Kampong Gelam heritage at a crossroads

Kampong Gelam heritage at a crossroads


SINGAPORE – Two centuries after Sultan Mosque was built in its heart, Kampong Gelam’s community is working to retain the district’s identity as rising rents and new retailers change its look and feel.

Longstanding tenants – among them textiles and haj goods traders – now face sharper competition from international chains, souvenir shops and massage parlours.

Rents in the area, once a gathering place for Malay/Muslim intelligentsia and pilgrims to Mecca, have gone up following an increase in investor demand for its more than 600 conserved shophouses.

Shopkeepers and others working in the community said Kampong Gelam is dealing with the tension between retaining its past and modernising. Some are working to find a middle way where it can evolve while keeping its unique character.

Mr Syed Osman Alsagoff, place director of Kampong Gelam Alliance, said recent rent hikes have forced some longstanding businesses out of the area, while others have shut down.

The alliance – a voluntary group of residents, cultural institutions, business organisations, property owners and hotels – helps to find new premises within the district for heritage restaurants at risk of being displaced.

One of these was Warong Nasi Pariaman, said to be Singapore’s oldest nasi padang shop, which closed suddenly in January and put a spotlight on the struggles of traditional trades there.

Others that have closed down or moved out in the past decade include shops selling rings or wicker and rattan baskets.

But there is no official data tracking how many of such businesses have closed.

When The Straits Times visited 228 buildings around Aliwal Street, Haji Lane and North Bridge Road, it found that compared with 10 years ago, food and beverage outlets had risen from about 17 per cent of shops to comprise nearly a quarter.

Retail shops had declined slightly from about 41 per cent to 38 per cent, and in streets like Haji Lane, photo booths and souvenir shops have sprung up, replacing boutiques and other small retailers.

“We are worried about the heritage businesses – once they’re gone, they’re gone,” Mr Syed Osman said.

Retail shops had declined slightly from about 41 per cent to 38 per cent, and in streets like Haji Lane, photo booths and souvenir shops have sprung up, replacing boutiques and other small retailers.

In streets like Haji Lane in Kampong Gelam, photo booths and souvenir shops have sprung up, replacing boutiques and other small retailers.

PHOTO: SHINTARO TAY

In the backdrop of the changes is the rising value of shophouses in Kampong Gelam, and demand to buy or rent them – due in part to the area’s unique history and character.

Shophouse sales in the area rose to 22 transactions in 2022 – more than double the 10 the year before – before falling to an average of six transactions a year between 2023 and 2025.

The most expensive sale was $23 million, or $13,821 per sq ft (psf), for a 1,664 sq ft unit in Bali Lane on a 999-year lease in August 2022.

This data includes only transactions for which caveats were lodged. Such caveats help to secure a property during a sale, but are not mandatory, meaning that more transactions could have taken place than were caveated.

Mr Alan Cheong, executive director of research and consultancy at real estate firm Savills Singapore, said foreign interest in buying shophouses has waned since late 2023, after a crackdown on money laundering that has scared off legitimate buyers.

“As a result, the market in 2024 was softer than 2023, and it was even weaker in 2025,” he said.

On April 6, 2026, the Urban Redevelopment Authority (URA) pushed back at claims circulating online that foreigners are purchasing a significant number of shophouses in the area.

Local buyers accounted for around three-quarters of transactions between 2020 and 2025, it said.

Checks by ST showed that 78 per cent of shophouse buyers in District 7 – the Beach Road and Bugis areas, which include Kampong Gelam – were companies, which can be local or foreign entities.

Individual buyers – all either Singaporean or Chinese nationals – accounted for the rest. Chinese buyers accounted for two shophouse sales – one in 2020 and the other in 2023.

Property values have continued to grow despite the softer market. The median psf sale price in Kampong Gelam increased from $3,743 psf in 2020 to $6,805 psf in 2025.

Shophouses all over Singapore have been highly sought after in recent years. Sales transactions for them stayed elevated between 2020 and 2023, with median rents for these properties rising 30 per cent across the island – from $5 psf in 2020 to $6.50 psf in 2025.



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