"Why should I invest in" HDB Shophouse

Commercial Shophouses are a great form of real estate investment because of a regular monthly income and greater security than investing in others.
The Residential component is another alluring factor.


Due to the costs involved in implementing 2FA, as well as the latest increase in GST, Amicus is revising the price for sending SMSes using HDBActually. With effect from 3 Jan 2024, it will cost $0.25 per SMS for messages under 160 characters, and $0.35 per SMS for messages between 161 and 306 characters. We appreciate your understanding on this matter, and remain committed to delivering secure, targeted, and value-for-money lead generation services powered by data analytics.
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Total HDB Shophouses, Offices and Commercial units


Total Sale Transactions This Year


Total Sale Transacted Value This Year


Total Rental Transactions This Year


Total Sale Transactions Last Year


Total Sale Transacted Value Last Year


Total Rental Transactions Last Year

Average Price

Average Price Over Last 3 years







HDB Shophouse

Break Down of HDB Shophouses, Offices and Commercial units

Unit level Number of Unit
01-XX 15,237
02-XX 1,441
03-XX 790
04-XX 590
05-XX 73
06-XX 51
07-XX 34
08-XX 17


Different Trade in HDB Shophouse


Key Elements

Key Elements of HDB Shophouses

HDB considers HDB Shophouse with Attached Residential Quarters as a commercial property; hence private residential property owners are eligible to purchase them. Even current HDB flat owners may do so.

Singapore Permanent Residents and foreigners face no restriction in acquiring them.

The only requirements surrounding purchases of HDB shophouses (and commercial shops) is that the individual must be above 21 years of age and is not an undischarged bankrupt. Purchases also have to be made by sole buyers.

For non-individual entities, Private Limited Companies are eligible to purchase HDB shophouses.

However, HDB ceased selling them to individual buyers from 1999. Interested individual buyers will have to source them from the open market.

Banks financing

The good news is that banks are allowed to provide commercial property loans for these hybrid properties.

Therefore, if you already have an existing home loan; taking a loan for a HDB shophouse will not be subjected to the tighter loan-to-value (LTV) ratio of a second home loan. However, note that not all banks will grant commercial loans for this type of property. Some will only grant residential loans.

Additional Buyer's Stamp Duty (ABSD)

Since ABSD is payable only on residential properties and land, so are “HDB Shophouse with Attached Residential Quarters” liable for ABSD then?

According to the Inland Revenue Authority of Singapore (IRAS), it depends on the permitted use of a building unit [IRAS, “Scope of Additional Buyer Stamp Duty (ABSD)”].

HDB considers the permitted use of the living quarters to be residential while the shop unit is commercial; ABSD is payable only on the apportioned value of the living quarters. [See IRAS e-tax Guide - Stamp Duty: Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties Revised Edition, page 20].

Property tax

Tax rates for commercial properties and owner-occupied residential properties differ.

Currently, commercial properties and non-owner-occupied housings follow a flat rate of 10% of the annual value of the property.

In contrast the owner-occupier tax uses a progressive tax structure. In other words, different tax rates apply to each tier of the annual value.

From 2014 (with the full effects to be implemented in 2015) all residential properties - whether owner-occupied or not - will follow a progressive tax structure; but with higher tax rates for the non-owner-occupied category. For the full details of the rates, go to IRAS, “Property Tax Rates”.

So which tax is applicable to a HDB Shophouse with Attached Residential Quarters?

Like for ABSD, the living quarters and commercial section of the shophouse is given separate treatments.

The commercial section is accorded the 10% tax rate, but the owner may apply for owner-occupier tax for the living quarters provided that he resides there.

Goods and Service Tax (GST)

Except for residential properties, purchases of all other types of properties from a GST-registered company are liable to GST, which is 7% now.

For HDB Shophouses with Attached Residential Quarters the commercial portion is also subject to GST, whereas the residential quarters are exempted.

To circumvent the GST payment, you can set up a GST-registered company specially for a financial transaction, termed as a Special Purpose Vehicle (SPV), to claim for a refund of the GST.