Shophouses see higher demand and price growth

Cooling measures have shifted investor focus to commercial-zoned shophouses

Three shophouses in Mosque Street - Nos. 48, 49 and 50 (above) - were sold for $64.8 million and converted into a boutique hotel, while four shophouses at Rail Mall (right), a stretch of shopping and dining outlets in Upper Bukit Timah Road, were sol
Three shophouses in Mosque Street - Nos. 48, 49 and 50 - were sold for $64.8 million and converted into a boutique hotel, while four shophouses at Rail Mall (above), a stretch of shopping and dining outlets in Upper Bukit Timah Road, were sold for $63.2 million earlier this year, said PropNex Realty.ST PHOTO: JONATHAN CHOO
Three shophouses in Mosque Street - Nos. 48, 49 and 50 (above) - were sold for $64.8 million and converted into a boutique hotel, while four shophouses at Rail Mall (right), a stretch of shopping and dining outlets in Upper Bukit Timah Road, were sol
Three shophouses in Mosque Street - Nos. 48, 49 and 50 (above) - were sold for $64.8 million and converted into a boutique hotel, while four shophouses at Rail Mall a stretch of shopping and dining outlets in Upper Bukit Timah Road, were sold for $63.2 million earlier this year, said PropNex Realty.ST PHOTO: JONATHAN CHOO

Their rich architectural heritage and distinctive Art Deco facades with decorative motifs make prime conservation shophouses a sought-after asset for investors.

While this type of property has been gaining favour with boutique real estate funds, family offices and high-net-worth people in recent years, shophouses on fully zoned commercial sites have seen higher transaction activity and price growth after the July 6 cooling measures.

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A version of this article appeared in the print edition of The Sunday Times on November 25, 2018, with the headline 'Shophouses see higher demand and price growth'. Print Edition | Subscribe