Shophouse Transactions Lower 3Q2024 Uncaveated Deals Show Demand Huttons Asia

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Login to save articles for laterBookmarkSINGAPORE (EDGEPROP) – Despite a decline in caveated transactions, interest in the shophouse market remained strong in 3Q2024, according to Huttons Asia’s latest quarterly shophouse market report published on Nov 12.A total of 18 caveats were lodged for shophouse transactions in 3Q2024, a slight decrease from 21 caveated deals in 2Q2024. The transacted quantum for these caveated shophouses also dropped by 28.8% to $138.9 million compared to the previous quarter’s $195.1 million. While this is half of 3Q2023’s transacted quantum of $278.6 million, the decline is expected given the current market conditions.In the first nine months of 2024, 62 shophouses were sold, a 46.1% decrease from the caveated shophouse transactions during the same period in the previous year. The total value of shophouse transactions for the first three quarters of 2024 was $519 million, 48.5% lower than the same period in 2023.Read also: Invictus Developments, family office of Indon tycoon Bachtiar Karim, snaps up lyf Ginza Tokyo for $93 milDespite the drop in transaction figures, there was still strong interest in the shophouse market in 3Q2024. In fact, a number of shophouse deals were recorded but not caveated, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. These deals were reportedly for shophouses along Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2, with an estimated quantum of over $70 million.These transactions reflect the growing demand for shophouses, which has been observed in recent months. Lee notes that investors are drawn to this segment due to its scarcity and potential for strong capital gains. With the recent interest rate cuts, shophouses have become increasingly popular as a way to generate and preserve wealth, he adds. He expects shophouse transaction volume and quantum to increase in 4Q2024.