The latest quarterly shophouse market report published by Huttons Asia on Nov 12 revealed that interest in the shophouse market in Singapore remained strong in 3Q2024 despite a decline in caveated transactions.
According to the report, there were 18 caveats lodged for shophouse transactions in 3Q2024, which is lower than the 21 caveated deals in the previous quarter. The total value of these transactions was $138.9 million, representing a 28.8% decrease from the previous quarter’s $195.1 million. Comparison against the same period last year showed that this is only half of the transacted quantum of $278.6 million recorded in 3Q2023.
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Furthermore, caveats for 62 shophouses were registered for the first nine months of 2024, reflecting a 46.1% decline compared to the caveated shophouses sold in the same period in 2023. The total transacted value for the first three quarters of 2024 was $519 million, which is 48.5% lower than the same period in 2023.
Despite the decrease in transaction figures, Huttons’ report stated that there were a number of shophouse deals in 3Q2024 that were not caveated. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, market sources have reported several shophouses being sold along Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2. These deals are estimated to be worth more than $70 million.
This trend is indicative of the strong demand for shophouses, which has picked up in the past few months, as Lee pointed out. He believes that investors are drawn to this market segment due to its scarcity and potential for strong capital gains. With the recent interest rate cuts, shophouses have become a popular asset for creating and preserving wealth. Lee also anticipates that there will be a rise in shophouse transaction volume and quantum in 4Q2024.
In other real estate news, Huttons Asia’s upcoming Sustainability Walk event aims to raise $60,000 for the OneMillionTrees movement. Additionally, a three-bedroom unit at Eden Residences Capitol is up for sale at $5.8 million, and landed home sales volume has increased by 21.3% quarter-on-quarter in 1Q2024.