The ornate and colorful shophouses that line the streets of Singapore’s historic neighborhoods are not the first image that comes to mind when thinking of the city-state. However, these colonial-era buildings, some dating back to the 1840s, have become highly sought-after assets, with prices reaching tens of millions of dollars despite Singapore’s limited land and soaring public housing costs.
Shophouses, protected under a government conservation program, have attracted the attention of affluent investors. High-profile buyers reportedly include Jack Ma’s wife, Hong Kong superstar Jackie Chan, and Spanish tycoon Ricardo Portabella Peralta. Recently, Bridgewater founder Ray Dalio was also identified as a buyer of two shophouses on Singapore’s Club Street, though this has not been independently verified by CNBC.
According to a report by property consultancy Knight Frank, the sales volume of shophouses in the first quarter of the year increased by 52.2% from the previous quarter, totaling S$169.1 million (US$125 million). This surge is largely driven by interest from high-net-worth individuals.
The most expensive commercial shophouses, located on Telok Ayer, Boat Quay, and Stanley Street, can command prices exceeding S$5,000 (US$3,700) per square foot, which is double the cost of retail space on Manhattan’s Upper Fifth Avenue, the world’s priciest retail rental location. One of the largest deals last year saw a Chinese investor purchasing six adjoining conservation shophouses for S$80 million.
Real estate experts note that these shophouses are increasingly viewed as alternative assets or collectible items, particularly due to their scarcity—only around 6,500 are gazetted as conservation buildings. These properties offer flexibility in usage, ranging from food and beverage outlets to boutique retail stores and family offices.
The appeal of shophouses grew further after the Singaporean government introduced property cooling measures in April last year, which included additional levies on locals purchasing second homes and duties on foreigners buying residential property. As shophouses are classified mainly as commercial properties, they are exempt from these higher fees.
Currently, wealthy local individuals and corporate entities make up the largest proportion of buyers, as shophouses are increasingly viewed as a safe haven for wealth preservation. These ultra-high-net-worth individuals, typically with a net worth of at least $30 million, are drawn to conservation assets in Asia-Pacific as a secure investment.
