Why shophouse?

I also get asked many times why shophouse? Why not invest in private residential, commercial offices, retail or industrial units which may offer more attractive yields?

I will list them down in point form so it’s easier for you to understand.

Advantage over residential
– No Additional Buyer Stamp Duty (ABSD)
– No Seller Stamp Duty (SSD)

Advantage over other commercial/industrial
– Finite supply
– Rare
– Collectible status
– Rich History and Heritage values (especially for conservation shophouses)

Strategy
– Secure run-down units at low prices, add value to them and cash out at the high.

Disadvantage
– High entry cost.
– Yields may not be as favorable when compared with other property classes but the capital gains over the long run can be potentially very rewarding due to the rarity of shophouses. Low supply, high demand = more $!