1H 2026 Landed Shophouse Report: Transaction Volume Eases as Prices and Central Region Demand Remain Resilient

In the first half of 2026, only 25 sales transactions occurred in the landed shophouse market, decreasing from 45 in the second half of 2025 and 34 in the first half of 2025. This decline in sales volume also led to a reduced total transaction value of $269 million in 1H 2026, down from $361 million in 2H 2025.

However, the lower sales volume does not imply that there is no demand for shophouses. The decrease in sales activity may be caused by a mismatch in prices between buyers and sellers. Moreover, shophouses are usually considered defensive assets, so owners rarely sell them, leading to a limited number of properties available on the market. 

Some shophouses may also have been bought or sold through Special Purpose Vehicles (SPVs) or share transfers. Certain transactions might have been completed without lodged caveats, which is common when buyers or sellers prefer to stay anonymous. Since our analysis relies on lodged caveats, such transactions are not considered. 

Landed Shophouses Transaction Volume and Price

Among the 25 transactions in the first half of 2026, 84% (21 units) were for freehold (FH) or 999-year leasehold properties. The remaining 16% (4 units) involved properties with a 99-year tenure.

This mostly matches our 2H 2025 findings, where 86.7% (39 units) involved properties with freehold or leasehold tenures exceeding 99 years. Only 13.3% (six units) were for 99-year leasehold properties. Nonetheless, total transaction value decreased from $361 million in 2H 2025 to $269 million in 1H 2026.

Chart 1: Transaction volume and transaction value of landed shophouses 

The average psf price of freehold landed shophouses increased from $4,273 in 2H 2025 to $6,500 in 1H 2026. This 52.1% jump was mainly driven by two major deals along Keong Saik Road. The shophouses at 3, 3A, and 3B Keong Saik Road sold for $22 million ($17,089 psf), and the property at 22 Keong Saik Road went for $16 million ($12,715 psf). Both sales rank among the top five transactions in the first half of 2026. 

The average price for leasehold shophouses fell from $6,472 psf in 2H 2025 to $2,521 psf in 1H 2026. However, the 2H 2025 average was skewed by the sale of 37 North Canal Road for $23.9 million ($13,810 psf). In contrast, the highest psf price recorded in 1H 2026 was $5.6 million ($6,268 psf) for a pair of shophouses at 116 and 116A Tanjong Pagar Road. 

Chart 2: Average prices for landed shophouses

In the first half of 2026, more than half of the transactions, over 50%, were in the $5 million to $10 million range, suggesting it is the most favoured price segment for landed shophouses. Meanwhile, transactions at $10 million or above accounted for only 19.7%, down from 26.3% in the latter half of 2025. This shift indicates a decrease in shophouse sales volume during this period.

Out of the 25 transactions in the first half of 2026, just one was below $3 million. This involved a 99-year leasehold shophouse at 129 Owen Road, which sold for $2.2 million ($652 psf). The lower price likely arises from its remaining lease term of only 67 years.

Chart 3: Price quantum of landed shophouse 

Popularity of the Central Region and District 8

In the first half of 2026, 25 shophouses were sold, with 21 located in the Central Region. The North-East and North each saw two transactions. Shophouses in the Central Region tend to have higher rents because of the presence of businesses like eateries and fitness studios.

In the first half of 2026, District 8 (Little India) topped the list with nine transactions, while District 15 (East Coast, Marine Parade) followed with four. These two districts combined accounted for over half of the landed shophouse sales in 1H 2026, indicating strong interest in these locations. This pattern is similar to the second half of 2025, when both District 8 and District 15 each had nine transactions. 

Demand for shophouses in District 8 may reflect Little India’s popularity as a bohemian enclave with unique cafés and trendy shops. Higher footfall from locals and tourists translates into greater tenant demand, allowing landlords to secure higher rents and potentially command higher sale prices for their assets. The nine shophouses in District 8 were sold for between $2.2 million and $15 million.

Chart 4: Top districts by transaction volume in 1H 2026

In the first six months, the leading transaction was the sale of a row of shophouses along Lorong Liput in Holland Village for $70 million ($9,281 psf). These shophouses drew multiple offers from high-net-worth individuals, family offices, and funds due to their freehold status and prime District 10 location. This deal demonstrates strong investor interest in well-positioned shophouses.

The property is a 10-minute walk from Holland Village MRT station, One Holland Village and Holland Road Shopping Centre, increasing foot traffic for the shops on-site. Current tenants in the sold shophouses include Pet Lovers’ Centre and Natureland.

Table 1: Top five shophouse transactions in 1H 2026

Brighter Outlook for 2H 2026 Could Result in More Deals

Earlier this month, the Ministry of Trade and Industry (MTI) upgraded its GDP growth forecast to between 4.5% and 5.5%, an increase from the earlier estimate of 2% to 4%. MTI explained that this upward revision is due to a more optimistic outlook for the second half of the year, largely driven by capital expenditures related to AI. Furthermore, the impact of the ongoing Middle East conflict on the economy has been less severe than initially anticipated. In the first half of 2026, Singapore’s GDP grew by 6.1% year-on-year (y-o-y), surpassing the 5% y-o-y growth seen in 2025. 

The better economic outlook is mainly supported by export-oriented sectors, whereas inflationary pressures might affect domestically focused industries like food and beverage. This could lead to lower retail rents, although government vouchers may help lessen this effect.

Shophouses are highly desirable due to their rarity and distinctiveness, appealing to a broad range of buyers. The lack of Additional Buyers’ Stamp Duty (ABSD) makes them especially attractive to international investors, as they would otherwise face a 60% ABSD on residential properties. Freehold shophouses in the Central Region are likely to remain accounting for majority of the sale transactions. Additionally, the robust Singapore dollar and political stability are expected to continue drawing foreign investors. 

Considering the factors outlined earlier, ERA forecasts approximately 70 shophouse sales transactions in 2026, with total values between $550 million and $650 million.