SINGAPORE: Continued interest from foreign buyers, family offices and institutional funds has sustained demand for shophouses in the first quarter of 2021, following a strong burst of buying activity at the end of last year.
Coming into a new year, investors are still keen to invest in shophouses, which are seen as defensive assets that retain value even during a downturn, said Mr Clemence Lee, senior director of capital markets for Singapore at CBRE.Specifically, Mr Lee said interest from buyers from China, Hong Kong and Malaysia, has been “growing strong” after it began picking up in the middle of last year.
“Foreign buyers also seek shophouses, as this asset offers them capital preservation and appreciation,” he added.Mr Steven Tan, senior director of investment services at Colliers, added that funds, family offices and co-living investors also continue to contribute to demand.“With the COVID-19 vaccine campaign and numbers of community cases under control, investors are optimistic of a medium- to long-term market outlook.
Like Mr Tan, Ms Sai attributed overall interest in shophouse investments to positive business sentiments, as vaccination programmes are being rolled out. “Suburban shophouses are typically more defensive as they cater predominately to the surrounding neighbourhood," he said.
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