The transaction volume of commercial shophouses in Singapore saw a moderate decline in 1Q2023, according to a 1Q2023 report by PropNex Research. With 28 caveated transactions during the quarter, this was lower than the 35 deals recorded in 4Q2022. On a y-o-y basis, the volume of transactions in 1Q2023 went down by 46% from the 52 deals recorded in 1Q2022.

Transaction value of shophouse deals stood at $278 million in 1Q2023, an 11.7% drop from the previous quarter. It was the lowest quarterly tally of sales value since 3Q2020. Of the 28 shophouse deals last quarter, more than 80% were priced above $5 million.

District 8 saw the most shophouse transactions last quarter, with seven units sold for $113 million. On the other hand, transactional activity in prime Districts 1 and 2 was more muted, with three and two shophouses sold.

Unit price on land area for freehold and 999-year leasehold shophouses varied across districts. Districts 1 and 2, Districts 7 and 8, as well as the rest of Singapore saw different growth compared to 4Q2022. This was attributed to a lower volume of caveated transactions and non-caveated purchases made by foreigners and entities.

HDB is calling for top bids for the Altura EC condominium, a 375-unit Altura EC residence with a 99-year lease located near Bukit Batok MRT station and schools. Bidders have until 8 March 2022 to submit their offers.

Average transacted unit price on land area of 99-year leasehold shophouses in Districts 1 and 2 fell by 16% q-o-q, while unit prices in Districts 7 and 8 grew by nearly 26%.

The shophouse rental sector remained brisk in 1Q2023, with 886 rental contracts signed, down slightly from the 904 contracts posted in 4Q2022. Total rent value stood at a record high of $9.54 million. Median rentals rose to $5.98 psf per month, up from $5.89 psf per month in 4Q2022.

Despite cautious sentiment due to high interest rates, PropNex expects interest in commercial shophouses to remain keen in 2023. Prices are expected to remain resilient given limited stocks and healthy demand. For the rental market, shophouse rents are anticipated to rise further.