Shophouse transactions hit nearly $2 billion last year, exceeding the combined sales for both 2019 and 2020, as investor interest for defensive assets soared during the Covid-19 pandemic, according to a report by Knight Frank Singapore.

The latest round of property cooling measures is likely to lend more cachet to this asset class as commercially zoned shophouses are exempt from additional buyer’s stamp duty and seller’s stamp duty, said market observers. Foreigners are allowed to buy fully zoned commercial shophouses that are approved for commercial use.

Steady gentrification in shophouse districts will also continue to fuel demand, and it is expected that the total sales value for the shophouse market could reach $2 billion in 2022, said Ms Mary Sai, executive director of capital markets for Knight Frank Singapore.

According to the real estate consultancy, shophouse transactions here reached an all-time high of $1.9 billion in 2021, compared with $915.9 million in 2019 and $912.7 million in 2020.

Read more at: https://www.straitstimes.com/business/property/sales-of-shophouses-soared-to-record-19-billion-last-year