🏛️ Where to Park Your Money After ABSD: Why Conservation Shophouses Are a Low-Risk, High-Return Asset
- Vincent Ow
- May 12
- 3 min read
Updated: 1 day ago
With the increase in Additional Buyer’s Stamp Duty (ABSD) in Singapore, many investors are finding themselves priced out of the traditional residential market. For those seeking to preserve and grow their wealth, the question now is: Where can I still invest without incurring ABSD, while maintaining strong returns and low risk?
Why Shophouses Stand Out as Investor First Choice
Unlike private residential properties, conservation shophouses fall under commercial zoning, meaning no ABSD or Seller’s Stamp Duty (SSD) applies. This makes them highly attractive from a tax efficiency standpoint, especially for high-net-worth individuals and family offices managing cross-border wealth.
But it’s not just about tax savings — it’s about value and long-term stability. Compared to many other property types, shophouses offer a relatively low-risk, high-return investment profile that continues to attract serious capital.
Asset Type | Return Potential | Risk Level |
Shophouses | High - Strong Demand | Low- with due diligence |
Strata Offices | Moderate | Medium |
Industrial Units | Moderate | Medium-High |
Overseas Properties | Varies | High |
Retail Shops | Moderate | Medium-High |
5 Reasons Why Shophouses Are a Low-Risk, High-Return Investment
1. Freehold Ownership with Scarcity Value - Low Risk
Many conservation shophouses are freehold, offering perpetual ownership — a rare commodity in land-scarce Singapore. With strict conservation guidelines, supply is permanently limited, making every unit a rare asset.
2. Strong Capital Appreciation - High Return
Prime districts like Duxton, Tanjong Pagar, Kampong Glam, and Bugis have seen prices double or triple over the past decade. In some cases, deals have reached over $12,000 psf in District 1 — a testament to their long-term capital growth potential. ( Up coming topics regards to the shophouses capital appreciation )
3. Consistent Rental Demand - Low Risk
These properties often host popular F&B outlets, boutique offices, lifestyle concepts, and even co-living spaces — all of which thrive in high-traffic urban areas. Well-renovated units can command premium rental yields from commercial tenants, with low vacancy rates.
4. Safe Haven Asset - Low Risk
Shophouses are increasingly viewed as a wealth preservation tool. Foreign investors, including Chinese and Indonesian family offices, are drawn to them due to Singapore’s political stability, clear legal framework, and strong rule of law, follow the rich smart investor you can never goes wrong.
5. ABSD-Free with Long-Term Upside - Low Risk
Because they are commercial, there is no Additional Buyer’s Stamp Duty — allowing you to maximize your capital instead of paying tax upfront. Investors can use corporate structures for efficient asset planning, including succession.
Conclusion
In today’s high-tax property landscape, especially with hefty ABSD rates, investors are seeking smarter ways to grow their wealth without compromising on value or stability. Singapore conservation shophouses offer a rare blend of historical charm, limited supply, and strong rental potential — making them a resilient, low-risk, and high-return asset.
Whether you're looking to preserve capital, enjoy long-term appreciation, or diversify your portfolio, these heritage properties present a compelling opportunity beyond traditional residential assets. With the right strategy and guidance, your next winning investment might just be behind a conserved façade.
Ready to Explore Conservation Shophouse Investment?
Unlike any other property investment, navigating the shophouse market takes expertise — from understanding zoning laws to how the performance of which district and selecting high-growth districts
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