volume and value is likely due to a combination of factors, including geopolitical tensions, concerns about trade tariffs impact, and a mismatch in pricing expectations. Investors are likely more cautious, amid macroeconomic uncertainties.

Market watchers note that the shophouse hotel investments sales market might see a resurgence in the next quarter. The acquisition of the 48-key boutique hotel 21 Carpenter is in progress at the time of writing, with a purchase price of about $100 million - equating to a near-record price of $2.08 million per key.

Separately, Duxton Reserve Singapore, Autograph Collection is said to have been sold in early April, at $80 million. Meanwhile, the 138-room Hotel 1900 in Mosque Street, near Chinatown has been put up for sale, with a guide price of about $170 million.

Notwithstanding near-term uncertainties, shophouse hospitality assets remain attractive as Singapore’s tourism sector is poised for another year of growth in 2025.

Overall, shophouses with a freehold or 999-year leasehold tenure made up 90% of the sales transactions in Q1 2025, with the rest being 99-year leasehold shophouses.