Shophouse sales volume dips 49.3% q-o-q in 3Q2022: Huttons
By Hailey Yu
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - A total of 34 shophouses were transacted in 3Q2022, declining by 49.3% q-o-q and 54% y-o-y, according to a Huttons report released on Oct 13.
This brings the total shophouse sales volume to 153 for January to September this year, compared to 194 for the same period last year.
Total shophouse transaction value totalled $330.1 million in 3Q2022, averaging $9.7 million per shophouse.
“Despite a lower shophouse sales volume in 3Q2022, the average transacted prices for shophouse are 31.6% higher than the previous quarter,” says Lee Sze Teck, senior director of research at Huttons Asia.
Interest in freehold shophouses held up better compared to 99-year and 999-year leasehold shophouses in 3Q2022, he observes. The Rochor planning area spanning Little India and Jalan Besar was the most popular area among investors, he adds.
Hafary Holdings acquired 161 Lavender Street for $71.3 million in July for its new flagship store, while 8M Real Estate acquired a block of five adjoining conserved shophouses along Jalan Besar in September.
Lee expects interest in shophouses to be sustained given no new supply in the market. Family offices are looking to the shophouse asset class for wealth preservation, and investors are shifting their focus to the Joo Chiat-Kampong Glam-Jalan Besar area to seek attractively priced shophouses to enhance the tenant mix and rental returns.
Check out the latest listings near Lavender Street, Jalan Besar
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