“Shophouse Prices Surge Beyond $7,000 psf Driven by Demand from Chinese Investors “

SINGAPORE: According to a report by property portal Edgeprop on April 25, the rising prices of conservation shophouses in Singapore have now surpassed $7,000 per square foot (psf), largely due to an influx of investors from China.

Mr. Loyalle Chin, director at PropNex ShophouseHuat and associate group division director of PropNex Realty, noted, “A fresh wave of overseas investors, including those from China, are setting record prices in commercial shophouses in the CBD.”

A notable sale earlier this month involved a two-storey, 999-year leasehold conservation shophouse on Amoy Street, which sold for $21.8 million, translating to $6,998 psf. Chin had previously brokered the sale of the same property just last November for $18.688 million, or $5,999 psf, marking a nearly 17% increase in just a few months. The latest buyer is NC Properties, reportedly linked to Hong Kong’s New Century Group, which has also invested in conservation shophouses on Telok Ayer and Circular Road.

Richard Tan, senior associate group district director at PropNex, added that several other shophouses in the CBD and Chinatown have also sold for prices exceeding $7,000 psf.

Chin mentioned that some Chinese nationals initially intended to convert Good Class Bungalows they rented in prime areas into party venues. However, they discovered that such commercial activities are prohibited in private residential neighborhoods, leading to increased interest in commercial shophouses that can be utilized as nightclubs or entertainment venues with the appropriate licenses.

This type of property appeals to affluent Chinese buyers, as it enables them to host live shows, entertain guests, and open venues to the public. One such example is the shophouse on Amoy Street, which currently houses the Havana KTV Nightclub, set to have its lease expire in June.