With the extensive building of modern structures in Singapore, some of the older buildings had been neglected until the last ten years. Suddenly people have discovered the charm, colour and character of Singapore Shophouses and their capital appreciation has skyrocketed. In a bid to create gentrified areas such as London’s Mayfair, many businesses have relocated to these areas, renovating the buildings to bring them back to life. Shophouses can be found in the Little India/Jalan Besar area, particularly along Sam Leong Road, plus along Petain Road, Stanley Street and the Telok Ayer-Amoy Street area.

The Urban Redevelopment Authority report there are about 8700 Shophouse buildings in Singapore gazetted as Conservation Properties.

According to Asia One Shophouse sales in 2015 reached S$655.6 million, up 8 per cent from S$606.2 million in the previous year. This is despite fewer transactions, which suggests bigger-ticket shophouses changed hands in 2015.

In June this year, a record number of parties entered a bidding war for a freehold Jalan Besar shophouse in District 7. According to The Edge Property, it sold at an Edmund Tie & Co auction on June 28 for $5.23 million, with 24 bids and counter bids, the most for any single submission at a June property auction. The two-storey shophouse is located in the Jalan Besar Conservation Area, with a land area of 1,529 sq ft and a gross floor area of 2,745 sq ft, with each storey housing retail space. The property, sold with vacant possession, is close to the future Bendemeer MRT Station on the Downtown Line, and City Square Mall. It is also close to Broadway Food Centre and the Jalan Besar Sports Centre.

Jalan Besar shophouse in District 7 sold for $5.23million

Values of shophouses in the Central Business District have jumped over the past two years, buoyed by their scarcity and demand from funds and foreigners. According to Singapore Home & Décor the priciest deal in 2016 on a per square foot (psf) basis, is a shophouse in Ann Siang Road which sold for $10.8 million, or $3,750 psf in terms of gross floor area (GFA). District 1 and 2 shophouse prices went from $1,500 to $1,800 psf in 2012 to $1,800 to $2,300 psf in 2013 and 2014. Now, prices of 99-year leasehold shophouses in Chinatown are near $3,000 psf, said Mr Richard Tan from PropNex.

Shophouse in Ann Siang Road which sold for $10.8 million

Although capital values have risen, rents have not increased in proportion, said Mr Simon Monteiro from Savills, who operates a website dedicated to Singapore Shophouses. "Eight years ago, we were seeing 6 per cent rental yields. Today, yields are 3 per cent or even less than that. They are playing with capital appreciation".

The history of the Singapore Shophouse
The typical Singapore Shophouse is a two or three-storey building with a commercial shop on the ground floor and living accommodation above. The ground floor sits back from the road, while an overhanging veranda is supported by a brace of columns. 

Shophouses were designed with symmetry and orientation in mind, and usually built along the north-south axis, fitting with the ancient Chinese belief of universal balance. The main hall, considered the most important part of the house, is located at the back (north) of the house while facing the entrance (south). The front of the house was used as a courtyard to receive and entertain guests. Singapore’s founder, Sir Stamford Raffles conceived streets with uniform houses, each with their own verandah, creating a continuous sheltered, covered walkway on each side of the street, known as the ‘five-foot way’.

The oldest Shophouses date back around 100 years in the Telok Ayer-Amoy Street area. The fusion of architectural styles was initiated by local architects who created a tropical version of the Palladian style which was sweeping through Europe at the time. 

The features which echo this Palladian style include the wide verandahs and louvred windows, well suited for Singapore’s climate to ward off glare and rain. Their façades are often decorated with simple Greek Doric pilasters and architraves, and some also have ornate Roman Corinthian capitals.

Chinese architectural features are also adapted in the style with granite corbels, Chinese tiled roofs and friezes adorned with coloured ceramic decorations of peacocks and flowers, plus rounded ends of the gable walls with an anchor symbol. In addition, Shophouses often include Malay timber fretwork, French windows and Portuguese shutters.

Shophouses for sale

Mr Simon Monteiro from Savills has a range of Curated Shophouse offerings for sale like this one here in Joo Chiat Heritage Neighbourhood. Contact him via the contact section below

For sale by ERA Realty Network Pte Ltd,

East Coast Road, S428773 Singapore Central Region 2 Storey, 3 bathroom Conservation Freehold Commercial Shop-house:  S$8,849,530 

Contact David Pa for more infomation

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