Shophouses: Kampong Glam and Little India poised to be the next growth area

By Terry Wong / Cushman & Wakefield | June 21, 2019 9:03 AM SGT
The story of shophouses within the CBD has already been adequately covered over the past few years. Location, location, location – this has always been a key factor to consider when investing in real estate. Due to the intense popularity of shophouses, supply is very tight, with little room for negotiation as both sellers and buyers are at a standoff in terms of price.
Shophouse investors are now beginning to set their sights on two other conservation areas with tremendous potential in terms of capital and rental growth: Kampong Glam in District 7 and Little India in District 8.
Kampong Glam – the trendy enclave
Kampong Glam, known for its rich cultural history and trendy lifestyle scene, holds a lot of promise. Located to the north of the Singapore River, in the planning area of Rochor, it is in close proximity to the Bugis precinct. This is an added bonus, leveraging on the promise of revitalisation in the area.
Kampong Glam is located to the north of the Singapore River, in the planning area of Rochor (Pictures: Cushman & Wakefield)
Guoco Midtown is in the works (expected completion in 2022); Shaw Tower will be redeveloped in 2020 (slated for completion in 2023); Golden Mile Centre and Textile Centre will be redeveloped alongside these new developments if their attempts at collective sale are successful.
The upcoming new developments, together with the recently completed developments such as City Gate, Concourse Skyline, Duo Residences and South Beach Residences, will bring about a major rejuvenation within the Ophir-Rochor corridor. The recently completed residential developments have contributed to over 1,500 residential units added in the area (excluding the highly anticipated government land sales (GLS) parcel at Tan Quee Lan Street that has a tender closing on Sept 5, 2019). There is a self-sustaining footfall that is likely to increase further, generated through the new residents and office/hotel occupants, thus breathing a new lease of life into the existing buildings, as well as the reshaping of the trade mix, leisure, and F&B options.
This is a timely window for shophouse investors with a medium- to long-term view on investment. It is an opportune time to start planting the seeds of investing in a new growth location. Rents...