Shophouse - History and Use

History and Use

The shophouse evolved from the late 18th century during the colonial era. After the colonial era, shophouses became old and dilapidated, leading to a fraction of them abandoned or razed (by demolition work or, on occasions, fire). Singapore's Land Acquisition Act (Act) for urban development during the early 1960s, and amended in 1973, affected a great many owners of shophouses and worked a significant compensatory unfairness upon them when their shophouses were seized in redevelopment efforts.

Many shophouses in Singapore that escaped the draconian effects of the Act have now undergone a revival of sorts, with some restored and renovated to house theatres, budget hotels and tea houses. Some shophouses are now considered architectural landmarks and have substantially increased in value, for example, in 2011 in Singapore, two of every three shophouse units sold for between S$1.7-$5.5 million (US$1.4-$4.4 million), while larger units sold for between S$10-$12.5 million (US$8-$10 million), a sharp increase from 2010, while average per-square-foot prices increased 21 percent from 2010. The median price in Singapore in 2011 was 74 percent higher than in 2007. In 2012 in Penang, the cost of buying a pre-World War II shophouse in George Town reached RM2,000 per square foot (US$660), equivalent to the price of the most expensive Kuala Lumpur city centre condominium units.