Shophouse sales reap tidy profit due to limited supply
Published on Sep 22, 2012 6:00 AM
Shophouses have been consistently good performers for investors this year, with the value of transactions going through the roof.There were 192 shophouses sold in the first eight months of the year, worth $944 million in all.
That beats the $892 million worth of deals chalked up in the same period last year, although there were 233 transactions, according to property consultancy CBRE.
Experts say the limited supply of these architectural gems, particularly conservation shophouses in areas like Chinatown, is sustaining demand.
Centrally located shophouses typically have lower yields but higher capital appreciation, while it is the reverse for suburban shophouses, they add. Median prices have surged 35 per cent, from $1,867 per sq ft (psf) last year to $2,520 psf in the first eight months of this year, said CBRE.
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