Title:
Shophouses: The Property of Your Imagination
“Each shophouse is unique and has strong heritage significance. Owning shophouses is akin to owning an art piece. Due to its scarcity and historical value, shophouses are seen as trophy assets and are an asset class which is defensive and offers stability during economic uncertainty.”
– JLL Singapore capital markets associate director Clemence Lee in a Singapore Business Review Interview (https://sbr.com.sg/commercial-property/in-focus/singapores-ultra-wealthy-lured-shophouses-despite-lower-yields)
People often say that Singapore is now too commercialized and too modern. Its people have long abandoned their fishing village and immigrant roots and moved onto financial markets and pursuing luxuries. Yet images of old Singapore still remain in the city for those who are looking for them. Amongst them are shophouses, which the government are actively preserving.
Shophouses are two or three storeys tall buildings built side by side. They are a fascinating part of Singapore’s architecture landscape and some are located in prime locations such as Tanjong Pagar, Clarke Quay and more. They come in different styles depending on the time period they are built (as pictured below). Shophouses are often seen as part of Singapore’s unique culture and treated by Singaporeans and tourists alike as an attraction.
(Source: http://eltrust.sg/singapore-shophouse-guide)
Shophouses are not merely an icon of the past but they transform with time as well. While there are decades old businesses and services still alive in these places, new business and purposes come into play as well. Own a piece of Singapore’s history while making it into the space of your dreams. Here are some things you can do with a shophouse:
#1: Commercial Usage
These days, many people want to own a business and be their own boss. With a saturation of start-ups, new business ventures and newly opened food joints, not many survive the test of time. Those that do chalk it up to several factors such as perseverance, strong marketing and innovation. Take a look at My Awesome Cafe, the perfect blend of nostalgia and modernity:
My Awesome Cafe resides in a shophouse that was once the very first Traditional Chinese Medicine Hospital dated 1952. It is started by Franck Hardy, a Frenchman who used to be part of the hotel industry. By keeping the original exterior, this cafe stands out from a normal establishment in a mall or elsewhere. It is a hot favourite among locals, expats and tourists!
Restaurants and cafes are not the only kind of business you can have in a shophouse. Apart from the typical retail places, studios are also setting up shop in these buildings. Work-life balance is a key buzzword in today’s world where people are expected to have a balanced work and personal life. Increasingly, people in the world are signing up for different lessons to develop skills or to train their bodies. For instance, yoga is a very popular class among Singaporeans these days.
(Source: http://three-d-conceptwerke.com/portfolio/yoga-movement-circular-road/)
Having a studio located in a shophouse will allow people to have a very different experience compared to going to a mall. It adds a touch of homeliness and uniqueness. Yoga Movement and MVMT Studio are two such studios on Circular Road in Clarke Quay. Being in Clarke Quay means they are relatively accessible to those working in the CBD area. They are also near various restaurants as well as quaint bars where people can go to unwind after their lessons.
The interior of a renovated shophouse that houses a pole dance studio, MVMT Studio (Source: https://www.mvmt-studio.com/about-us)
Have you ever had the desire to open up your own restaurant? Or perhaps you have a specific hobby you’re hoping to teach others about? A shophouse will be the perfect place for you to start something new if you are going for something novel or unexpected.
#2: Residential Usage
Most people in Singapore live in HDBs. The more affluent typically reside in private properties such as condominiums, penthouses or landed properties. As for shophouses, they are often regarded as simply commercial spaces or part of Singapore’s old heritage. Yet, there are the special few who have decided to make a living space out of shophouses.
(Source: https://qanvast.com/sg/articles/renovation-journey-loft-style-shophouse-1197)
What makes a shophouse a good place for a residence? For one, unlike a landed property, it is not isolated in an area that only consists of other homes. You will get your own private multi-level space while having access to good eateries and shops nearby. If having a loft is your dream apartment, renovating a shophouse is your best bet at achieving it.
#3: Investment Purposes
As mentioned above, shophouses are part of Singapore’s cultural history. They are in between the past and the present that exists even among the skyscrapers and new developments. The government and Singaporeans are taking special care to make sure these areas are not taken over and last through the times. Furthermore, they are often located in prime locations such as near office areas or cultural sites like in Chinatown or Little India.
One of the key factors of why shophouses make a good investment is because they are limited in quantity. Moreover, there is still a demand for it as people value its unique position among different building types.
“Buoyant demand for conservation shophouses in the locality has contributed to the rise in their prices from SGD 1,800-2,300 per sq ft on gross floor area in 2013/2014, to SGD 3,000-4,000 per sq ft in 2018 for those sitting on freehold land. For their 99-year leasehold counterpart, we estimate their prices to have inflated from SGD 1,500-1,700 per sq ft about five years ago, to around SGD 2,300-2,800 per sq ft in 2018.”
Doreen Goh, Director in JLL Research & Consultancy (Source: http://www.jllapsites.com/research/allure-singapores-shophouses/)
Conclusion
Owning a shophouse is like owning a piece of quilt that interweaves Singapore’s then and now. There are many things you can do with a shophouse that you cannot with a condo or landed property, the only limit is your imagination.
Take a look at the shophouses I have in my listing to begin your shophouse adventures today.
