Shophouse
A rare piece of
Singapore’s colonial history
A diminishing asset from the early 1800s and to mid-1900s, many of these charming heritage buildings were flattened to make way for newer developments. However, the Urban Redevelopment Authority (URA) has gazetted many shophouses as conservation buildings. To date, only 6,500 shophouses remain in Singapore.
In high demand
Whether they are located on food streets, heritage districts or quiet neighbourhoods, every shophouse caters to many businesses and investors. With a limited supply of shophouses, there is constant demand for rental and sales.
Tras Street and
its Michelin Star restaurants
Everton Park and its
high-net-worth tenants
Boat Quay and
its colourful patrons
A strong investment
With the supply limited, as no new shophouses are being built, prices have only gone up.
Shophouses in Singapore present a compelling investment opportunity, combining historical charm with modern allure. These iconic structures seamlessly blend commercial and residential spaces, offering a unique blend of heritage and functionality. With their prime locations in vibrant neighbourhoods, shophouses promise consistent rental demand and potential capital appreciation. Singapore's robust economy and strategic urban planning enhance the appeal, making shophouses a resilient and lucrative investment choice. The enduring cultural significance, coupled with a dynamic real estate market, solidifies shophouses as a strong and enduring investment in Singapore.
Unique Styles
Despite being one category, shophouses are a vibrant mix of heritage and style. During its heyday, the shophouse underwent a total of six unique style transitions, reflecting Singapore’s then economy, affluence, urbanisation and architectural style.
The Early
Shophouse Style
(1840-1900)
Low (two storeys) and squat, the Early Shophouse typically has only one (at most two) rectangular windows on the upper floor and is characterised by minimal ornamentation, usually of an ethnic nature.​​
Late Shophouse Style
(1900-1940)​
The Late Shophouse had striking, varied and eclectic ornamentation, including the introduction of cultural influences such as roof eaves (Malay) and decorative tiles (Peranakan) to the building. It is hailed as the most spectacular of shophouses.
First Transitional
Shophouse Style
(early 1900s)
With Singapore’s growing affluence, the First Transitional Shophouse became taller (three storeys) and slightly more decorative. These shophouses are known for their elegant simplicity and relatively restrained ornamentation.​​
Art Deco Shophouse Style
(1930-1960)
The Art Deco Shophouse is distinguished by streamlined motifs (such as column orders, arches and keystones) and the lesser use of decorative wall tiles. A typical feature is a visible plaque bearing the date of the building’s construction.
Second Transitional Shophouse Style
(late 1930s)
The Second Transitional Shophouse mixes some Late Style decorative elements (such as wall tiles) with Art Deco motifs (such as geometric designs). Simple and streamline were two key components of this style.​​
Modern Shophouse Style
(1950-1960)
Moving towards a more utilitarian perspective, Modern Shophouses were built to be functional and austere. The façade features thin concrete fins and air vents (as decoration) alongside mild steel windows and flat roofs.
Zoning Categories
As a unique class of real estate in Singapore, shophouses fall under a total of four different zoning categories. These zoning categories dictate the terms of allowed use for the building, an important factor for buyers looking to start a business or rent out their property.
Full Commercial
Where use of the entire building is allocated to commercial activities.
Commercial on
1st storey
Where use of the entire building is allocated to commercial activities.
Commercial & Residential
Where an entire shophouse row under one owner/entity can be split 40/60 for commercial and residential use, regardless of storey.
Full Residential
Where use of the entire building is allocated to commercial activities.
Use and Licensing
Currently, there are a total of 18 use classes. Depending on the zoning category that the property falls under, there may be restrictions or applications required to obtain proper licensing or permits.
Additionally, certain streets no longer permit the addition of eating houses (Restaurant Use) due to overcrowded traffic.
18 Use Classes
Shop
Child Care Centre
Light Industrial Building
Sports Recreation Building
Office
Nightclub
General Industrial Building
Community Sports & Fitness Building
Restaurant
Pet Shop
Special Industrial Building
Commercial School
Warehouse
Amusement Centre
Convalescent Home
Theatre
Motor Vehicle Showroom
Community Building
Conservation Districts
Shophouses are divided into three conservation districts, with different levels of conservation practice.
Historic
Districts
The strictest form of conservation is practiced. The entire building is to be conserved but change of use from commercial to residential is permitted.
Residential Historic Districts
To suit the needs of individual owners, an extension lower than the main roof is permitted at the rear of the terrace houses​​
Secondary Settlements
Conservation is practised on a streetscape basis, owners may choose to conserve the entire building or build a new rear extension.
Contact us to find out what renovations are allowed before your purchase!
Things to look out for
With prices ranging from $5 million to over $20 million, purchasing a shophouse is no easy decision. Selecting the perfect shophouse for your plans will definitely play a part in your investment’s return. Having transacted over $1 billion in shophouses, our team has put together a checklist for prospective buyers to use before making their decision.
