If you're considering investing in real estate in Singapore, shop houses offer a unique and lucrative opportunity. These heritage-rich properties blend residential and commercial uses, making them popular among investors, business owners, and history lovers alike.
In this guide, we’ll explore everything you need to know about shop houses for sale in Singapore — from what they are to why they’re such prized assets, and what to consider before buying one.
What Are Shop Houses?
Shop houses are traditional buildings commonly found in Singapore, Malaysia, and parts of Southeast Asia. These properties typically have a commercial shop on the ground floor and a residential living space on the upper floors.
They are known for their narrow frontages, deep interiors, and distinctive architectural styles — often with ornate facades, shuttered windows, and covered walkways known as “five-foot ways.”
Why Shop Houses Are Highly Valued in Singapore
1. Limited Supply
Shop houses are part of Singapore’s historical conservation efforts. Many are protected under conservation guidelines, especially those located in heritage districts such as Chinatown, Little India, Kampong Glam, and Joo Chiat. This limited supply adds to their exclusivity and long-term value.
2. Dual-Purpose Use
Their mixed-use functionality makes them highly versatile. You can run a café, boutique, office, or salon on the ground floor while living upstairs — a popular setup for entrepreneurs and creative professionals.
3. Strong Rental Demand
Shop houses in prime districts attract a consistent stream of tenants. Businesses looking for unique spaces are willing to pay premium rental prices, especially for well-renovated units in popular neighborhoods.
4. Capital Appreciation
With increasing demand and limited availability, shop houses have shown consistent capital growth over the years. They're often seen as a hedge against inflation and a legacy asset.
Popular Districts for Shop Houses in Singapore
1. Chinatown
A bustling tourist and business area, Chinatown is home to some of Singapore’s most iconic shop houses. Expect high footfall, rich culture, and premium prices.
2. Kampong Glam
Known for its Malay and Arab heritage, Kampong Glam offers vibrant streets and trendy boutiques. Shop houses here appeal to artsy retailers and F&B businesses.
3. Little India
This colorful enclave offers affordable entry points for investors, along with a strong local business community. Ideal for grocery shops, fashion outlets, and eateries.
4. Tanjong Pagar
Located in the CBD, Tanjong Pagar shop houses cater to high-end offices, bars, and fine-dining restaurants. Properties here often fetch top-tier prices and rental yields.
5. Joo Chiat / Katong
These eastern neighborhoods are known for their Peranakan heritage and charming shop houses. Popular among families and lifestyle businesses, it’s a hotspot for cafes and co-working spaces.
What to Consider When Buying a Shop House
✅ Freehold vs Leasehold
Freehold shop houses are more valuable as they offer indefinite ownership. Leasehold ones, typically 99 or 999 years, might be more affordable but come with limited tenure.
✅ Conservation Guidelines
Conserved shop houses come with strict URA (Urban Redevelopment Authority) regulations. Owners must adhere to façade preservation, color schemes, and materials used during renovations.
✅ Zoning and Usage
Always check the zoning regulations of the shop house. Some are zoned purely commercial, others are mixed-use. This affects what kind of business or residential use is allowed.
✅ Condition of the Property
Many older shop houses require significant renovation work. Check for structural integrity, electrical wiring, plumbing, and compliance with fire safety standards.
✅ Financing & Loan Restrictions
Shop houses with commercial zoning may require higher down payments (usually 20-30%) and come with different loan terms than residential properties. Engage with banks familiar with such properties.
How Much Do Shop Houses Cost in Singapore?
Prices vary significantly based on location, size, tenure, and condition. Here's a general range:
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Chinatown/Tanjong Pagar: SGD 8 million – SGD 20 million+
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Kampong Glam/Little India: SGD 4 million – SGD 10 million
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Joo Chiat/Katong: SGD 3 million – SGD 8 million
Keep in mind that conservation shop houses in prime areas command premium prices and may even see bidding wars.
Should You Buy for Own Use or Investment?
Both options offer excellent benefits.
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Own Use: Ideal for business owners who want to run a shop or restaurant and live above the premises.
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Investment: You can lease both the commercial and residential spaces to different tenants. Many landlords earn strong passive income from this setup.
Tips for Finding Shop Houses for Sale
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Work with a property agent experienced in conservation and commercial properties.
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Use portals like PropertyGuru, 99.co, and EdgeProp.
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Check government auction listings for potential deals.
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Walk through conservation districts to look for “For Sale” signs — some listings aren’t advertised online.
Final Thoughts
Buying a shop house in Singapore is more than a financial investment — it’s a chance to own a piece of the country’s rich history. With proper due diligence, these properties can offer high returns, cultural value, and timeless charm.
Whether you're a business owner looking for a vibrant space, a savvy investor seeking long-term growth, or simply someone enchanted by heritage architecture, shop houses in Singapore provide a rare and rewarding opportunity.
Important Links
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