In the first quarter of this year, the sales of Singapore shophouses soared by 52.2% year-on-year, reaching S$169.1 million. These unique properties are capturing the attention of the wealthy and famous, including Zhang Ying, wife of Alibaba founder Jack Ma, and Hong Kong movie star Jackie Chan.
Shophouses are a type of building originating from the British colonial era, typically featuring a commercial space on the ground floor and residential spaces on the upper floors. In Singapore, they are revered for their historical and cultural value, making them highly sought after by affluent individuals.
According to reports, notable figures such as Zhang Ying, Hong Kong superstar Jackie Chan, and Spanish tycoon Ricardo Portabella Peralta have purchased shophouses in Singapore. Recently, Ray Dalio, founder of Bridgewater Associates, joined this trend by acquiring two shophouses on Club Street.
A report from Knight Frank, a real estate consultancy firm, highlighted that shophouse sales in the first quarter of this year increased by 52.2% year-on-year, totaling S$169.1 million. Mary Sai, Executive Director of Capital Markets at Knight Frank, noted that commercial shophouses along Telok Ayer, Boat Quay, and Stanley Street are fetching over S$5,000 per square foot, making them nearly twice as expensive as retail rental spaces on Manhattan's Fifth Avenue.
Last year's largest shophouse transaction was completed by a Chinese investor who bought six adjacent protected shophouses for a total of S$80 million. These transactions underscore the immense appeal of shophouses among global millionaires.
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Sebastian Seow, CEO of real estate and investment firm Meir Collective, pointed out that shophouses are limited gems in Singapore, with only about 6,000 preserved buildings on the island. These structures cannot be rebuilt due to their intricate designs and unique historical significance, making them highly valued by investors as precious collectibles.
Loh Roy, a director at Propnex specializing in shophouse transactions, mentioned that nowadays, only ultra-high-net-worth individuals with assets exceeding US$30 million can afford to purchase shophouses. These buyers are seeking safe havens for wealth preservation, and shophouses perfectly meet their needs.
The thriving Singapore shophouse market reflects the affluent's pursuit of value preservation and unique assets. As global wealth continues to accumulate, these properties, rich in history and culture, are becoming the new favorites among the wealthy.
Not only international millionaires, but also high-net-worth individuals from Singapore are actively participating in the shophouse buying spree. Government protection policies for shophouses and their rarity have further driven up their value. Experts believe that shophouse prices will continue to rise in the coming years, becoming a highlight in the real estate market.
The influx of wealthy buyers has made the competition in Singapore's shophouse market exceptionally intense. Investors are not only attracted by the commercial potential of these properties but also by their unique status as cultural heritage. The Singapore shophouse market, like a dazzling gem, is drawing global attention.
As more high-net-worth individuals enter the market, the transaction volume and prices of shophouses are expected to keep climbing. In the future, Singapore’s shophouse market will remain a prime investment destination for the wealthy, providing an ideal option for value preservation and appreciation.
