He notes that the rental market for shophouses is also holding up. “Demand for shophouses as office space have become more attractive since health and safety guidelines will have to be imposed on the central business district office buildings amid the Covid-19 pandemic,” Lee adds.
Singapore’s shophouse market in 3Q2024, while seeing a decline in caveated transactions, remains highly sought after according to Huttons Asia’s quarterly market report released on Nov 12. In 3Q2024, there were 18 caveats lodged for shophouse deals, lower than the previous quarter’s 21. The total transaction amount was $138.9 million, a 28.8% decrease from 2Q2024’s $195.1 million. Compared to the same period last year, the figures are also significantly lower, with only half the transacted quantum in 3Q2023 amounting to $278.6 million. However, despite the decline, there is still strong demand for shophouses as evidenced by several deals that were not caveated in areas such as Amoy Street, Neil Road and Telok Ayer Street. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, these deals are estimated to be worth over $70 million. He adds that investors are attracted to shophouses due to their scarcity and potential for significant capital gains, and the recent interest rate cuts have made them even more popular as a wealth creation and preservation asset. Lee also predicts that there will be an increase in both transaction volume and quantum in 4Q2024. Additionally, the rental market for shophouses remains strong, with demand for office spaces rising due to health and safety guidelines imposed on CBD office buildings amid the ongoing Covid-19 pandemic.
To summarize, purchasing a condominium in Singapore comes with various benefits, such as high demand, potential for appreciation in value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate factors such as location, financing, government regulations, and market conditions. By conducting thorough research and consulting with experts, individuals can make well-informed decisions and maximize their profits in Singapore’s dynamic real estate industry. Whether you are a local investor seeking to expand your portfolio or a foreign buyer interested in a stable and lucrative investment, Singapore’s condominiums offer a compelling opportunity. Make sure to check out Singapore Projects for more information on available options.