URA defends Kampong Glam shophouse sales slump as locals dominate buyers amid foreign ownership concerns
Authorities say shophouse transactions in Kampong Glam have dropped sharply, with locals forming most buyers. The clarification follows online claims of rising foreign ownership and rent pressures threatening heritage businesses in the historic district.
- Shophouse transactions in Kampong Glam dropped by 60%, with locals comprising most buyers
- URA refutes claims of widespread foreign ownership driving up prices and rents
- Business owners report rising rents and closures despite official data showing modest increases
The Urban Redevelopment Authority (URA) has stated that shophouse sales in Kampong Glam have declined significantly in recent years, while emphasising that most buyers remain local.
In a statement issued on 6 April 2026, URA said annual transactions fell by about 60%, from an average of 15 between 2020 and 2022 to just six between 2023 and 2025.
The decline was more pronounced along Haji Lane, where transactions dropped from an average of three per year to none over the same period.
According to official data, local buyers accounted for roughly three quarters of all transactions between 2020 and 2025.
Over the past two years, only one shophouse was sold to a foreign buyer in 2024, with none recorded in 2025.
Response to foreign ownership concerns
URA’s statement was issued in response to online videos and articles suggesting that foreigners were acquiring a significant number of conserved shophouses in the district.
These claims raised concerns about rising property prices, sustainability of heritage businesses, and the preservation of Kampong Glam’s cultural identity.
URA said it was aware of the concerns and clarified that the data did not support the perception of widespread foreign ownership.
“We understand that many heritage businesses are navigating a challenging operating environment, amidst evolving market conditions and changing consumer preferences,” the authority said.
Rental pressures and differing perspectives
While official figures suggest modest rent increases, business owners have described a more difficult reality on the ground.
Government lease data indicates that median rents in Kampong Glam rose by about 2% annually, comparable to other heritage districts and below nominal GDP growth of 6.7%.
However, some tenants reported significantly higher increases.
, rents for certain units rose from around S$3,000 to nearly S$10,000 in recent years.
At least 10 shops along Haji Lane have closed over the past three years, reflecting ongoing challenges faced by retailers.
In a widely circulated social media video, a shop owner, interviewed by TikTok content creator Dargo, claimed rents had nearly doubled due to aggressive bidding, rising from around S$5,000–S$6,000 to S$11,000.
She said rents had been rising for years, even before the pandemic.
The retailer also alleged that prospective tenants had directly approached existing shops to ask when their leases would end.
“The serial subletter came to the shops and asked my staff, ‘When is your lease up?’”
She described the move as “blatant”, adding that this had led to frequent tenant turnover and the loss of niche retailers.
Shop owner claims foreign buyers driving rent surge, threatening heritage shops
Traditional trades such as songket and basket-weaving have been particularly affected, with operators struggling to remain viable.
Business owners have also raised concerns about conservation shophouses being exempt from Additional Buyer’s Stamp Duty for foreign purchasers, potentially contributing to higher property values.
The same retailer warned that new landlords without cultural ties to the area could undermine heritage preservation.
She called for stronger intervention from authorities to safeguard long-standing businesses and maintain the district’s identity.
Policy measures to preserve character
URA outlined several measures aimed at sustaining Kampong Glam’s heritage and cultural vibrancy.
Since June 2025, new souvenir shops have been disallowed in the area, alongside existing restrictions on bars, pubs, nightclubs, karaoke lounges, and western fast-food outlets.
Authorities said these controls are intended to maintain a balanced mix of businesses and prevent over-commercialisation.
An inter-agency task force has also implemented assistance schemes and programmes to support traditional trades and cultural activities.
A pilot initiative led by the Kampong Gelam Alliance seeks to retain heritage restaurants by facilitating relocation within the district for those at risk of displacement.
Broader policy and parliamentary discussion
Concerns about rising rents and foreign investment have also been raised in Parliament.
During the Committee of Supply debate on 2 March 2026, Tin Pei Ling highlighted speculation that foreign capital inflows could be pushing up commercial rents and crowding out local operators.
Separately, the closure of Warong Nasi Pariaman on 31 January sparked public debate about the sustainability of heritage businesses.
Responding in Parliament on 3 February, Senior Parliamentary Secretary for National Development Dr Syed Harun Alhabsyi said the closure was not due to rental costs.
“It was reported in the media that a representative from the family recently clarified that the closure was not related to rental issues, and we should not wrongly conclude that this was due to high rental,” he said.
Continued engagement with stakeholders
URA said it will continue reviewing policies to balance heritage preservation with economic sustainability.
The authority encouraged stakeholders to provide feedback through the Kampong Gelam Alliance and ongoing engagement channels.
“We encourage Kampong Glam stakeholders to share their feedback… This enables more coordinated and constructive dialogues,” URA said.
It added that continued public support for heritage businesses remains important in sustaining the district’s cultural identity.
