Shophouses in Singapore have always carried a certain magical mix of heritage, scarcity, and rental flexibility. Yet 2025 has been throwing up some curious signs. Numbers are cooling, investors are shifting gears, and some prime districts aren’t quite the darlings they used to be. So, what’s going on?

Is the CBD No Longer the Shophouse Darling?

Central districts (think Districts 1 and 2, the CBD and surrounds) have taken the sharpest hit. Median PSF that once soared above S$11,500 in 2024 has slipped to around S$6,500 in 2025. That’s a hefty correction.

Transaction values are down by about S$325 million this year, with volumes thinning out: only 18 deals in Q2 2025, about 10% fewer than in Q1.

👉 Rozi’s Field Notes: Heritage appeal alone doesn’t guarantee price stickiness. Central gems are still gems. However, investors are pushing back on sky-high valuations, and sellers may need to reset expectations.

Why Are Prices Falling but Averages Still Climbing?

Here’s the paradox: despite the overall slowdown, average land PSF actually rose slightly, from S$6,397 in late 2024 to S$6,431 in the first half of 2025.

So how do we make sense of this? It suggests that while fewer deals are happening, those that do close are skewed toward premium properties with buyers willing to pay up. It’s a market of quality over quantity.

👉 Rozi’s Field Notes: In thin markets, the averages can trick you. What’s really happening? Buyers are choosier, and trophy assets still find suitors, but the overall pool of deals is shrinking.

Could the Suburbs Be the New Sweet Spot?

District 19 (Hougang, Kovan, Serangoon Gardens) has quietly bucked the trend, with PSF growth continuing at a steadier clip. Suburban and mixed-use areas are proving more resilient, partly because entry prices are lower and tenant profiles more diversified.

👉 Rozi’s Field Notes: Don’t underestimate the heartland shophouse. For investors spooked by CBD volatility, the suburbs offer less glitter, but steadier ground.

Is the Love Affair with F&B Assets Fading?

There’s a clear shift: investors are shying away from shophouses that lean heavily on F&B tenants. With higher operating costs and tighter labour, the F&B sector looks riskier in 2025.

Instead, attention is moving toward “living sector assets” such as shophouse hotels, co-living, and mixed-use formats that diversify risk. Even HDB shophouses are drawing interest, with a S$55.5 million bulk deal for 10 units making headlines.

👉 Rozi’s Field Notes: Shophouses aren’t just about kopi joints and bistros anymore. The investor appetite is shifting toward where the yields are more predictable, and the tenants more resilient.

If Buyers Are Holding Back, Who’s Still Paying Up?

Here’s the twist: even as sales slow, rentals are heating up. Around 800 rental contracts were signed in Q2 2025, down slightly in number, but with rental PSF climbing 3.1% quarter-on-quarter.

👉 Rozi’s Field Notes: Businesses may not be buying, but they’re still renting. Rising rents signal that end-user demand for space is alive and it’s the investors who are getting cautious.

Is 2025 Just a Pause or the Start of a Reset?

Total shophouse sales for the year could land between S$500 million to S$700 million, lower than the boom years. Macro volatility from interest rates to global uncertainty means the “wait-and-see” mode is likely to stick.

👉 Rozi’s Field Notes: It’s not the end of the shophouse story. It’s simply a chapter of recalibration. Buyers are more selective, sellers are learning to adjust, and investors are re-thinking what kind of tenant mix makes sense for the long haul.

The Quizzical Takeaway

So, are shophouses cooling or quietly reinventing themselves? The truth might be both. Volumes are down, central prices have corrected, yet rentals are holding strong and suburban gems are finding their place.

Shophouses have always straddled tradition and reinvention. In 2025, it looks like they’re doing exactly that again.