Singapore shophouse market records weakest quarterly leasing performance in five years

Only 775 rental contracts were signed in Q4.

Leasing activity in Singapore’s shophouse market weakened in the fourth quarter of 2025, as ongoing challenges in the retail and food and beverage (F&B) sectors weighed on occupier demand, according to a report by PropNex Research.

PropNex said intense competition, shifting consumer spending patterns and manpower shortages continued to pressure retailers and F&B operators — key demand drivers for shophouse space. Highlighting the difficult operating environment, PropNex noted reports that about 2,431 F&B establishments closed in the first 10 months of 2025.

Leasing volumes decline

In Q4 2025, a total of 775 shophouse rental contracts were signed, representing a 5.5% quarter-on-quarter decline from 820 contracts in Q3, based on data cited by PropNex. This marked the weakest quarterly leasing performance since Q3 2020, when 770 contracts were recorded.

The value of rental contracts signed in Q4 2025 also fell by 4.1% quarter-on-quarter to $8.25 million, compared with $8.6 million in the preceding quarter, PropNex said.

For the full year of 2025, PropNex estimated that 3,237 shophouse leasing contracts worth $34.9 million were concluded, significantly lower than the 3,566 contracts valued at a record $40.5 million recorded in 2024.

Rents ease for second straight quarter

Shophouse rents slipped for the second consecutive quarter in Q4 2025, according to URA Realis data cited by PropNex. The median monthly rental declined by 1.4% quarter-on-quarter to $6.50 per sq ft, although it edged up 0.8% year-on-year.

At $6.50 per sq ft, the median rent was about 4.8% below the recent peak of $6.83 per sq ft recorded in Q2 2024, PropNex noted.

Mixed performance across districts

Rental trends were mixed across selected districts in Q4 2025, PropNex said. District 7, which includes Middle Road and Golden Mile, recorded the strongest growth, with median rents rising 11.9% quarter-on-quarter. In contrast, District 2 — covering Anson and Tanjong Pagar — saw the sharpest decline, with median rents falling 12.6% over the quarter.

Outlook

Looking ahead, PropNex expects shophouse rents to face continued pressure amid the challenging operating environment for retailers and F&B businesses. More occupiers may defer expansion plans or reassess lease renewals, the consultancy said.

Occupier demand is also likely to be uneven, with stronger interest concentrated in prime, high-footfall locations such as Chinatown, Telok Ayer and Little India. PropNex added that landlords with properties in less sought-after areas may need to moderate rental expectations in the near term.