Singapore's Urban Redevelopment Authority (URA) has stated that rents for shophouses in Kampong Glam, Little India, and Chinatown have increased at a "moderate pace" over the past two years. This announcement follows concerns about the closure of heritage businesses and the challenges they face, such as Warong Nasi Pariaman, Singapore's oldest nasi padang stall.
While the URA characterizes the rental increases as moderate overall for Chinatown and Little India, Kampong Glam has experienced a steeper rise. Property consultancy Colliers noted that yearly median rents in Kampong Glam have risen to approximately S$7.54 per square foot (psf) in the past year, up from S$6.02 psf in 2023. This translates to a 25% increase between 2023 and 2025, compared to the approximate 5% increases seen in Chinatown and Little India during the same period.
Several factors contribute to Kampong Glam's rising rents. Its proximity to the Central Business District (CBD) and areas like Bugis makes it an attractive location. Recent developments, including Guoco Midtown and Shaw Tower, have further enhanced its appeal. The recovery of tourism has also played a role, with increased tourist arrivals impacting rental prices.
The rising rental costs in Kampong Glam have led to some businesses shuttering, with at least 10 shops in Haji Lane closing in the past three years. Some businesses reportedly couldn't survive beyond their first year. Concerns have been raised about a potential "dilution" of Malay-Muslim culture if more new entities move in. In response, the Kampong Gelam Alliance (KGA) suggests boosting footfall and increasing cultural engagement to help mitigate rental costs and maintain the district's vibrancy.
In response to concerns about the changing character of Kampong Glam, the URA updated its guidelines in June 2025 to restrict new souvenir shops in the area. This decision came after feedback from stakeholders who felt the proliferation of such shops could negatively impact the area's unique character and mix of uses. The URA is also disallowing new bars, pubs, nightclubs, karaoke lounges, and Western fast-food restaurants in the core areas of Kampong Glam, Chinatown, and Little India.
Across Singapore, shophouse leasing activity experienced a decline in the fourth quarter of 2025, with PropNex reporting a 5.5% quarter-on-quarter decrease to 775 rental contracts signed. The value of rental contracts also fell by 4.1% quarter-on-quarter to S$8.25 million. Data from URA Realis indicates that the median monthly rent for shophouses slipped 1.4% quarter-on-quarter in 4Q2025 to S$6.50 psf per month but increased 0.8% year-on-year.
While some districts, such as District 7 (Middle Road and Golden Mile), District 1, and District 8, saw quarterly rental growth, others, like District 2 (Anson and Tanjong Pagar) and District 14, experienced declines. PropNex attributes the lower leasing activity to a challenging environment for retailers and F&B operators, citing intense competition, changing consumer spending habits, and manpower shortages. Over 2,400 F&B establishments reportedly closed in the first 10 months of 2025.
