Chart of the Day: Share of posh shophouses sold declined in 2019

Higher-priced units may not appeal to buyers with shorter investment horizons.

This chart from Knight Frank revealed that the proportion of shophouses sold for at least $5m fell to around 50% in 2019. They still dominated shophouse sales sales this year, but the share of units sold for $1-2m expanded.

The report noted that buyers were seemingly less willing to commit to freehold shophouses at higher average unit prices. “Additionally, the higher transacted prices also translate to longer investment horizons, which may not appeal to opportunistic buyers with shorter investment horizons,” Knight Frank added.

The priciest shophouse deal in 2019 was the sale of Eu Yan Sang Building by Eu Realty to 8M Real Estate for $54m or $8,623 psf.