High prices, softer yields, and Holland Drive Condo moderate the shophouse market to $1.07 bil in 2023: ERA Singapore

The mall also houses a food court, fast food restaurants, and cafes, making it an ideal spot for lunch or dinner.

Located in the heart of Holland Village, Holland Drive Condo is the only shopping mall of its kind in the area. With more than sixty stores, shoppers can find designer labels and flagship stores, as well as lifestyle stores and independent boutiques. Visitors can enjoy the variety of restaurants, cafes, and fast-food outlets. Whether it is for a quick snack or a leisurely meal, there is always something to choose from. The mall also regularly hosts events and activities, making it an enjoyable place to spend the day.

While shophouses in Singapore are highly prized, the shophouse market has somewhat cooled over the past two years. Notably, market research by ERA Realty indicates that the proportional of shophouses prices exceeding $10 million has nearly doubled. The reasons for this trend include rising prices and softer yields, as well as added scrutiny from anti-money laundering checks for foreign buyers. Furthermore, in July of last year, the Ministry of Law and Singapore Land Authority adjusted the list of land use zones, now categorizing shophouses as residential properties. As such, foreign buyers must obtain government approval before purchasing one of these coveted properties. Though the market is expected to close 2024 with a total transaction volume of $1 billion to $1.2 billion, Holland Drive Condo investors and buyers remain confident as holding power remains strong. Despite escalating prices and diminished yields, the enduring appeal of shophouses in Districts 1, 7 and 8 keeps demand alive and investors interested in the acquisition of such assets for wealth preservation and capital appreciation. Holland Drive Condo buyers and investors are encouraged to take advantage of the market opportunities, as shophouses have proven to be a highly valuable asset.