More shophouses sold in 3Q2026 while leasing activity sees uptick

Buyer interest in Singapore’s shophouse market continued to strengthen in 3Q2026, logging an increase in the number of caveated transactions, according to Huttons Asia’s latest quarterly report on the shophouse market.

A total of 21 caveats were lodged for shophouse transactions in the latest quarter, up from the 16 caveated deals in 2Q2026.

“The segment continues to attract wealth, underpinned by favorable interest rates, constrained supply, and foreign ownership regulations elsewhere in the property market,” said Lee Sze Teck, senior director of data analytics at Huttons Asia.

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Transaction volume and quantum of shophouses in 1Q-3Q2026

Meanwhile, the total transacted quantum stood at $157.7 million in 3Q2026, 18.6% lower than the previous quarter’s $193.7 million.

Despite the decline in transaction value, Huttons’ report noted that the drop reflects “a normalised baseline” after the previous quarter was boosted by the $70 million sale of three adjoining shophouses on Lorong Liput.

That said, higher-value deals continued to dominate shophouse transactions in 3Q2026, with more than 70% of the properties sold during the quarter fetching more than $5 million.

For the first nine months of 2026, caveats show that 51 shophouses were sold, down 25% y-o-y from the 68 caveated deals during the same period last year.

The total transaction value also declined, falling to $441.3 million in the first nine months of 2026. That is 31.5% lower than the $644.5 million recorded in the year-ago period.

During the latest quarter, 999-year leasehold and freehold shophouses accounted for 81% of total transaction volume, with deals concentrated in Districts 8 and 15, Huttons said.

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Lee added: “Investors generally preferred 999-year leasehold or freehold shophouses for wealth preservation.”

Among the largest shophouse deals in 3Q2026 was the sale of a unit along South Bridge Road, which topped the list at $16.8 million.

This was followed by a shophouse along Circular Road, which was purchased for $16.2 million by investor Roman Scott, chairman of The Calamander Group.

Top 5 shophouse transactions by quantum in 3Q2026

Leasing momentum picks up

In the shophouse leasing market, the number of rental contracts rose by 4.2% to 800 in the third quarter, from 768 in the second quarter this year.

This came on the back of restaurant openings, including Árō Singapore, Assaggi, Casa Lola and KIN-NOMI, Huttons noted.

Median rents during the latest quarter remained unchanged on a q-o-q basis at $6.47 psf per month.

Median rents and rental volume of shophouses

In District 2, median rents grew the most for the second consecutive quarter, increasing 8.9% q-o-q to around $7.35 psf per month.

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Looking ahead, Huttons expects Singapore’s shophouse market to remain resilient through the rest of the year, supported by the city-state’s status as a “premier destination” for ultra-high-net-worth individuals to preserve and manage their wealth.

Shophouses are also among the few real estate asset classes with minimal foreign ownership restrictions, which has resulted in tightly held ownership.

“Coupled with limited supply, shophouse valuations remain well-supported over the long term,” said Lee.