Shophouse sales in Singapore fell 18.6% quarter on quarter to $157.7 million in 3Q2026, with only 21 deals recorded. High prices and scarce stock explain the slowdown, while rents held broadly steady at $6.47 psf per month. Although the underlying demand for shophouses in Singapore has remained robust, high prices and the lack of available properties on the market have caused this segment of the market to moderate.
Volume Drops and Price Trends
The third quarter saw 21 shophouse transactions close, representing an 18.6% decline from the previous quarter. Huttons notes that the current numbers come off a relatively higher base, particularly following a standout $70 million transaction involving the sale of three adjoining shophouses at Lorong Liput in 2Q2026. This recent sale highlights the disparity between a few high-value deals and the overall decline in volume.
Looking at the broader trend, shophouse sales have been on a downward trajectory over the past five years. Total sales volume amounted to nearly $2 billion in 2021, fell to around $1.6 billion in 2022, and dropped to just over $1 billion in 2023. Over the first nine months of this year, there were 51 shophouse transactions that raked in a total of $441.3 million, down from the 68 deals that amounted to $644.5 million that closed over the same period in 2025. This is a yearly contraction of 31.5%.
High-value deals continue to dominate the market, accounting for 70% of all transactions worth $5 million or more. The top four shophouse transactions by price in the third quarter were located at 261 South Bridge Road, which sold for $16.8 million, followed by 85 Circular Road at $16.2 million. The third deal at 406, 406A, and 406B Joo Chiat Road fetched $10.1 million, and the fourth at 164 Serangoon Road closed at $9.8 million.
Investment Preferences and Districts
Buyers continue to show a strong preference for freehold and 999-year leasehold assets, with 81% of all shophouse deals last quarter involving properties of these tenures. Huttons Asia states that these assets remain the preferred choice for wealth preservation. The agency also notes that investment interest has not vanished, though the process is slower due to the complexity of submitting approvals for a change of use and the time required to finalise deals.
Geographically, shophouse activity is concentrated in District 8, which includes Little India, Farrer Park, and Jalan Besar, as well as East Coast neighbourhoods in District 15 like Joo Chiat. Recent lease activity has been supported by new restaurant openings, including Árō Singapore, Assaggi, Casa Lola, and KIN-NOMI.
The lifting of restrictions on new hotels, hostels, and serviced apartments in Upper Circular Road and Beach Road did not lead to a spike in caveats lodged in either area last quarter. Huttons expects shophouse prices to remain steady, a position supported by tightly held ownership. Owners face little pressure to sell unless a premium price is offered, which helps maintain a floor on values even as the volume of sales declines.
Rental Market Remains Stable
Rental demand held up reasonably well due to the new restaurant openings. The islandwide average rent increased by 0.6% from the previous quarter to $6.47 psf per month. District 2 saw a slight decline to $7.35 psf per month, while District 8 experienced a 6.7% increase to $6.17 psf per month.
