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In a bid to curb home price growth, the government released a fresh round of property cooling measures – tampering the prospects of residential properties as attractive investments while giving shophouses a chance to stand out.
Transactions for shophouses hit a five-year record in Q1 2018 when it soared 281 percent year-on-year to a total value of $478.6 million, reported Singapore Business Review.
“Investors looking for alternatives to park their money could divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances,” said JLL Singapore Head of Research and Consultancy Tay Huey Ying.
Strata offices also stand to gain from the effects of the latest measures on the market, added Tay.
OrangeTee & Tie had previously said that shophouses may also serve as potential safe havens for investors, much like commercial buildings and industrial properties.
“We feel the additional measures have been introduced too hastily coming just after 9.1 percent growth in PPI over four quarters,” added Tay. “The market should have been given a chance to find its own level in response to the expected surge in launches in coming months.”
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