Shophouse transaction volume jumps 50% q-o-q in 3Q2025; hits two-year high at 27 transactions: PropNex
In 3Q2025, shophouse deals rose 65.3% q-o-q, amounting to $210 million. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The third quarter of 2025 saw a 50% q-o-q increase in shophouse transaction volume at 27 caveated shophouse deals — the highest quarterly sales in around two years. On a yearly basis, sales volume similarly rose by 50% from the 18 deals recorded in 3Q2024, according to PropNex Research in its shophouse report released on Oct 27.
The agency notes that the actual sales figures in 3Q2025 are likely to be higher as the caveats for some transactions may not have been lodged.
In terms of total transaction value, shophouse deals during the quarter amounted to $210 million, marking a 65.3% q-o-q rise from 2Q2025 and a 51.3% increase from the $139 million recorded in 3Q2024.
“Based on market observation, the key buyer pool for shophouses continues to comprise family offices, high-net-worth individuals and institutional investors,” says PropNex.
The agency attributes the rebound in shophouse sales volume and value to a “recovery in sentiment amongst both buyers and sellers”. They cite moderating interest rates, the sustained strength of Singapore’s economy, and a positive outlook for the tourism sector as key drivers behind the uptick in buyer interest for shophouses.
Of the 27 caveated shophouse transactions conducted, most transactions occurred in District 15 (Katong, Joo Chiat), which topped sales within the quarter with eight deals valued at $47.9 million.
Based on URA caveats, the priciest shophouse transaction in 3Q2025 came from the sale of three adjoining shophouses at Jalan Besar in the Desker Road Conservation Area. The freehold shophouses were sold in September for $36.5 million, or $5,723 psf based on a land area of 6,378 sq ft.
However, the media reported several higher valued shophouse acquisitions that were not caveated, notes PropNex. They include the sale of a portfolio of six conservation shophouses along Stanley Street that transacted in July for $82 million.
The agency highlighted a rise in “big-ticket” shophouse purchases for the quarter. Of the 27 shophouse deals, 59% were priced at above $5 million, while the remainder (41%) were priced at below $5 million.
Stable leasing demand
Meanwhile, leasing demand remained “fairly stable” during the quarter, says PropNex. 3Q2025 saw 816 rental contracts signed, valued at $8.58 million, marking a 2% q-o-q increase in leasing volume from the 801 contracts signed in 2Q2025 and a 4% drop in rental value from $8.9 million in 2Q2025.
1Q2025 saw 836 rental contracts signed, valued at $9.1 million, marking a 4% q-o-q drop in leasing volume from the 871 contracts signed in 4Q2024 and a 6% q-o-q drop in rental value from $9.7 million in 4Q2024.
Alongside the decrease in rental contract value, shophouse rents moderated by 1.3% in 3Q2025, recording a monthly median rental of $6.59 psf per month (pm). On a yearly basis, rents dropped by 0.8%.
PropNex also reports that shophouse rentals saw mixed performance across selected districts. The median shophouse rents in District 7 (Middle Road, Golden Mile) saw the highest rental increase during the quarter, recording a 9% q-o-q increase.
District 14, which includes Geylang and Eunos, posted the stepped drop in its median rental price, dipping by 21.5% q-o-q. Rentals in the prime Districts 1 and 2 also recorded quarterly rental declines of 11% and 4.6%, respectively.
In terms of market outlook, PropNex expects investment demand for shophouses to “remain resilient” due to Singapore’s reputation as a ‘safe-haven’. The agency also notes that the latest revisions to the Seller’s Stamp Duty (SSD) on private residential properties, announced in July, could shift investor focus towards the commercial property market. Commercial properties, which include shophouses, are not subjected to both the SSD and the additional buyer’s stamp duty (ABSD).
“The scarcity and heritage value of shophouses also make them ideal for investors seeking more defensive assets that are perceived to better retain value over time,” the report adds.
The agency expects shophouse leasing demand to remain stable in the near term. That said, rising operational costs among certain tenants, such as F&B operators, could potentially dampen rental upside, they note.
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