Landed Shophouse Transactions Hit Decade Low in 2025, Even as Prices Remain Steady in the Central Region

SINGAPORE, 17 December 2025 - The landed shophouse market continued to soften in the second half of 2025, with 36 transactions valued at $281.2 million. Although this was a slight increase from 34 deals worth $235 million in the first half of 2025, overall activity for the year dropped to a 10-year low. This indicates a sharp slowdown from the 2021 peak, when 245 landed shophouses worth $1.8 billion were transacted.

Elevated price levels and increased global economic uncertainty have reduced investor appetite. However, headline transaction figures might underestimate actual activity, as some deals were completed through Special Purpose Vehicles (SPVs), share sales, or without lodged caveats, especially when purchases were not bank-financed.

The subdued activity reflects a pricing standoff between buyers and sellers, rather than weak demand. Landed shophouses remain highly sought after, but price expectations continue to be the main obstacle to closing deals.

Landed Shophouses Transaction Volume and Price

The market continues to diverge by tenure, with 86.1% of landed shophouse transactions in 2H 2025 involving freehold or long-tenure assets, reflecting buyers’ preference for properties without lease decay. Over the same period, average freehold prices fell 18.0% half-on-half to $3,989 psf, suggesting profit-taking by owners and portfolio rebalancing by institutional investors.

Chart 1: Transaction volume and transaction value of landed shophouses 

Freehold shophouses continue to demonstrate resilience amid market volatility, retaining long-term value and remaining key holdings for institutional investors. Elevated freehold prices have also established a pricing floor for leasehold assets, with 99-year leasehold shophouses experiencing a 7.1% increase in average psf price to $4,758 psf, partly driven by an outlier sale at 78 Pagoda Street, which transacted at $12.0 million, or $10,478 psf.

Chart 2: Average PSF prices for landed shophouses

Over the past decade, landed shophouse prices have risen, with 2H 2025 seeing about two-thirds of transactions (66.7%) clustered in the $5 million to $10 million range, underscoring this as the market’s key price band. Transactions below $5 million were confined mainly to 99-year leasehold properties, non-Central Region locations, or smaller units under 2,000 sq ft.

Chart 3: Price quantum of landed shophouse in the last ten years

Popularity of the Central Region and Conservation Status Shophouses

Out of the 36 landed shophouses transacted in the second half of 2025, 30 were situated in the Central Region, reflecting ongoing demand for centrally located assets that offer higher rental yields from uses such as F&B, fitness, and co-living.

Districts 8 (Little India) and 15 (East Coast / Marine Parade) led activity with nine transactions each, accounting for 50.0% of total sales, supported by strong footfall, hospitality demand and cultural appeal. Districts 7 and 1 recorded four and three transactions, respectively, underscoring the enduring appeal of prime city locations despite higher prices.

Notable deals included the collective sale of three freehold shophouses along Jalan Besar for $36.5 million and a 999-year leasehold shophouse at 65 Club Street, which transacted for $21.0 million.

Conservation shophouses remain tightly held, with only about 6,500 units islandwide, and continue to attract investors despite stricter preservation guidelines due to their rarity and long-term value.

Chart 4: Top five districts by transaction volume in 2H 2025

Table 1: Top five shophouse transactions in 2H 2025

Low-Interest Rate Environment and Investors’ Asset Recycling Strategy Could Set the Stage for More Deals to Come

Shophouses are expected to remain in demand among local and international buyers, supported by their rarity, versatility and the absence of additional stamp duties. Family offices and institutional investors are likely to remain the key buyer groups, particularly for assets in the Central Region or with freehold or 999-year leasehold tenure. At the same time, shophouses suitable for residential or co-living conversion may attract operators seeking to expand their portfolios.

Despite ongoing global uncertainties, Singapore remains a stable investment hub, supported by political stability, a strong Singapore dollar, a competitive tax regime, and its capacity to attract long-term capital. These factors continue to drive demand for landed shophouses as assets for capital appreciation and wealth preservation.

With interest rates trending lower since the end of 2023, improved affordability and consecutive U.S. Federal Reserve rate cuts in 2024 and 2025 are expected to bolster buyer confidence and support transaction activity heading into 2026.

Against this backdrop, ERA anticipates a recovery in landed shophouse transactions, with 70 to 80 deals expected in 2026, amounting to $550 million to $650 million, as portfolio rebalancing and asset recycling drive larger-ticket transactions.

For media enquiries, please contact:

Lisha Rodney

Public Relations Manager, ERA Singapore

Email: [email protected]

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