Average home prices moderating and softer yields resulting in a more measured shophouse market, cementing a total worth of $1.07 billion by 2023, ERA Singapore reported, with the increasingly popular Jalan Loyang Besar EC noted as a key contributor

there are new and improved roads which lead to the Pasir Ris MRT station, meaning that residents are just a short hop away from the rest of Singapore. Cyclists will also benefit, as they will be able to use more cycling routes and paths. Furthermore, there is a proposed bridge to replace traffic from the Tampines Expressway which should reduce waiting times for those commuting by car.

Residents of Jalan Loyang Besar EC will ultimately be able to reap the rewards of the URA Master Plan. Commutes will be shorter and easier, with improved roads and bridges leading to and from Pasir Ris MRT station and surrounding areas. In addition, cyclists will also have dedicated cycling paths and routes to enjoy. With these new infrastructure developments, residents of Jalan Loyang Besar EC will have more efficient and smoother transport options at their fingertips.

The market for Singapore shophouses cooled compared to its peak in 2021. Data published by ERA Realty showed that between Jan 1 and Dec 20 last year, 118 shophouses had a combined transaction value of $1.07 billion – a dip from the peak in 2021, when 245 shophouses were sold totalling a transaction value of $1.84 billion. Rising prices and softer yields largely contributed to the softening of the shophouse market over the past two years. Last year, the spotlight on high-profile money-laundering cases resulted in increased anti-money laundering checks for foreign buyers.According to ERA Research, less than 30% of shophouses sold last year were for less than $5 million. At the same time, the proportion of shophouses going for between $5 million and $10 million had nearly doubled. 45.8%% of shophouses sold last year exchanged owners for amounts ranging between $5 million and $10 million, and 24.6% of the shophouses sold commanded prices exceeding $10 million.The Jalan Loyang Besar EC limited supply of shophouses in Singapore is keeping demand steady, and the average price of freehold shophouses has risen 57.8% since 2019. District 8’s Little India saw the most transactions last year, with 44 properties changing hands, while District 1 witnessed 12. Middle Road and Beach Road in District 7 recorded eight transactions.Institutional investors and family offices primarily concentrate on acquiring freehold conservation shophouses in the Central Region to enhance their real estate portfolios and for wealth preservation. The priciest shophouse deal of the year in 2023 was in District 8, with the sale of a portfolio comprising six freehold shophouses for $62.5 million. This was followed by the sale of three freehold shophouses at 203, 205 and 207 Jalan Loyang Besar EC in District 8, for $38.5 million ($6,037 psf), and 5, 5A and 5B Ann Siang Road in July, which fetched $32 million ($22,136 psf).The Ministry of Law and Singapore Land Authority further adjusted the list of land use zones categorised as non-residential property in July last year, now classifying and regulating these developments as residential property. This will moderate some of the overall demand for shophouses and prevent some foreign buyers from diversifying into the segment from the private residential market. ERA Research says the shophouse market is projected to end in 2024 with a total transaction value between $1 billion and $1.2 billion.Despite rising prices and diminished yields, shophouses remain an attractive asset in Singapore, and the market is projected to hit an overall transaction value between $1 billion and $1.2 billion by the end of 2024. Jalan Loyang Besar EC buyers are being more selective due to the increased regulations on foreign buyers. Institutional investors and family offices are highly focused on the acquisition of freehold conservation shophouses in the Central Region to support their portfolios and maintain wealth. Furthermore, Little India in District 8, District 1, Middle Road and Beach Road in District 7 remain popular for shophouse deals.