Singapore’s architectural landscape is adorned with unique colonial-era buildings known as “shophouses,” which have become highly sought after by high net worth individuals and investors. These two- or three-story structures, built as early as the 1840s, stand as a testament to the country’s rich history and vibrant heritage. Despite the exorbitant costs associated with these properties, the allure of owning a piece of Singapore’s limited cultural gem continues to attract buyers from around the world.
From renowned figures like Jack Ma’s wife to Hong Kong superstar Jackie Chan, the list of shophouse owners reads like a who’s who of the elite. Their interest in these properties highlights the prestige and exclusivity associated with owning a piece of Singapore’s history. Reports suggest that even Spanish tycoon Ricardo Portabella Peralta and Bridgewater founder Ray Dalio have joined the ranks of shophouse owners, further solidifying the appeal of these unique investments.
The finite nature of shophouses in Singapore adds to their appeal as a valuable commodity. With only around 6,500 units identified as conservation buildings, the scarcity of these properties makes them irreplaceable. According to Sebestian Soh, chief placemaker at Meir Collective, the intricate moldings and design elements of these buildings cannot be replicated using modern technology. As a result, shophouses hold a special place in the hearts of investors who view them as collectors’ items with both historical and aesthetic value.
Commercial shophouses offer a wide range of uses, from food and beverage establishments to boutique retail stores and family offices. This versatility opens up opportunities for investors to generate income from their properties through various business ventures. Furthermore, the exemption of shophouses from the government’s property cooling measures adds to their attractiveness as an investment option. With additional levies imposed on residential properties, commercial shophouses have emerged as a preferred choice for affluent individuals and corporate entities looking to diversify their portfolios.
The appeal of shophouses extends beyond their aesthetic appeal and historical significance. Loyalle Chin, a director at Propnex, highlights the role of these properties as a safe haven for wealth preservation, especially among ultra-high-net-worth individuals. With a net worth of at least $30 million, these investors seek to protect their assets by investing in tangible and secure assets. Conservation assets, such as shophouses, present an attractive option within the real estate market, offering stability and long-term value to discerning investors.
The allure of Singapore’s shophouses to high net worth individuals lies in their unique historical value, commercial versatility, and limited availability. As an investment option, these properties offer a combination of prestige, exclusivity, and potential financial returns, making them a coveted asset class in the competitive real estate market. With demand from affluent buyers continuing to rise, the legacy and charm of Singapore’s shophouses are set to endure for generations to come.