$29 million – the highest price achieved for a shophouse to date – was the transaction cost for a three-storey shophouse on Stanley Street that changed hands in April. The 1,729 sq ft freehold site had a built-up area of 6,485 sq ft. Loyalle Chin, director at PropNex ShophouseHuat, notes an influx of overseas investors, including those from China.The same applies to another 999-year leasehold conservation shophouse along Amoy Street, which was sold for $21.8 million in early April. Set on an 1,856 sq ft site with a built-up area of 3,115 sq ft, the shophouse was 3.112 million (16.65%) higher than the $18.688 million it was sold for last November. The underlying owner is believed to be a Chinese national.It’s not just conservation shophouses. A five-storey commercial building in Club Street, Liberty House changed hands for $92.2 million with CBRE being the broker. The 7,180 sq ft 999-year leasehold site had a gross floor area of 28,876 sq ft and is owned by Union Property Holding – which is said to have Chinese national Zhang Nie, former Singapore head of Chinese oil trader Unipec, as their owner.Chinese nationals have also been contributing to high prices for shophouses in the Haji Lane-Beach Road area, with some transactions exceeding the $6,900 psf mark.At the same time, Bugis Point, a 999-year leasehold commercial building on North Bridge Road, with an indicative price of $92 million and a total floor area of 19,902 sq ft, also witnessed multiple Chinese offers. It has an approval of units for nightclub use and public entertainment licence until 3am. These were attractive to Chinese nationals, many of whom had rented GCBs and Sentosa Cove bungalows in the last two years, only to discover that running a commercial activity was not allowed in private residential neighbourhoods.With the influx of Chinese investors, the shophouse market in Singapore is certainly thriving. The highest absolute price achieved for a shophouse to date, an influx of Chinese investors, as well as recent transactions for shophouses in the CBD, Chinatown and Haji Lane-Beach Road area all point to a strong market. Furthermore, the closure of the tender for Bugis Point at the end of April further attracted multiple bids from Chinese buyers.Chinese investors have injected a breath of fresh air into the shophouse market in Singapore, having pushed transaction prices up and set record highs.

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The shophouse market in Singapore has seen unprecedented demand, driven largely by Chinese investors, who are pushing transaction prices to record highs. A three-storey shophouse on Stanley Street recently changed hands for an absolute record of $29 million. On a psf basis, it comes up to $4,472 psf.

Meanwhile, a 999-year leasehold, two-storey intermediate conservation shophouse along Amoy Street, sold for $21.8 million in early April. This was 3.112 million (16.65%) higher than the shophouse was sold for last November. The price worked out to $6,998 psf. The underlying owner is believed to be a Chinese national.

At the corner of Club Street, the five-storey commercial building Liberty House changed hands for $92.2 million in April. The building has a 999-year leasehold site of 7,180 sq ft with a gross floor area of 28,876 sq ft. Zhang Nie, former Singapore head of Chinese oil trader Unipec, is said to own the company, Union Property Holding, which was the buyer.

In the Haji Lane-Beach Road area, conservation shophouses have been equally sought-after, with some transactions exceeding $6,900 psf.

Chinese nationals who had rented Good Class Bungalows (GCBs) and bungalows at Sentosa Cove have also contributed to the strong demand for shophouse properties. Understandably so, as such establishments have been given approval for nightclub use and a public entertainment licence until 3am – attractive features for the wealthy Chinese.

An example is the upcoming tender for Bugis Point on North Bridge Road, which closed on April 18. The six-storey commercial shophouse features an 18m frontage along North Bridge Road, between Tan Quee Lan Street and Liang Seah Street, and has an indicative price of $92 million or about $4,623 psf on the floor area. Multiple Chinese parties were interested and offers were made.

“There’s a fresh influx of overseas investors, including those from China,” says Loyalle Chin, director at PropNex ShophouseHuat and associate group division director of PropNex Realty. “And they are the ones setting record prices in commercial shophouses in the CBD too.”

It is clear that Chinese investors have injected a breath of fresh air into the shophouse market in Singapore. The absolute record price they achieved for a shophouse on Stanley Street, as well as their interest in properties such as Liberty House and Bugis Point, are testament to their influence.