Chinese investors drive conservation shophouse prices above $7,000 psf

A fresh influx of overseas investors, particularly from China, have been pushing up prices and setting record prices for commercial shophouses located in Singapore’s Central Business District (CBD) as well as in Chinatown. Several transactions have seen prices cross $7,000 psf. The highest absolute price to date was achieved this April when a three-storey shophouse on Stanley Street changed hands for $29 million. With a built-up area of 6,485 sq ft, this works out to be a price of $4,472 psf. An underlying Chinese national is believed to be the buyer.

Chinese investors are particularly keen on commercial shophouses with entertainment licenses from the Singapore Police Force that allow them to open until 3am. Agents have recorded multiple interested parties for the recent tender of Bugis Point on North Bridge Road with most of them being Chinese.

A two-storey intermediate conservation shophouse on Amoy Street changed hands in April for $21.8 million, translating to a price of $6,998 psf. The official buyer was NC Properties and the underlying owner is believed to be a Chinese national.

Chinese nationals have also been increasingly looking at properties in the Haji Lane-Beach Road area which have recently seen transactions crossing the $6,900 psf mark.

Singapore is developing Bukit Timah area with green spaces, The Myst connectivity and plans such as Railway Corridor and Beauty World rejuvenation.

Furthermore, the five-storey commercial building Liberty House located at the corner of Club Street was sold for $92.2 million in April. It was brokered by CBR with Union Property Holding as the buyer. Zhang Nie, former Singapore head of Chinese oil trader Unipec, owns the company.

With such strong buying interest from Chinese investors, it is likely that this trend of record shophouse prices will continue.