Shophouses in Singapore are hot too!

A Singaporean real estate company has once again shocked the market by buying a shophouse near Jalan Besar for a whopping price of S$40 million.

It is understood that the shophouse being sold is located at the corner of two streets near Jalan Besar and consists of five adjoining and well-preserved shophouses.

Externally, the building has the architectural features of the late 1920s and is a typical three-story building located in the Little India Heritage Reserve.

With a total floor area of 6,584 square feet, and the fact that the shophouse is a rare freehold, it is not unusual to be able to sell it at this price.

It is understood that the shophouse was bought by 8M Real Estate and will be fully leased to retailers and office tenants in the future and will not be for their own use.

In the past two years, many buyers have been very interested in shophouses in Singapore, with record prices being sold.

In June this year, ABR Holdings also purchased a row of traditional commercial buildings on Club Street in Singapore for a total price of S$25.88 million.

The subsidiary of the SGX-listed restaurant operator also purchased five adjacent shophouses with a total of 7,225 square feet of retail and office space at 1, 3, 5 Club Street and 7, 9 Club Street in Singapore's Outram district in two separate transactions.

In August this year, a shop house at 147 Kitchener Road was sold for a whopping S$8 million. This deal follows a previous transaction that took place only five months ago and was previously valued at S$4.3 million.

Pack Wan, which was incorporated on August 14, 2021, bought the store five months ago. The company's shareholders are Aaron Wan, senior group regional director of PropNex, and his wife.

He got 86% of the proceeds in only 5 months.

In 2021, Singapore's shophouse transactions were even more exaggerated, worth a record high of S$1.9 billion.

Not only that, the overall sales price of shophouses was also at a record high last year, with more than half of the shophouses sold for S$5 million or more.

For example, in late 2021, a mogul Raj Kumar and his son bought Porcelain Hotel for S$90 million.

In addition, Porcelain Hotel in Kreta Ayer Heritage Reserve was also sold to RB Family Office for S$90 million.

Of course, none of the above compares to the sale of a row of shophouses at 20 Trengganu Street, which CBRE Group plans to sell for S$110 million in April this year.

Once the deal is completed, it will immediately break the sales record for a store in Singapore.

Although the Singapore government has just introduced new measures to cool down the property, however, it will have little impact on the shophouses.

Rich people will value their shophouses more in order to invest.