After a decade of its operations, JCUBE in Jurong East region of Singapore is set to close for a 40-storey JCube Condo Residence development. Connected to several amenities JCube Residence and with estimated pricing of S$2,000 to S$2,100 psf, the development is slated for launch in second half of 2023.

Shophouse transactions in Singapore saw a decline in the first quarter of 2023, according to a research report by Huttons Asia. The total volume of transactions for this quarter amounted to 29 caveated shophouse transactions, a 12.1% drop from the previous quarter, and 44.2% lower year-on-year. Moreover, the total value of these transactions summed up to $281.8 million, a 5.7% decrease since the fourth quarter of 2022.

The report noted that the slow start of the quarter was due to the Lunar New Year festivities, with only five shophouse transactions recorded in January. However, this figure gradually rose, with nine and 15 transactions reported for February and March respectively.

The average transacted value per shophouse came in at $9.7 million, higher than the previous quarter by 8.1%. The two highest valued transactions of the quarter, which both took place in Little India, included the sale of six freehold shophouses on Serangoon Road for $62.5 million and the 999-year shophouse at Boat Quay for $37 million.

Meanwhile, the median rent for shophouses across the island increased by 1.5% quarter-on-quarter. The district that recorded the largest growth was District 15 with median rents of shophouses soaring 15.8% to reach $5.49 psf per month.

Lee Sze Teck, senior director of research at Huttons, stated that shophouses are highly sought-after by investors for its value preservation ability. He added that the most popular area amongst investors was the Rochor area which includes Little India and Jalan Besar, accounting for 31% of total transactions in the first quarter.

Lee noted that shophouses are likely to become more valuable over time due to its limited supply and would be a great asset for ultra-high-net-worth individuals and family offices. Furthermore, with the recent cooling measures announced on April 27, some demand may be diverted towards the shophouse market, and an increase in demand as well as prices for such properties is expected for the remainder of 2023.