More competition, changing tastes put heritage in Kampong Gelam at a crossroads

SINGAPORE – Two centuries after Sultan Mosque was built in its heart, Kampong Gelam’s community is working to retain the district’s identity as rising rents and new retailers change its look and feel.

Longstanding tenants – among them textiles and haj goods traders – now face sharper competition from international chains, souvenir shops and massage parlours.

Rents in the area, once a gathering place for Malay/Muslim intelligentsia and pilgrims to Mecca, have gone up following an increase in investor demand for its more than 600 conserved shophouses.

Shopkeepers and others working in the community said Kampong Gelam is dealing with the tension between retaining its past and modernising. Some are working to find a middle way where it can evolve while keeping its unique character.

Mr Syed Osman Alsagoff, place director of Kampong Gelam Alliance, said recent rent hikes have forced some longstanding businesses out of the area, while others have shut down.

The alliance – a voluntary group of residents, cultural institutions, business organisations, property owners and hotels – helps to find new premises within the district for heritage restaurants at risk of being displaced.

One of these was Warong Nasi Pariaman, said to be Singapore’s oldest nasi padang shop, which closed suddenly in January and put a spotlight on the struggles of traditional trades there.

Others that have closed down or moved out in the past decade include shops selling rings or wicker and rattan baskets.

But there is no official data tracking how many of such businesses have closed.

When The Straits Times visited 228 buildings around Aliwal Street, Haji Lane and North Bridge Road, it found that compared with 10 years ago, food and beverage outlets had risen from about 17 per cent of shops to comprise nearly a quarter.

Retail shops had declined slightly from about 41 per cent to 38 per cent, and in streets like Haji Lane, photo booths and souvenir shops have sprung up, replacing boutiques and other small retailers.

“We are worried about the heritage businesses – once they’re gone, they’re gone,” Mr Syed Osman said.

Rising rents and businesses changing hands

In the backdrop of the changes is the rising value of shophouses in Kampong Gelam, and demand to buy or rent them – due in part to the area’s unique history and character.

Shophouse sales in the area rose to 22 transactions in 2022 – more than double the 10 the year before – before falling to an average of six transactions a year between 2023 and 2025.

The most expensive sale was $23 million, or $13,821 per sq ft (psf), for a 1,664 sq ft unit in Bali Lane on a 999-year lease in August 2022.

This data includes only transactions for which caveats were lodged. Such caveats help to secure a property during a sale, but are not mandatory, meaning that more transactions could have taken place than were caveated.

Mr Alan Cheong, executive director of research and consultancy at real estate firm Savills Singapore, said foreign interest in buying shophouses has waned since late 2023, after a crackdown on money laundering that has scared off legitimate buyers.

“As a result, the market in 2024 was softer than 2023, and it was even weaker in 2025,” he said.

On April 6, 2026, the Urban Redevelopment Authority (URA) pushed back at claims circulating online that foreigners are purchasing a significant number of shophouses in the area.

Local buyers accounted for around three-quarters of transactions between 2020 and 2025, it said.

Checks by ST showed that 78 per cent of shophouse buyers in District 7 – the Beach Road and Bugis areas, which include Kampong Gelam – were companies, which can be local or foreign entities.

Individual buyers – all either Singaporean or Chinese nationals – accounted for the rest. Chinese buyers accounted for two shophouse sales – one in 2020 and the other in 2023.

Property values have continued to grow despite the softer market. The median psf sale price in Kampong Gelam increased from $3,743 psf in 2020 to $6,805 psf in 2025.

Shophouses all over Singapore have been highly sought after in recent years. Sales transactions for them stayed elevated between 2020 and 2023, with median rents for these properties rising 30 per cent across the island – from $5 psf in 2020 to $6.50 psf in 2025.

In Kampong Gelam, median rents were $4.71 psf in 2020, but went up about 16 per cent each year from 2022 to 2024.

In 2024, the median rent peaked at $6.88 psf, before dipping to $6.19 psf in 2025.

Median rents in busier streets can be much higher. In Haji Lane, a popular tourist destination, median rent stood at $12.39 psf in 2024, before it slid to $9.59 psf in 2025.

Checks on real estate website CommercialGuru on April 8 showed shophouse units in Kampong Gelam listed with asking rents ranging from $4,500 to $35,000 a month.

Mr Iszahar Tambunan, the third-generation owner of nasi padang restaurant Sabar Menanti, said his rent has tripled over the last 10 years.

The shop, which has called Kampong Gelam home since the 1940s, has moved three times over the years, due in part to rent hikes, the former ship broker said.

Several businesses also told ST that a tenant in the area has been aggressively outbidding existing tenants with expiring leases, before subletting the units at much higher rates.

“In November, someone came to my shop pretending to look at art but instead… they kept asking about rent... when my lease is due, how much is my rent,” said Mr Lim Chiao Woon, who runs Mr Lim’s Shop of Visual Treasures, an art gallery in Haji Lane. “I found it very unusual.”

New owners typically charge higher rents as they bought the property at a high price, said property agent Danny Ee, from real estate agency Everton Estate.

He has come across some who seek to rent to businesses that are in line with Kampong Gelam’s heritage.

“But if the unit isn’t rented out for a few months, they would have to take a tenant that can meet the asking rent,” he added.

Higher rents could also be propped up by limits on the number of shophouse units approved for use as restaurants and bars, said real estate agent Daryl Ng from ERA Realty.

