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Singapore’s shophouses in recent times have become the investment of choice, especially among family offices, billionaires, and local developers. Some notable buyers include hedge fund manager Ray Dalio, who bought two shophouses at Club Street for $25.5 million, and the wife of Alibaba Group co-founder Jack Ma, who purchased three adjoining shophouses on Duxton Road for around $45 to $50 million. As most of these Singaporean heritage buildings are zoned commercial, there is no additional buyers’ stamp duty (ABSD) and sellers’ stamp duty for foreigners, unlike residential properties, boosting their appeal to high-net-worth-individuals. According to URA records, 132 shophouses worth $1.6 billion were transacted in 2023. From these records, we calculated the median price for shophouses, as well as the highest and lowest transactions, and sorted them by district. : URA (2023) Transaction Records The median price of a shophouse in 2023 was around $6.12 million, with an area size of around 1,763 sq ft, or $4,655 per square foot (psf) on land. Based on the table above, the following are the top 3 most expensive districts for shophouses in 2023:   Despite the varying land tenures of shophouses in Districts 1, 2, and 10, ranging from freehold to 99-year leasehold, and having a smaller median size of around 1,452 sq ft, they command a higher price premium due to their prime locations within Singapore. Among these three districts, the highest-transacted shophouse was on Ann Siang Road in district 1, which sold for $32 million, almost double the median price. In contrast, the lowest transaction was a 99-year lease on New Bridge Road, which traded at $5.5 million, around one-third of the median price. Interestingly, the most expensive shophouse in 2023 was actually transacted in district 8, on Serangoon Road, for $62.5 million. This freehold property was also notably one of the largest, at 9,041 sq ft. Based on the table above, the following are the top 3 cheapest districts for shophouses in 2023:     On the other end of the spectrum, the cheapest districts for shophouses are, unsurprisingly, the suburban regions of 26, 27, and 21. Despite the fact that many of the transacted shophouses on the list have freehold status and a larger median size of 1,520 sq ft, the prices reflect the lower premium commanded by these locations. Among these three districts, the lowest transacted shophouse was at Jalan Bingka in district 21, which was the only 99-year leasehold property on the list (with a remaining lease balance of 47 years) for $850,000. It is also the cheapest shophouse transaction for 2023. Generally, freehold properties are perceived to command a higher premium than leasehold properties due to their ability to retain ownership indefinitely. Based on the 2023 records, there were 107 shophouse sales with freehold or leases exceeding 99-years, with a median price of around $6.15 million and an average unit price of $5,358 psf on land. In contrast, there were 25 sales of leasehold properties with a 99-year tenure, with a median price of around $6 million and an average unit price of $5,320 psf on land. This indicates that, given the rarity of these shophouses, even those with short lease balances are only marginally cheaper than freehold properties. A total of 37 shophouses transacted for a combined value of around $244 million from the start of the year through May. The median price of approximately $5.15 million, which includes 34 freehold and three 99-year leasehold properties, is around $1 million lower than the median price in 2023. The activity within the shophouse space slowed last year due to the money-laundering investigation of the Fujiang Gang, which reportedly acquired as many as 10 shophouses. However, with more clarity from authorities over the sales of some of these properties, buyers’ interest is returning to this unique commercial asset class. Knight Frank holds an optimistic outlook for shophouses in Singapore. It projects that shophouse sales volumes will range between $1.1 billion and $1.2 billion for the remainder of the year. Given the short supply of 6,500 conserved shophouses and the continued investments by high-net-worth individuals, shophouses are not only likely to remain defensive but may also continue to see decent appreciation going forward.