Why should you invest in a shophouse?

Shophouses—a historical source of delight and nostalgia—are a prevalent building type in Singapore’s architectural and built heritage. Shophouses first appeared when the Town Plan of Sir Stamford Raffles dictated the subdivision of the land into smaller regular lots. They were narrow, long terrace houses with varied facades, a sheltered ‘five-foot’ pedestrian way at the front, creating an attractive unified streetscape. These buildings were generally 2 to 3-storeys high, built in contiguous blocks with common party walls.

Constructed between the 1840s and the 1960s by Singapore’s pioneers, these shophouses formed the majority of the pre-World War 2 urban fabric of the old city centre showcasing the many cultural influences of the early builders. The shophouse moved through many different styles, from the Early and Late Shophouse to the Art Deco and Modern Shophouse. It remains a quintessential architectural icon and have been gazetted as conservation buildings in Singapores evolving cityscape. With the conservation efforts of owners, many of the shophouses have been rejuvenated today and still widely used for residential and commercial purposes.  

Owing to their heritage charm and iconic architectural façade, shophouses have been highly sought-after by many investors as a prized trophy asset. Apart from boutique investors, investment interest has also grown among property funds and investment companies exploring more alternative asset classes. We will delve further into the specifics of this unique property class and why interest have gained traction recently.