Considering buying shophouse in Singapore? This article delves into the question of whether buying a shophouse is truly worth it. With their unique blend of historical charm and investment potential, shophouses have long captured the imagination of real estate enthusiasts.
We’ll explore the factors to consider, market trends, and the potential rewards and challenges of owning a shophouse in Singapore. Whether you’re a seasoned investor or a curious individual, join us as we delve into the fascinating world of shophouse ownership in the Lion City.
Singapore’s shophouses are gaining popularity among investors as they offer a unique combination of heritage, location, and financial flexibility. With only around 6,500 conserved shophouses in the city-state, these well-preserved architectural gems provide an attractive alternative to conventional property investments. But buying shophouse in Singapore requires some careful considerations because they are very high priced in today’s environment where money is chasing for good yields.
One of the key attractions of shophouses is their mixed-use flexibility, allowing for both residential and commercial purposes. This means that investors have a wider range of potential tenants and customers, making them a more lucrative and versatile investment option compared to landed properties.
The unique character, style, and heritage of shophouses also contribute to their growing popularity. Each shophouse cluster has its own distinct identity, which attracts foot traffic and contributes to a vibrant street life not found in cookie-cutter commercial rental spaces. As Singapore experiences a cultural renaissance, the appreciation for these heritage properties is expected to increase, further boosting their investment potential.
In terms of financial performance, shophouses have outperformed private condominiums and commercial properties in the past decade, making them a solid choice for capital preservation. Additionally, they are foreigner-friendly, and the Additional Buyer’s Stamp Duty (ABSD) does not apply to full commercial shophouses, providing greater financial flexibility for both local and foreign investors. This is especially so in the April 2023 60% increase in ABSD for foreigners that sent many foreigners from residential market to commercial market.
And also in Singapore, foreigners are NOT allowed to buy landed properties so that is also a consideration for them to move to investing in commercial properties.
Buying shophouse in Singapore extends beyond financial gains; it holds the power to contribute to the preservation of Singapore’s architectural heritage. In a time when millennials are actively pursuing distinctive living experiences and yearning for a deeper connection to the city’s history, shophouses have emerged as the embodiment of the new Singaporean Dream House. These iconic structures, with their intricate designs and rich cultural significance, evoke a sense of nostalgia while offering a unique and authentic living environment.
Unlike modern cookie-cutter residences, shophouses embody the essence of Singapore’s past, reflecting a blend of Chinese, Malay, and European architectural styles. Their ornate facades, vibrant colors, and traditional motifs tell stories of a bygone era. By investing in a shophouse, you become a custodian of this architectural legacy, playing a vital role in ensuring the preservation and continuation of Singapore’s cultural heritage for future generations.
Shophouses that are residential are also becoming popular
Moreover, shophouses have become increasingly sought after by millennials seeking a departure from conventional housing options. The younger generation is drawn to the charm, character, and individuality that shophouses exude. These properties offer a break from the monotony of modern apartments, providing a canvas for creative interior design and a platform for expressing personal style. From trendy cafes and boutique stores to cozy residences, shophouses offer versatile spaces that can be customized to suit various lifestyles and businesses.
The allure of owning a shophouse goes beyond its aesthetic appeal. These properties present a unique investment opportunity with the potential for long-term financial rewards. With the increasing scarcity of shophouses due to urban development and preservation efforts, their value has steadily appreciated over the years. This makes them not only a home but also a sound investment choice.
Buying shophouse in Singapore requires careful consideration and research. Even finding a good property (regardless of shophouse, or condos, or landed properties or even HDB flats) require some good knowledge. Factors such as location, historical significance, and potential for renovation and restoration must be evaluated.
Engaging with architectural experts, real estate professionals (I recommend Calin Chong Property as she has good knowledge in commercial and industrial properties, and heritage organizations can provide valuable guidance throughout the process. By delving into the world of shophouse ownership, you become part of a community that appreciates and preserves Singapore’s architectural heritage while reaping the benefits of a unique and fulfilling investment.
Conclusion on Buying shophouse in Singapore
In conclusion, investing in a shophouse offers more than just financial rewards; it serves as a testament to Singapore’s rich architectural heritage. As millennials increasingly seek distinctive living experiences intertwined with a connection to the city’s history, shophouses have emerged as the embodiment of the new Singaporean Dream House.
By becoming a custodian of these iconic structures, you contribute to the preservation of Singapore’s cultural legacy while enjoying the charm, individuality, and potential financial gains that shophouses offer. So, if you are ready to embrace the allure of these historical gems and embark on a journey of preserving the past while securing your future, investing in a shophouse may just be the perfect choice for you.
