Why are buyers snapping up shophouses?

Three more shophouses have been put on sale in the Central Business District.

Shophouse transaction values saw a 30% increase in the first half of the year, and the market is expected to see continued attention.

In a statement, marketing agent Savills Singapore announced the sales offer of three adjoining shophouses in the Central Business District (CBD).

Savills Singapore Director for Investment Sales & Capital Markets Yap Hui Yee said that shophouses, particularly in the CBD, have always been well-sought after and seen stellar growth since June 2020.

“For contiguous row of adjoining shophouses, it gives the purchaser the flexibility to explore the change of uses potential and such assets are sought after as purchasers can be creative in the restoring of the space by leveraging on the larger floor plates. This is also an excellent opportunity for owner-occupiers such as family offices to acquire a charming flagship property with potential signage right in the heart of Central Business District for their own operations,” said Yap.

In a separate report, real estate agency Knight Frank expects shophouse sales values for 2021 to exceed $1.46b, with sales volumes to breach the 200 unit mark.