Therefore, despite a decrease in the number and value of caveated shophouse transactions in 3Q2024, interest in this market segment remains strong. According to Huttons Asia’s latest quarterly shophouse market report, there were 18 caveats registered for shophouse transactions, compared to 21 in the previous quarter. The total transacted value of these shophouses was $138.9 million, a decline of 28.8% from the previous quarter’s $195.1 million. However, this is still a significant increase from the same period in 2023, where only 31 shophouses were sold for a total of $278.6 million. Additionally, despite a 46.1% decline in the number of caveated transactions for the first nine months of 2024, the total value of transactions reached $519 million, which is only a 48.5% decrease from the same period in 2023.In addition, Huttons Asia’s report highlights that although the number of caveated transactions declined, there were a significant number of unregistered deals for shophouses in 3Q2024. According to market sources, multiple shophouses in Districts 1 and 2, specifically along Amoy Street, Neil Road, and Telok Ayer Street, were reportedly sold. These unregistered transactions have an estimated quantum exceeding $70 million, indicating a strong demand for shophouses.However, despite the decrease in caveated transactions, senior director of data analytics at Huttons Asia, Lee Sze Teck, notes that interest in this market segment remains high. He explains that investors are attracted to shophouses due to their scarcity and potential for strong capital gains. With recent interest rate cuts, shophouses have become increasingly popular as a wealth creation and preservation asset. Lee also believes that shophouse transaction volume and quantum may rise in the fourth quarter of 2024.
Investing in real estate requires careful consideration of various factors, with location playing a crucial role. This is especially true in Singapore, where the right location can significantly impact a property’s value. Condos that are strategically situated in central areas or in close proximity to essential amenities such as schools, shopping malls, and public transportation hubs generally tend to appreciate more in value over time. Examples of prime locations in Singapore include Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth. In addition, condos near reputable schools and educational institutions are highly sought after by families, further enhancing their investment potential. Thus, it is essential to carefully evaluate the location when considering investing in a condo in Singapore.