He estimated that such units can be rented out for 30 per cent to 50 per cent more than others in the area.

Another issue that has caused some consternation is the management of wakaf properties in the area. A wakaf is an Islamic religious endowment comprising land or assets bequeathed by Muslims for religious or charitable purposes.

In Kampong Gelam, 26 shophouses are on wakaf land and managed by the Islamic Religious Council of Singapore (MUIS).

In February, MUIS responded to public concern over its management of such properties. It defended its practice of charging tenants rent at market rates, saying that by doing so, wakaf properties can keep generating income for the causes they support.

Tourism and changing tastes

At one time, Malaysian tourists would visit Sultan Mosque – a national monument – and spend time in the area, Mr Iszahar said.

These days, the area has become popular with a wider swathe of tourists from various nationalities, and has also become a hot spot for youth, with the retail mix evolving in part to serve them.

“While that brings footfall, it doesn’t always translate into meaningful engagement with the heritage businesses that give the area its identity in the first place,” said Ms Oniatta Effendi, founder of batik retailer Baju by Oniatta and Galeri Tokokita in North Bridge Road.

Ms Aida Suhaimi, who runs Muslim apparel store Deen Dunya, added: “We are left as the only Muslim shop (in Haji Lane). It used to be a nicer area where there were more local shops selling a lot of things, so customers had a variety of things to buy.”

In June 2025, URA banned the setting up of new souvenir shops in Kampong Gelam. It also has restrictions on new bars, pubs, nightclubs, karaoke lounges and Western fast-food restaurants.

But the proliferation of massage and spa establishments in some parts of the district – including in the streets around Sultan Mosque – has also caused unease.

In Pahang Street and parts of North Bridge Road, such establishments account for about 19 per cent of the 37 shops.

“Having these establishments near a mosque, and within a historic quarter, makes most Muslims like me uncomfortable,” said Ms Hidayah Amin, 53, who authored a book on Kampong Gelam’s history.

Her book – Leluhur: Singapore’s Kampong Gelam – shows that a decade ago, smaller businesses selling basketware or traditional attire were already being edged out.

Ms Hidayah, who grew up in Kampong Gelam, believes the retail mix in the district should not be left to market forces, and government intervention should go beyond conserving shophouses.

“When you come to Kampong Gelam now, it doesn’t feel like it’s a Muslim quarter,” she said.

“Yes, you have the mosque, but other than that, the heritage or Malay businesses are not very visible.”

Tradition versus modernity

Leaving Kampong Gelam’s future to the free market could further dilute the heritage district’s cultural character, cautioned Malay/Muslim academics.

“Landlords do not create cultural value. A place’s cultural character is generated by the shops and businesses that keep historical legacies as living culture today,” said Dr Imran Tajudeen, senior lecturer of Malay studies and architecture at the National University of Singapore (NUS).

Should its cultural character fade, the conservation district would lose its reason for physical conservation, he added.

Dr Azhar Ibrahim, a senior lecturer at the NUS Department of Malay Studies, noted that retaining the district’s character is important for Singaporeans and Singapore’s image as a multicultural hub.

“If Kampong Gelam’s character dissipates over time, then we can’t maintain this unique position, we could alienate Singapore from its own roots and history,” he said.

This could remain a challenge. A 2023 study on heritage businesses by the National Heritage Board found that only 46 per cent of respondents regularly purchase from such businesses, possibly due to limited awareness of such offerings.

Efforts have been made to keep the old Kampong Gelam alive, and more could be on the way.

The SG Heritage Business Scheme, set up in March 2025, aims to raise awareness of heritage businesses by helping with branding, marketing and consultancy services.

Of the 42 businesses under the scheme, five are in Kampong Gelam.

The Kampong Gelam Alliance is also planning to meet landlords “in the near future” to open a discussion on rents.

“It is an exploratory meeting, to get to know them more. To get all of them in one space is a challenge as many of them are not local, but we are working on it,” Mr Syed Osman said.

Mr Jihad Suhaimi, executive director of a ground-up community organisation that runs after-school activities for underprivileged youth in the area, sees changes in Kampong Gelam as an opportunity for the next generation.

His organisation, MEMBINA Community, has also been helping heritage businesses with digital marketing to reach new customers and working with others with a stake in the district, such as grassroots organisations in Jalan Besar GRC that Kampong Gelam sits within, the Kampong Gelam Alliance, Aliwal Arts Centre and the Malay Heritage Centre.

For many Malay/Muslim young people, being in Kampong Gelam means being reminded that their identity is not something passive, but something they can actively build on, said Mr Jihad, 29, who runs MEMBINA Community with his wife.

“While there are new spaces and energy, there’s also a growing sense that parts of their cultural roots are fading or becoming less accessible.”

The loss of longstanding establishments reflects this shift, but it also highlights the need for the youth and the community to take a more active role in shaping what Kampong Gelam becomes next, he said.

This could mean leading community sports activities, organising ground-up events and night programmes, and “reactivating spaces” through pop-ups, dialogues and community initiatives that make heritage more engaging for younger generations, he said.

Business owners like Ms Oniatta said they will also continue to adapt – but that doing so is not without cost. “There is effort in constantly recalibrating, in holding on to what matters while trying to remain accessible.”

Preserving Kampong Gelam is about ensuring that as it evolves, it carries meaning, she said, a process that will require intention from all involved – landlords, policymakers, businesses and the people on its streets.