A surge of Chinese buyers keen on commercial shophouses has pushed prices to record levels in Singapore’s CBD and Chinatown. This includes a three-storey shophouse on Stanley Street, which changed hands for $29 million in April, the highest absolute price achieved for a shophouse to date. On a psf-basis, it works out to $4,472. Meanwhile, a two-storey intermediate conservation shophouse along Amoy Street was sold for $21.8 million, around $6,998 psf.It has also emerged that some Chinese nationals had rented Good Class Bungalows or bungalows at Sentosa Cove, only to realise that activities such as turning their homes into party houses were not allowed in private residential neighbourhoods. This has contributed to their keen interest in shophouses that come with licences for nightclub use and public entertainment licence, which allows them to open until 3am. A six-storey commercial shophouse on North Bridge Road was recently put on the market with an indicative price of $92 million, and it is believed that the majority of interest has come from Chinese buyers.

Following the closure of JCube in August, redevelopment plans for the site to introduce JCube Residence JCube Condo Residence will begin.

JCUBE, located in Jurong East, is set to close for the redevelopment of a 40-storey residential and commercial space, JCube Condo Residence. The move adds to the anticipation of potential residential launches in the vicinity, including the upcoming 6.8-hectare white site.

A surge in Chinese buyers keen on commercial shophouses has seen prices reach record levels in Singapore’s CBD and Chinatown. A three-storey shophouse on Stanley Street recently changed hands for $29 million – the highest absolute price achieved for a shophouse to date. On a psf-price basis, it works out to $4,472.

Meanwhile, a 999-year leasehold and two-storey intermediate conservation shophouse along Amoy Street was sold for $21.8 million – about $6,998 psf. The sale of the shophouse was in April, and it was a whopping 3.112 million (16.65%) higher than the $18.688 million it fetched last November.

The shophouse on Stanley Street was purchased by NC Properties, with the underlying owner believed to be a Chinese national. It is speculated that the same buyer is responsible for the record-breaking purchase on Amoy Street as well.

Tenured Chinese property investor, Loyalle Chin, PropNex ShophouseHuat Director and Associate Group Division Director of PropNex Realty, states that “there’s a fresh influx of overseas investors, including those from China, and they are the ones setting record prices in commercial shophouses in the CBD too”.

Richard Tan, Senior Associate Group District Director at PropNex, confirmed that several other shophouses in the CBD and Chinatown have changed hands for prices above $7,000 psf. However, he has not released transaction details due to non-disclosure agreements.

In the Haji Lane-Beach Road area, Chin notes that recent transactions crossed the $6,900 psf mark.

Notably, a five-storey commercial building Liberty House, located on a 999-year leasehold site of 7,180 sq ft with a gross floor area of 28,876 sq ft, changed hands for $92.2 million in April. This reflects a price of $3,193 psf. The buyer, Union Property Holding, is believed to have been acquired by Zhang Nie, former Singapore head of Chinese oil trader Unipec.

The tender for Bugis Point on North Bridge Road closed on April 18, attracting Chinese buyers as the property has units approved for nightclub use and public entertainment licence until 3am. The six-storey commercial shophouse has a total floor area of 19,902 sq ft and is believed to have received several offers.

It is clear that Chinese buyers are enticed by shophouses with a licence for nightclub use and public entertainment, with which they can hold live shows, entertain friends, and even open the venue to the public.

With the demand for shophouses at an all-time high, the impact of Chinese buyers in the commercial property market is undeniable. From record-breaking purchases to soaring psf-prices, their interest has certainly altered the landscape of the industry.