Why Shophouses Are Turning into Gold Mines in Singapore
Back in 2005, when a historic shophouse in Duxton Hill sold for just $385 per square foot, it was a modest deal for a prime piece of real estate. Fast forward to today, and that same property is now on the market at a mind‑blowing $3,000 per square foot. How did this impressive leap happen? Simon Monteiro, a boutique hotel and shophouse specialist at List Sotheby’s International Realty, has the answers.
The “Story” Appeal
- Creative entrepreneurs love the character of these heritage buildings.
- Investors feel like they’re curators of living history.
- During the pandemic, many people realized the blending of home and office makes these spaces even more valuable.
Monteiro notes that the emotional connection to a place that’s been part of one’s life story has become a huge selling point. This intangible “story” factor has turned a once‑mundane shophouse into a sought‑after property.
More Than Just a Building
He recently helped snap up two other shophouses – labeled “historical placemaking properties” – on Club Street for a staggering $3,935 per square foot. It appears the trend is no longer just about luxury; it’s about heritage + hustles.
Investor Mindset: A New Era
“The pandemic redefined how we live and work, so investors started seeing these spaces as more than just real estate – it’s about the vibe, the history, and the future potential.”
In summary, the boom in shophouse values is rooted in a mix of cultural appreciation, flexible living‑work dynamics, and a renewed love for places that carry stories. It’s not just about the numbers; it’s about owning a piece of Singapore’s soul.
What are the characteristics of a historical placemaking property? And how many are there in Singapore?
Why Singapore’s Old Buildings Are like Time‑Traveling House‑Hunters
What “Placemaking” Really Means
- Community vibes: It’s not just about bricks; it’s about the stories that live inside them.
- Built culture: When developers think of an old shophouse, they’re picturing a living museum of the people who once called it home.
- Local flavor: Each building’s design narrates a unique chapter of Singapore’s past.
The “I Want to Own History” Craze
- Architecture nostalgia: Buyers aren’t just buying a roof—they’re buying a piece of a city’s soul.
- Story‑filled walls: From the original owners to the everyday commuters, every cottage carries anecdotes worth bragging about.
- Historic streets: Even the roads these houses rest on carry their own tales, adding extra brownie points for collectors.
Singapore’s 1990s Playbook
- ~6,500 shophouses got gazetted as precious heritage gems.
- ~500 charming black and white houses joined the high‑fidelity club.
- ~2,700 Good Class Bungalows—yes, those tasteful bungalows—were catalogued for their story value.
Keeping Memories Alive
Through this preservation plan, Singapore keeps its story in every street corner and every old brick. The result? A city that feels both modern and deliciously nostalgic.
Where would one shop for such properties?
<img alt="" data-caption="Simon Monteiro at Duxton HIll.
PHOTO: The Peak” data-entity-type=”file” data-entity-uuid=”62d5eb13-b1ce-4f0e-848f-85703d9093a1″ src=”/sites/default/files/inline-images/Simon%20monteiro.jpg”/>
Why Buying Historic Shophouses Is the Real Estate Dream
Picture this: a century‑old shop front, a storied courtyard, and a yard that’s seen more footsteps than a new apartment block. As a heritage real‑estate pro, I’m all about finding these gems for clients—because they’re rare, they’re valuable, and they’ve got stories that make them instantly irresistible.
CBD vs. Out‑of‑CBD Shophouses
There are roughly 3,000 shophouses tucked in the central business district (CBD). The scarcity of these bargains has sparked a wild appreciation surge. And you guess what? Foreigners can actually buy them—so the upside is hard to miss.
But What About the Neighborhood Spots?
If you’re eyeing residentially zoned shophouses (where foreigners can’t own), the next best places are Jalan Besar, Lavender, Little India, the East Coast, and Geylang. Prices here are climbing steadily, yet still feel affordable—some spots are half the price of their CBD counterparts.
Bottom Line: Placemaking Properties That Actually Pay Off
- Limited supply = big appreciation in the CBD.
- Foreign ownership allowed in the CBD, great for
investors looking for a quick tax‑friendly exit. - Out‑of‑CBD districts
keep prices lower for long‑term growth.
In short, whether you’re chasing a bright future or a piece of history best kept in a sauna‑style cellar, there’s a perfect shophouse for you—just right around the corner.
Could you share with me your own experiences transacting these properties?
My Two‑Decade Quest to Turn Tanjong Pagar from Rough‑Age Rascals to Refined Rooftops
Back in 2010 I had my first taste of the Singapore real‑estate scene. A bunch of foreign investors were on the hunt for shophouses in Tanjong Pagar, and let me tell you: the place was a playground for sleazy bars and massage parlours. The only sensible thing to do was to step in and start a gentrification mission.
Placemaking 101: History Meets Modernity
With a trusty sidekick, Dr Julian Davison—architect‑historian extraordinaire and author of Singapore Shophouse—I dove deep into the past of each façade. The goal was simple: keep the heritage spirit alive while giving the old buildings a fresh, contemporary makeover.
Finding the Right Partners
- Our investors weren’t just buying; they were revering the architectural soul.
- They transformed those stone walls into sleek offices and buzzing restaurants.
- Today, they own over twenty shophouses citywide.
I’m deeply grateful to have helped them go beyond a mere property flip—they’re now custodians of Singapore’s cultural vibe.
The Magic of Timing & Collaboration
Placemaking isn’t a solo gig. It’s a symphony of:
- Punctuality – Finding the right tenants before the buzz dies.
- Expertise – Architects, consultants, and those who know the local stories.
- Patience – It takes a season to let the vibe settle.
And it’s all about balance: the right tenants, the right designs, the right people.
Neil Road: Shophouses with European Flair
We rallied a European family office to invest in two neighbours on Neil Road. An architect friend sketched a concept that married old charm with new function. The Goethe Institute came on board as a tenant, adding academic flair and a splash of cultural value to the block.
Wanderlust Hotel: Turning a Kindergarten into a Dream
There’s one place that pulls at my heartstrings: the Wanderlust Hotel on Dickson Road. My client, hotelier and restaurateur Loh Lik Peng, saw a future where an old kindergarten and Buddhist office could become a boutique haven that makes every traveler feel a kick of wanderlust.
- His team at Unlisted Collection rolled up their sleeves and turned the building into a star.
- The name “Wanderlust” wasn’t just a word; it stitched emotion into the walls.
Why This Matters
Over the last fifteen years, I’ve seen how heritage placemaking can uplift a whole neighbourhood. It’s about:
- Finding people who teach the future the story of Singapore.
- Recognizing URA’s role in preserving built heritage.
- Unraveling the countless narratives waiting in every brick.
What keeps me going is this blend of passion, history, and the relentless quest for the right people to bring a place to life.
Legacy Built, Stories Unfold
From the first shophouse in 2010 to the Wanderlust Hotel today, every project tells a tale of collaboration, timing, and respect for the past. And that is the real story behind Singapore’s evolving skyline.
— Originally published in The Peak
