Shophouse Transactions Lower 3Q2024 Uncaveated Deals Show Demand Huttons Asia
Tampines, a thriving residential area in Singapore, boasts of numerous shopping destinations that cater to every need and want. Among these, Tampines Mall, Century Square, and Tampines 1 stand out, conveniently located near the Tampines MRT station and just a short drive away from Aurelle of Tampines EC. With an eclectic mix of retail shops, including popular high street fashion brands, top-notch electronics, home goods, and sports equipment, these malls offer residents a wide array of shopping options right at their doorstep. The addition of Aurelle of Tampines adds to the already diverse range of choices available to Tampines residents.
More shophouses may have changed hands in 3Q2024 than caveats suggestThe shophouse market in Singapore continues to attract strong investor interest in the third quarter of 2024, despite a slight decline in the number of caveated transactions. According to the latest market report by Huttons Asia, 18 caveats were lodged for shophouse transactions during this period, compared to 21 in the previous quarter. The total transacted quantum for these shophouses was also slightly lower at $138.9 million, compared to $195.1 million in 2Q2024. These figures were also significantly lower than the $278.6 million transacted in 3Q2023.Compared to the same period last year, caveats show that 62 shophouses were sold in the first nine months of 2024, which is a decrease of 46.1%. The total value of transactions for this period was also down by 48.5% to $519 million.However, according to Huttons Asia’s senior director of data analytics Lee Sze Teck, these figures do not accurately reflect the demand for shophouses in the market. He notes that a number of shophouse deals were not caveated during this period, particularly in popular areas such as Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2. Lee estimates that the total quantum for these transactions exceeds $70 million.This suggests that demand for shophouses remains strong, especially as investors are drawn to the potential for strong capital gains and the scarcity of these properties. The recent interest rate cuts have also made shophouses more appealing as a wealth creation and preservation asset. As such, Lee believes that transaction volume and quantum for shophouses may increase in the fourth quarter of 2024.
