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A Singapore shophouse is highly sought after in the real estate market because of all the benefits that it has to offer the owner. It’s not only a shop that opens out onto the street, it’s a huge real estate investment. The buildings got their name because it used to be a shop on the bottom with a residence on the top, which allowed the homeowner to be a shop owner within the same property, adding to a significant amount of convenience.
When you’re in the market for a shophouse for sale, you have to consider your industry. You want a great location for your business, as this can affect the amount of business that you ultimately get. The size of the shophouse needs to be a consideration to ensure you have the necessary floor plan for your business.
What your business offers and what the size of your product is will help you to determine what kind of size you need within the market. Once you determine your needs, you can then work with us to find a shophouse in Singapore that will accommodate you on all levels.
The Boat Quay Conservation area along South Bridge Road is a highly desirable area because of the entertainment that is now offered there. This includes bars, clubs, and restaurants – all of which were nowhere to be seen only a decade ago.
The reason this area is so desired is because of the early Art Deco style that graces the streets. There are names carved on the outside of the shophouses that offer the only memory of the merchants that were once in existence. The new property owners are breathing fresh life into the buildings, including adding a new façade that helps to improve the overall appearance while maintaining the artistic style.
There are many businesses that are buying up the properties in this area, renovating them, and then selling them back to business owners and homeowners for a significant profit. Many of the properties are unusable in their current conditions, which means that the renovations are absolutely required.
When you want to purchase a shophouse, you have to consider budget, but you also need to consider location. The Boat Quay Conservation area is not the only location for shophouses in Singapore, but it is the hot spot right now. If location isn’t that important to you, it may be possible to save money and focus on some different areas.
It’s important to talk to us to see what your options are when you want to buy a shophouse. Ultimately, you will need to consider:
- Location – Historic District or Secondary Settlements
- Location growth – E.g Duo @ Bugis gave the Shophouses at D7 a boost!
- Completed or units that need work – Let’s discuss your strategy.
- Budget – you need to factor in A&A or rebuilding cost if needed.
- Risk – appetite and holding power.
- Regulations – GST, full commercial or commercial/residential status. ABSD, SSD obligations for residential portion.
These factors will help to determine what you are actually in the market for based upon availability and affordability.
Why the Move for Shophouses?
There is a sudden push for shop houses throughout Singapore simply because having an office in one cannot be replicated in one of the many high-rise commercial buildings. Many people enjoy the architecture as well as the characteristics of these historic shop houses.
There have been a number of boutique law firms, IT companies, creative firms, and various architectural firms looking to set up offices within these buildings.
These historic buildings are highly sought after because of their characteristics – and this means that buyers are willing to pay premium prices to have them. The costs can vary significantly based upon location, but they are generally higher than what you would find in one of the commercial high-rises. You are also likely going to have a larger square footage within the office and overall property.
People have done an array of different things with the shop houses and this is what makes them so versatile. Some people have used the ground floor as a commercial retail shop, the second floor as a salon, and the third floor as an office. What you choose to do with a shophouse is completely up to you.
Another reason that people are interested in shophouses is because they are finite. People often want what they can’t have, and in this instance, it is shophouses. There are only 5600 buildings throughout Singapore that are marked for conservation by the URA. As a result, there is no new supply and very few of them are on the market for sale. When one is for sale, it can go very quickly – and for a significant amount of money.
A Look at the Future of Shophouses
You may be wondering if the prices for conservation shop houses are going to soar for the near future. Right now, there is significant investor interest in these buildings, especially within such areas as Chinatown, and Little India. Transaction prices have risen due to the investor interest. It has to do with supply and demand. Since supply is minimal, demand is high – and this is what is causing the increase for pricing.
Since the prices are high, it can also act as a deterrent. Ultimately, there are a small number of buyers because they cannot afford $6 million and higher for a shophouse, regardless of how large it might be, and where it may be located. Some of the shophouses are demanding $3000 per square foot in the more in-demand locations.
If you are looking to purchase a shophouse for sale, you need to be aware of the market, the demand, and what you will need to spend. Working with the right company can ensure your needs are met.