Shophouses increasingly popular among investors

Aside from being architectural landmarks, shophouses are now considered investments which can yields big gains.

According to The Straits Times, prices for coveted shophouses have been increasing in recent years and investors in such properties have made huge gains.

The cooling measures targeted at the residential sector have driven a throng of local and foreign investors to other investment alternatives, including shophouses, said consultancy firm CBRE.

Around 292 shophouses were sold last year for S$1.13 billion, slightly below the S$1.17 billion in 2010 and almost double the S$563 million in 2009.

Two in every three units sold were transacted for between S$1.7 million and S$5.5 million, with the larger ones sold for between S$10 million and S$12.5 million each.

The price of the properties has also increased sharply. CBRE said that in terms of land area, average psf prices increased to S$1,867 last year, up 21 percent from S$1,547 in 2010.

"What's more surprising is that the median price for last year was 74 percent higher than that in 2007, when Singapore's overall real estate market was at its peak," said Petra Blazkova, Head of Research for Singapore and South-east Asia at CBRE.

She noted that the increase is "a clear indication of a structural change in investors' appetite for shophouses."

Related Stories:

CMA named Most Influential Developer in China

World Class Land unveils new East Village project

Tai Keng Court sold for S$161m

  • COMMENT: Xenophobia rears its ugly head in Singapore once more Sat, Apr 19, 2014
    COMMENT: Xenophobia rears its ugly head in Singapore once more

    Kirsten Han is a Singaporean blogger, journalist and filmmaker. She is also involved in the We Believe in Second Chances campaign for the abolishment of the death penalty. A social media junkie, she tweets at @kixes. The views expressed are … Continue reading →

  • Driving a $900,000 Porsche 918 Spyder to the future Sat, Apr 19, 2014
    Driving a $900,000 Porsche 918 Spyder to the future

    It’s more than just its inherent speed, or the whooshing noise that fills the cabin like a school choir jamming with James Hetfield. It’s what it represents in an industry full of skeptics. It’s a portal into the future – a time capsule left by some mad scientist born decades too soon. It’s something that shouldn’t exist. And yet it does.

  • COMMENT: Xenophobia rears its ugly head in Singapore once more
    COMMENT: Xenophobia rears its ugly head in Singapore once more

    Kirsten Han is a Singaporean blogger, journalist and filmmaker. She is also involved in the We Believe in Second Chances campaign for the abolishment of the death penalty. A social media junkie, she tweets at @kixes. The views expressed are … Continue reading →

  • 5 Unanswered Questions About Jesus
    5 Unanswered Questions About Jesus

    As Christians worldwide gather for Easter to celebrate their belief in the death and rebirth of Jesus, researchers continue to delve into the mysteries that surround the man. The following are five questions about Jesus that, for now, at least, remain unanswered. In 2008, astronomer Dave Reneke argued that the Star of Bethlehem (a celestial event long associated with Jesus' birth) may have been Venus and Jupiter coming together to form a bright light in the sky. Other researchers have claimed that a similar conjunction between Saturn and Jupiter occurred in October of 7 B.C. Still others have claimed that Jesus was born in the spring, based on stories about shepherds watching over their flocks in fields on the night of Jesus' birth — something they would have done in the spring, not the winter.