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Propnex linked this to the absence of big-ticket caveated deals.
Shophouse sales value fell 15.6% quarter on quarter (QoQ) to about $163.5m in the third quarter (Q3) of 2026, even as market activity picked up, according to PropNex.
Transaction volume rose 37.5% QoQ to 22 deals from 16 in Q2.
PropNex said the moderation in total sales value was largely due to the absence of big-ticket caveated deals in Q3.
August recorded the quarter’s largest transactions, including a 999-year leasehold conservation shophouse on South Bridge Road in District 1, which sold for $16.8m, according to URA Realis data.
Shophouse leasing activity rebounded, with 883 rental contracts signed in Q3, up 15% QoQ from 768. The figure marks the highest quarterly volume since Q3 2024, when 934 contracts were recorded.
PropNex expects shophouse investment demand to stay supported by Singapore’s standing as a stable, well-regulated market and the limited supply of conservation shophouses.
“Against this backdrop, shophouse capital values are expected to remain resilient, even if price gains are measured in the near term,” the firm added.
However, it flagged downside risks, including the US Federal Reserve’s 25-basis-point rate hike in September.
Higher borrowing costs could narrow the gap between rental yields and financing costs, making investors more selective and potentially slowing transactions in the coming months.
Shophouse leasing may also struggle to sustain its Q3 momentum as food and beverage operators face mounting business pressures.
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