Tags: Shophouses, Huttons Asia1. During the third quarter of 2024, the interest in shophouses remained strong despite a decrease in recorded transactions, according to the latest quarterly shophouse market report by Huttons Asia published on November 12.2. In the third quarter, 18 caveats were lodged for shophouse transactions, which is lower than the 21 caveated deals in the previous quarter.3. The total value of the caveated shophouses transacted in the third quarter was $138.9 million, which is 28.8% lower than the previous quarter’s $195.1 million. In comparison to the same period in 2023, this is only half of the $278.6 million transacted during the third quarter of that year.4. The number of caveated shophouse transactions for the first nine months of 2024 was 62, which is a 46.1% decrease compared to the same period in the previous year. The total transaction value for the first three quarters of 2024 was $519 million, which is 48.5% lower than the same period in 2023.5. Despite the reduction in the number of transactions, Huttons’ report highlights that several shophouses in popular districts were sold in the third quarter of 2024, such as Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2. According to market sources, these transactions were not reflected in the caveats as they were sold through private negotiations. The estimated value for these shophouses is more than $70 million.6. These deals demonstrate the continued demand for shophouses, which has seen an uptick in recent months. Lee Sze Teck, senior director of data analytics at Huttons Asia, believes that investors are drawn to this market segment due to its scarcity and the potential for strong capital gains. With the recent lowered interest rates, shophouses have become increasingly popular as a means of creating and preserving wealth. As a result, Lee expects the number of shophouse transactions and total quantum to increase in the fourth quarter of 2024.
Before investing in Singapore, it is essential for international investors to familiarize themselves with the regulations and limitations surrounding property ownership. Compared to landed properties, which have stricter rules, foreign buyers are generally allowed to purchase condos with fewer restrictions. However, they are still required to pay the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Despite this added expense, the steady stability and promising growth potential of the Singapore real estate market continue to attract foreign investment in the realm of condo ownership.