After Good Class Bungalows (GCBs), what’s next for property investors?
Good class bungalows (GCBs) accept emerged as prized assets for property investors in Singapore, simply there are other key trends to go on an heart out for.
According to a new report by List Sotheby's International Realty, Singapore has seen escalating activeness from private investors and investment funds buying up a collection of conservation shophouses and boutique hotels in historical buildings over the by year.
This trend volition go on to rise for 2022, especially for ultra-high-net-worth individuals (UHNWIs) who are too actively snapping up GCBs, said Simon Monteiro, associate vice president of List Sotheby's International Realty.
"Conservation shophouses, boutique hotels and GCBs all have iii attractive qualities equally bays assets – they are limited in supply, have great historical value and come with their own unique story," said Monteiro.
"This appeals to ultra-rich investors because when they buy these historical placemaking properties, they will own a piece of Singapore's history, an nugget class that is coveted past many and hence have the prestige of buying akin to valuable fine fine art. I also have investors who purchase them every bit legacy wealth assets, with plans to pass them downward to the younger generations," Monteiro added.
Monteiro likens owning a historical placemaking property to existence part of an sectional members club where in that location is just a express number of memberships and a long waiting list. Due to regulatory guidelines to preserve Singapore heritage, at that place are just not enough of these properties.
According to a report past Colliers, there are about 6,760 conserved shophouses in Singapore. Of these, more than 60 per cent of the shophouses are located in the prime areas of Rochor, Outram, Singapore River and Downtown Core.
Shophouse sales rebounded strongly past 132 per cent quarter-on-quarter to S$310 million in Q2 2022 afterward a decline of 53.6 per cent quarter-on-quarter in Q1 2021, attributable to pent-upward demand in Q4 2020. This brings shophouse sales book in the first half of 2022 to Southward$444 million, stated the Colliers study.
With over 25 years in the real estate industry, List Sotheby's Monteiro has seen the prices for shophouses appreciate by 680 per cent. A shophouse sold at Duxton Hill in 2005 transacted at S$385 psf, and in 2021, the same shophouse is valued at S$3,000 psf.
In the by five years, prices have soared exponentially. Ii shophouses in Gild Street transacted past Monteiro achieved a record price of S$iii,935 psf.
"In comparison with electric current prices for apartments in Singapore's Orchard Route, where prices could go for almost Due south$6,500 psf, these placemaking trophy assets present themselves as a potentially more than attractive investment," the report said.
"Conservation shophouses, boutique hotels and GCBs all have three bonny qualities every bit trophy assets – they are limited in supply, have great historical value and come up with their own unique story." – Simon Monteiro
Source: https://cnalifestyle.channelnewsasia.com/obsessions/conservation-shophouses-property-investment-singapore-284501
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