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Singapore's iconic shophouses are a unique blend of architectural heritage and modern functionality. While both HDB and private shophouses share some similarities, they have distinct characteristics that set them apart. Let's explore the key differences between these two types of shophouses in Singapore in the resale market.

Ownership and Eligibility
 

HDB Shophouses

• Can be purchased by Singaporeans, Permanent Residents, and even foreigners

• No restrictions on ownership for commercial HDB shophouse

• Individuals must be above 21 years of age and not undischarged bankrupts

• Private Limited Companies are eligible to purchase HDB shophouses
   

Private Shophouses

• Commercial private shophouses have no ownership restrictions

• Residential and mixed-use private shophouses are restricted to Singaporeans and PRs

• Foreigners require special approval from the Land Dealings Approval Unit (LDAU) to purchase residential private shophouses

Architectural Features
 

HDB Shophouses

• Modern, functional design

• Typically blend with surrounding HDB blocks

• Usually have commercial spaces on the ground floor and residential units above
   

Private Shophouses

• Often feature distinctive architectural elements like ornate facades, ceramic tiles, and intricate carvings

• May include traditional features such as air wells, courtyards, and five-foot ways

• Showcase a mix of architectural styles reflecting Singapore's cultural diversity

Location and Zoning
 

HDB Shophouses

• Found in older public housing estates

• Designed to serve everyday needs of residents

• Often host businesses like eateries, clinics, and grocery stores
   

Private Shophouses

Located in various areas, including prime districts and conservation zones

• Zoned according to URA's Master Plan:

  • Orange: Residential use (only locals can purchase)

  • Pink: Residential with first floor commercial

  • Blue: Mixed residential and commercial or full commercial (foreigners can purchase)
     

Investment Potential
 

HDB Shophouses

• Generally more affordable than private shophouses

• Provide regular monthly income from commercial tenants

• Banks can provide commercial property loans for these hybrid properties
   

Private Shophouses

• Often considered a premium investment due to scarcity and heritage value

• Commercial conservation shophouses are not subject to Additional Buyer's Stamp Duty (ABSD)

• Can offer higher potential for capital appreciation, especially in prime areas
   

Usage Flexibility
 

HDB Shophouses

• Primarily designed for small businesses and residential use

• May have restrictions on the types of businesses allowed

Private Shophouses

• Offer more flexibility in usage, especially for commercial shophouses

• Can be adapted for various purposes, including offices, boutique hotels, and high-end retail spaces
   

Heritage and Conservation
 

HDB Shophouses

• Generally not subject to conservation guidelines

• May undergo regular upgrades and renovations by HDB

Private Shophouses

• Many are protected under conservation guidelines

• Renovations must adhere to strict preservation rules, maintaining the historical character
   

In conclusion, while both HDB and private shophouses offer unique opportunities for businesses and residents, they cater to different market segments and investment strategies. HDB shophouses provide accessible options for local businesses and homeowners, while private shophouses appeal to those seeking heritage properties with potential for high-value investments. Understanding these differences is crucial for anyone considering shophouse ownership or investment in Singapore's dynamic real estate market.