Prices of commercial shophouses projected to rise due to higher demand, limited supply: Analysts

STRONG INVESTOR INTEREST

Six shophouses were sold for more than S$20 million in the first half of the year.

Among them was Liberty House at 51 Club Street, a 28,876 sq ft five-storey commercial building. It sold for S$92.2 million in April, making it the highest transacted shophouse this year.

Located in the same area, a smaller 1,259 sq ft shophouse at 14 Ann Siang Road was put up for sale last week at S$22 million.

The property’s managing agent Richard Tan said there has been strong interest from local and foreign investors.

“Over the last one week, I had at least five inquiries. I had two viewings – one local and one from a foreigner,” said Mr Tan, who is the founder of realtor PropNex Shophouses Elites.

Overseas investors make up about a third of shophouse sales in Singapore.

Market watchers said they are mainly from China, Indonesia and Malaysia.

Analysts said this pool of investors is expected to increase following the latest property curbs, which is driving foreign interest from residential properties to the commercial shophouse market.