Despite a general slowdown in Singapore's shophouse market in 2025, Little India remained a popular choice for shophouse buyers. While the overall shophouse market faced headwinds, Little India stood out as a strong performer, attracting significant investment.
In 2025, a total of 24 shophouses were sold in Little India, with a collective value exceeding S$183 million. This accounted for over 25% of Singapore's total shophouse sales value for the year, highlighting the district's dominance. In contrast, the total transaction value for the broader shophouse market in Singapore fell to S$623.2 million, the lowest in a decade. This reflects a notable divergence in performance, with Little India bucking the overall downward trend.
The sluggish performance of the wider shophouse market in 2025 was primarily attributed to a weak first half, particularly the second quarter, when global market confidence was shaken by US trade tariffs. Although the market gained some momentum in the latter half of the year, it was insufficient to surpass the S$699 million recorded in 2024.
Even with the market slowdown, shophouse prices generally increased in the past year. Average prices in Districts 14 and 15, which include the heritage areas of Geylang, Katong, and Joo Chiat, rose by 8.5% year-on-year to S$3,817 per square foot (psf) on land area in 2025. Similarly, shophouse prices in Districts 7 and 8, encompassing Little India, Bugis, and Bencoolen, grew by 8.2% year-on-year to S$5,861 psf on land area.
Little India's strong performance is further emphasized by its leading position in shophouse sales during the final quarter of 2025. The district recorded seven transactions totaling S$46.3 million in that period. This occurred even as the overall market experienced a "seasonal lull," with island-wide sales decreasing to 22 units, a 21.4% drop from the previous quarter.
The appeal of shophouses in Little India is likely due to a combination of factors, including their heritage value, freehold tenure, and potential for rental income. The area's strong foot traffic, vibrant cultural scene, and popularity with tourists contribute to its attractiveness for businesses such as food and beverage outlets, as well as hospitality services. The absence of additional buyer stamp duty (ABSD) for commercial property purchases also makes shophouses an appealing investment, particularly for high-net-worth individuals seeking stable returns and long-term capital appreciation.
Despite the challenges faced by the broader shophouse market, Little India's resilience demonstrates the enduring appeal of conservation shophouses in prime locations. These properties are viewed not only as nostalgic assets but also as strategic investments that blend cultural value with practical benefits for long-term wealth preservation.