CONSERVATION SHOPHOUSE AS AN INVESTMENT A CASE STUDY ON CHINATOWN

Abstract

Conservation shophouse is an important building type in Singapore's architectural heritage. Besides having rich historical and aesthetic value, shophouse also has investment value. This has signaled to the investors that it has potential as an investment property. The aim of this study is to examine the factors affecting the demand for conservation shophouses as an investment. A further study was conducted to determine the investors' attitude towards this segment of the property market. The focus was on the one thousand one hundred and sixty eight conservation shophouses in Chinatown Historic District. Investor^ are most concerned with the investment performance of the conservation shophouses. Besides that, the physical attributes of the shophouses like location and accessibility also ranked highly among them. However the factors peculiar to conservation shophouses like conservation status and unique architectural design were less important in the hearts of the investor. Majority of the investors are only prepared to hold on to their shophouse investments for a period of not more than 5 years, reflecting a short to medium term investment horizon. The sitting tenants of the shophouses are a potential source of demand for conservation shophouses. They have shown more enthusiasm in buying shophouses as compared with the owner-occupier. There are also strong associations between the age, occupancy type, use type and ethnic group of the occupants with their intention to invest in shophouses.