Sale of shophouses tied to money laundering probe revives market

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pstrongThe shophouse market saw a 31.3% QoQ increase in sales./strong/p pThe Singapore Police Force's initiation of the process to sell shophouses linked to the money laundering probe may have revived market interest./p p"The clarity over the process and prices brought buyers back to the market.

The Singapore Police Force's initiation of the process to sell shophouses linked to the money laundering probe may have revived market interest.and that injected confidence in the shophouse market," Huttons said in a report.

In 1Q24, the shophouse market saw a 31.3% QoQ increase in sales. Year-on-year, however, sales were 34.4% lower.Shophouses that exchanged hands in 1Q24 were sold at an average price of $8.6m, close to the pre-money laundering probe price level of around $9.0m, according to Huttons. District 8 was the most popular market, accounting for almost half of the transactions. The quantum of deals in the market ranged from $4.9m to $14.4m."Buyers paid between $9.5 and $19.0 million for the shophouses in Districts 1 and 2 in the first quarter of 2024," Huttons reported.District 1 hosted the largest 1Q24 transaction, a freehold shophouse on Pagoda Street sold for $19.0m.In the coming quarters, Huttons believes the shophouse market will see steady investor interest.

"The rarity of shophouses, the lower barrier to entry for foreign investors compared to the residential market and the potential for capital appreciation will support prices in the market," Huttons said....there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

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