\nIn streets like Haji Lane in Kampong Gelam, photo booths and souvenir shops have sprung up, replacing boutiques and other small retailers.<\/p>\n
PHOTO: SHINTARO TAY<\/p>\n<\/figcaption><\/figure>\n
In the backdrop of the changes is the rising value of shophouses in Kampong Gelam, and demand to buy or rent them \u2013 due in part to the area\u2019s unique history and character. <\/p>\n
Shophouse sales in the area rose to 22 transactions in 2022 \u2013 more than double the 10 the year before \u2013 before falling to an average of six transactions a year between 2023 and 2025.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cAs a result, the market in 2024 was softer than 2023, and it was even weaker in 2025,\u201d he said.<\/p>\n
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. <\/p>\n
Local buyers accounted for around three-quarters of transactions between 2020 and 2025, it said.<\/p>\n
Checks by ST showed that 78 per cent of shophouse buyers in District 7 \u2013 the Beach Road and Bugis areas, which include Kampong Gelam \u2013 were companies, which can be local or foreign entities.<\/p>\n
Individual buyers \u2013 all either Singaporean or Chinese nationals \u2013 accounted for the rest. Chinese buyers accounted for two shophouse sales \u2013 one in 2020 and the other in 2023. <\/p>\n
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.<\/p>\n
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 \u2013 from $5 psf in 2020 to $6.50 psf in 2025.<\/p>\n\nIn Kampong Gelam, median rents were $4.71 psf in 2020, but went up about 16 per cent each year from 2022 to 2024.<\/p>\n
In 2024, the median rent peaked at $6.88 psf, before dipping to $6.19 psf in 2025.<\/p>\n
Median rents in busier streets can be much higher. In Haji Lane, a popular tourist destination, median rent stood at $12.39 psf in 2024, before it slid to $9.59 psf in 2025.<\/p>\n\nChecks on real estate website CommercialGuru on April 8 showed shophouse units in Kampong Gelam listed with asking rents ranging from $4,500 to $35,000 a month.<\/p>\n
Mr Iszahar Tambunan, the third-generation owner of nasi padang restaurant Sabar Menanti, said his rent has tripled over the last 10 years.<\/p>\n
The shop, which has called Kampong Gelam home since the 1940s, has moved three times over the years, due in part to rent hikes, the former ship broker said.<\/p>\n
Several businesses also told ST that a tenant in the area has been aggressively outbidding existing tenants with expiring leases, before subletting the units at much higher rates.<\/p>\n
\u201cIn November, someone came to my shop pretending to look at art but instead\u2026 they kept asking about rent… when my lease is due, how much is my rent,\u201d said Mr Lim Chiao Woon, who runs Mr Lim\u2019s Shop of Visual Treasures, an art gallery in Haji Lane. \u201cI found it very unusual.\u201d<\/p>\n
New owners typically charge higher rents as they bought the property at a high price, said property agent Danny Ee, from real estate agency Everton Estate.<\/p>\n
He has come across some who seek to rent to businesses that are in line with Kampong Gelam\u2019s heritage.<\/p>\n
\u201cBut if the unit isn\u2019t rented out for a few months, they would have to take a tenant that can meet the asking rent,\u201d he added.<\/p>\n
Higher rents could also be propped up by limits on the number of shophouse units approved for use as restaurants and bars, said real estate agent Daryl Ng from ERA Realty.<\/p>\n
He estimated that such units can be rented out for 30 per cent to 50 per cent more than others in the area.<\/p>\n
Another issue that has caused some consternation is the management of wakaf properties in the area. A wakaf is an Islamic religious endowment comprising land or assets bequeathed by Muslims for religious or charitable purposes.<\/p>\n
In Kampong Gelam, 26 shophouses are on wakaf land and managed by the Islamic Religious Council of Singapore (MUIS).<\/p>\n
In February, MUIS responded to public concern over its management of such properties. It defended its practice of charging tenants rent at market rates, saying that by doing so, wakaf properties can keep generating income for the causes they support.<\/p>\n
At one time, Malaysian tourists would visit Sultan Mosque \u2013 a national monument \u2013 and spend time in the area, Mr Iszahar said. <\/p>\n
These days, the area has become popular with a wider swathe of tourists from various nationalities, and has also become a hot spot for youth, with the retail mix evolving in part to serve them. <\/p>\n\n\u201cWhile that brings footfall, it doesn\u2019t always translate into meaningful engagement with the heritage businesses that give the area its identity in the first place,\u201d said Ms Oniatta Effendi, founder of batik retailer Baju by Oniatta and Galeri Tokokita in North Bridge Road. <\/p>\n