A trio of 999-year conservation shophouses in Jalan Besar is on the market for $42 million; the collection sits on a combined land area of 5,646 sq ft. The properties are jointly marketed by Shophouse Huat and JNA Capital Markets, both under the umbrella of Propnex Realty.
A single owner owns the shophouse at 209 Jalan Besar, while different owners own both shophouses at 211 and 213 Jalan Besar. The three properties can be purchased collectively or separately.
The adjacent properties comprise a three-storey and mezzanine corner shophouse at 209 Jalan Besar, with a floor area of 5,502 sq ft and a pair of two-storey shophouses with existing four-storey rear extensions, totalling 8,760 sq ft.
The first and second floors of the corner shophouse have restaurant approval, while the mezzanine and third floors can be used as office spaces. The first floor of 211 Jalan Besar is leased to a shop, while the remaining floors have been leased as office spaces. Likewise, the top three floors of 213 Jalan Besar have been leased out for office use, but the ground floor has temporary approval to operate as a massage and spa establishment until January 2027.
The properties are situated within the Desker Road conservation area, and the corner shophouse faces an intersection that fronts Jalan Besar, Sam Leong Road and Maude Road. The corner shophouse has a 28m street frontage on Sam Leong Road, and all three shophouses have a collective frontage of 21.5m along Jalan Besar.
Buyer sentiment lifts
Investors had anticipated that a technical recession could overshadow the Singapore economy in the second half of this year due to tariffs imposed by the United States, but this scenario did not materialise. Interest rates have eased slightly in 1H2025 compared to a year ago, says Loyalle Chin, senior associate district director at PropNex Realty.
He adds that this has buoyed confidence among real estate investors in Singapore and refuelled acquisition activity in the shophouse segment. However, prices of prime location shophouses in familiar areas such as Telok Ayer and Boat Quay have skyrocketed to the point where some freehold conservation shophouses can command average prices of more than $7,500 psf.
As a result, there is stiff price resistance from buyers, who are mostly not eager to set ever-higher record sale prices for prime location shophouses, says Chin, who adds that buying interest has gravitated to city-fringe locations such as Jalan Besar and Farrer Park, where prices are comparatively reasonable.
In March, a block of four adjacent conservation shophouses at 25/27/29/31 Jalan Besar was sold for $26.5 million. The standalone island plot spans 3,468 sq ft and is located in the Little India Conservation District. Each plot is zoned ‘commercial’ with 999-year leasehold tenures.
The shophouses at 138/140/142 Jalan Besar are also on the market for $27 million. (Picture: PropNex)
Other shophouses in the vicinity are also on the market, including the sale of 138/140/142 Jalan Besar, which has a guide price of $27 million. These freehold, two-storey attic shophouses had been on the market for $30 million earlier this year. The adjoining conservation properties sit on a 4,353 sq ft plot and have a total built-up area of 10,318 sq ft. PropNex is also marketing the sale of these shophouses.
Jervis Ng, founder of JNA Real Estate, states that shophouse prices in the CBD are nearly double those of shophouses in Jalan Besar, Kampong Glam, and Geylang. “At the same time, the wider Jalan Besar area has experienced a transformation with more trendy cafes, creative businesses, and boutique hotels taking root in recent years, complementing the area’s heritage,” he adds.
Acquisitions abound
Buyer profiles also reflect the weight of capital investment being funnelled into these assets, from locally established investment firms increasingly backed by overseas funds to family offices with deep pockets who are eager to build up their portfolio of capital-appreciating assets in the city-state.
Heightened buying interest and recently closed shophouse deals in Jalan Besar have pushed up asking prices. It is challenging to find a well-located shophouse in this area going for less than $12 million these days, says Chin.
A snapshot of shophouse transactions in the Jalan Besar area by EdgeProp’s EP Buddy.
Local firms, such as 8M Real Estate and Clifton Partners, have established a reputation by repositioning under-valued shophouses and commercial buildings in Little India and Jalan Besar into near-institutional-grade assets.
8M Real Estate’s portfolio of properties in Jalan Besar comprises the Wanderlust Hotel at 2 Dickson Road and 109-117 Jalan Besar, a 999-year leasehold block of five adjoining conservation shophouses, which it purchased in 2022. Meanwhile, Clifton Partners portfolio in the area includes 75 Maude Road, 309/311 Jalan Besar, 37/38/39 Upper Weld Road, 5/7/9 Townsend Road, 301 Jalan Besar and 79 Maude Road.
In some cases, these freshly repositioned shophouse assets are snapped up by institutional investors or family offices. Many of these investment-centric buyers are looking for stabilised properties with a long runway for capital appreciation after they have been refurbished, says Ng. He adds that this group of investors typically focuses on properties that can generate rental income immediately, offer decent rental yields, and have capital value that has room to grow in the long term.
Competitive F&B landscape
Investors have also gravitated towards shophouses with F&B approval, in tandem with increased tenant demand for restaurant and eatery locations in city-fringe neighbourhoods, says Chin.
Echoing this sentiment, Ng adds that most local buyers tend to opt for freehold or 999-year shophouses, which can yield a steady rental income of 2%-2.5%. “Units with existing F&B approval are highly sought after as they can command higher rents. Key features like good frontage, steady footfall and proximity to MRT stations or main roads are also important,” he says.
In Jalan Besar, leasing demand has centred around upcoming or recently completed residential developments in the area, such as the 960-unit prime location public housing (PLH) project River Peaks I and II opposite Jalan Besar MRT Station. This public housing project was launched in 2021 and is scheduled for completion by 2028.
Other upcoming residential developments in the vicinity include the 398-unit PLH project King George’s Heights off Kitchener Road, City Developments Ltd (CDL) and MCL Land’s 407-unit Piccadilly Grand in Farrer Park, as well as the neighbouring 1,274-unit Farrer Park Fields PLH project on Farrer Park Road.
All in, more than 3,000 public and private homes are set to be completed around the Jalan Besar area over the next three years. This is likely to boost overall demand for retail services, F&B outlets and amenities.
As a result, the average rent for F&B spaces in shophouses in this area has climbed to an average of $8-$10 psf per month (pm), while average rents for commercial but non-F&B approved shophouse units in the Jalan Besar area is about $6.50-8.50 psf pm, according to market data tracked by JNA Real Estate. In comparison, prime shophouse rents in the Central Business District have increased to approximately $12-$15 psf pm. This has pushed out many F&B operators who are relocating to more affordable city-fringe neighbourhoods.
Price expectations adjust
The shophouses at 209, 211 and 213 Jalan Besar cater to a diverse range of buyers, including co-living operators and family offices, according to Ng. He adds: “The units are adjoining, which allows them to be combined into a larger floor plate, a rare find in the shophouse market. They also enjoy wide frontage along a busy main road, offering strong visibility and foot traffic”.
Ongoing market activity suggests that investors, including family offices and private wealth funds, are eager to build their investment portfolios with high-quality shophouse assets. Likewise, a handful of shophouse owners are keen to capitalise on the buying momentum and have shown signs of being open to price negotiations with the right buyer, says Chin.
Owners of ageing shophouses have started to see their rental returns erode in recent years, and those who plan to divest may need to lower their asking prices if they want to capitalise on their property, says Ng. “Good units in prime spots will still get strong interest and good offers. But those that are less attractive will need to be priced right to move.”
