articleSINGAPORE (EDGEPROP) – Despite a decline in shophouse transactions in 3Q2024, Huttons Asia’s latest quarterly shophouse market report published on Nov 12 revealed that interest in the shophouse market remained strong.The report noted that while there were only 18 caveats lodged for shophouse transactions in 3Q2024, a decrease from 21 in 2Q2024, the total transacted quantum of $138.9 million was still relatively high. This was only a 28.8% drop from the previous quarter’s $195.1 million. However, when compared to 3Q2023’s transacted quantum of $278.6 million, it was only half of the figure.Roughly 62 shophouses were sold in the first nine months of 2024, according to caveats, which indicates a 46.1% decrease from the same period in 2023. Additionally, the total value of transactions was $519 million in the first three quarters of 2024, which is 48.5% lower compared to the same period in 2023.The report also highlighted several shophouse deals in 3Q2024 that were not caveated, according to market sources. These transactions occurred in popular areas such as Amoy Street, Neil Road, and Telok Ayer Street in Districts 1 and 2. The estimated quantum for these shophouses is over $70 million, indicating strong demand for shophouses despite the decline in caveated transactions.Senior Director of Data Analytics at Huttons Asia, Lee Sze Teck, believes that the interest in shophouses is due to their scarcity and potential for significant capital gains. He also believes that the recent interest rate cuts have contributed to shophouses becoming increasingly popular as a wealth creation and preservation asset. He predicts that shophouse transaction volume and quantum may increase in 4Q2024.
Investing in a Singapore Condo requires careful consideration of financing options. Fortunately, Singapore offers a variety of mortgage choices; however, it is crucial to familiarize oneself with the Total Debt Servicing Ratio (TDSR) framework. This framework sets limits on the amount of loan a borrower can acquire based on their income and existing debt obligations. To make wise financing choices and avoid excess debt, investors should gain a strong grasp of the TDSR and seek guidance from financial advisors or mortgage brokers.