While the broader commercial shophouse market faced a quiet end to 2025, Little India (District 8) reversed the trend, emerging as the top-performing district in the final quarter.
According to the latest data from PropNex, Little India led the market in the final quarter of last year with seven transactions totalling S$46.3 million.
This surge came even as the overall market felt a “seasonal lull,” with total island-wide sales dropping to 22 units, a 21.4% decline from the previous quarter.
As these numbers are based on the caveats lodged, there may be some transactions which have not been lodged, bringing the actual sales figures higher for the last quarter.
Little India’s strong finish capped off a dominant year for the heritage district. There were a total of 24 shophouses with a total value of over S$183 million that were sold for the full year of 2025. The district accounted for more than 25 per cent of Singapore’s total shophouse sales value for the year.
Despite the success in Little India, the wider shophouse market faced significant headwinds in 2025. Total annual transaction value fell to S$623.2 million, marking the lowest level in a decade. In 2014, 106 transactions with a total value of S$585 million were recorded.
The slowdown was largely attributed to a sluggish first half, particularly in the second quarter, when global market confidence was shaken by sweeping US trade tariffs. Although momentum improved in the second half of the year, it was not enough to surpass the S$699 million recorded in 2024.
Prices of shophouses have generally increased in the last year. Average prices based on land area per square foot in Districts 14 and 15 which covers the heritage districts of Geylang, Katong, and Joo Chiat rose by 8.5 per cent year-on-year to S$3,817 psf on land area in 2025, while shophouse prices in Districts 7 and 8 (Little India, Bugis, and Bencoolen) similarly grew 8.2 per cent year-on-year (YOY) to S$5,861 psf on land area.
Price growth in the downtown areas of Districts 1 and 2 was more modest, with average prices edging up by 1.3 per cent YOY to S$8,850 psf on land area.
Market observers remain optimistic about a turnaround in 2026. As global economic instability persists, Singapore’s commercial shophouses are increasingly viewed as defensive, safe-haven assets.
“The scarcity and heritage value of these properties help support prices over the long term,” the PropNex report noted, suggesting that family offices and institutional investors will continue to keep shophouses on their radar.
Supported by a positive economic outlook and Singapore’s reputation for stability, the market is expected to see a recovery in transaction volumes as investors seek out well-priced, resilient opportunities in the coming months.
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