The hive of activity centred around shophouse transactions in Singapore has drawn the attention of many investors local and abroad. With transaction volume increasing year on year by more than 10 per cent, in 2021 the real estate value of shophouses sold in Singapore had already exceeded $1 billion by the month of August.
Commercial shophouses are not subject to Additional Buyer’s Stamp Duty (ABSD) unlike residential real estate in Singapore where ABSD costs can add up to 25 per cent to the overall price of a property. Massive appreciation in prices over the past five years have further reinforced the attractiveness of these shophouses as investment assets.
Throughout my 25 years in the real estate industry, I have seen the valuation for shophouses continue to grow exponentially, reaching new heights with each passing year. In 2005, a shophouse in Duxton Hill transacted at $385 psf based on built-up area; in 2021, the same shophouse is valued at $3,000 psf.
Conservation shophouses are limited in supply, have great historical value and come with their own unique story. They have a certain appeal to investors who are seeking to buy up defensive assets, particularly in times of uncertainty. The ability of these shophouses to retain their value ensures their resilience as a property asset over time.
Caveat data by Singapore’s Urban Redevelopment Authority (URA) for property sales in the Central Business District (CBD) for the past two years show that the sale of shophouses in Districts 1 and 2 between January and November almost tripled, rising from 20 in 2020, to 59 for 2021. With only 3,000 shophouses in the CBD area, foreign buyers who are restricted from buying landed properties other than these commercial shophouses are possibly driving the demand.
Bu hikaye Prestige Singapore dergisinin January 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Prestige Singapore dergisinin January 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Sailing Into A Dream
Scenes from the fantasy feature Game of Thrones come to life in the otherworldly landscapes of the Arctic Circle.
Here Come The Sun Seats
Italian furniture has long held the crown for blending luxurious, sophisticated design with impeccable craftsmanship.
ABSOLUMENT FAB
France's premier fair for fine-art and antiques returns for its third edition inside its new home in the Grand Palais.
Through the Director's Lens
Filmmaker JIA ZHANGKE and his protégé RAFAEL MANUEL share their perspectives on life, cinema and their current projects.
THE CUTTING EDGE
Having long played quiet supporting roles in the gem industry, gem cutters are finally having their day in the sun. Four acclaimed independent master gem cutters share more about their love of the craft and the creation of their best pieces.
Spheres of Power
Following up on the gold- and titanium-focused Tiffany Titan by Pharrell Williams launch collection, the superstar now turns to pearls for a softer, but no less striking, second act.
Horological Masterpieces Reimagined
Beyond the wrist, these timekeepers transcend all traditional boundaries.
WILD IMAGINATION
Cartier's latest category-spanning Panthère de Cartier novelties showcase the endless ways in which the panther continues to inspire.
READY FOR ACTION
The latest watch to come from the celebrated Richard Mille and McLaren partnership looks set to be another trailblazing timepiece.
THE RIGHT ANGLES
Twenty-five years after the launch of its last new collection, Twenty-4, Patek Philippe introduces the Cubitus range.
