Zoning explained: What every shophouse buyer should know

Illustration showing regions of Singapore

When it comes to shophouses, few topics confuse buyers more than zoning. It sounds technical, but zoning is really just the framework that dictates what you can and cannot do with a property. Understanding it clearly is essential before making any investment move.

Commercial, residential, or mixed use?

At its simplest, zoning divides shophouses into three main categories: commercial, residential, or mixed use. A purely commercial shophouse typically sits along bustling stretches and can be rented out to businesses such as cafés, retail stores, or offices. Residential shophouses, on the other hand, are intended strictly for living, often nestled within quieter neighbourhoods. 

Mixed-use zoning offers the most flexibility, allowing owners to live upstairs while operating a business downstairs. Each type comes with different rent potential and buyer appeal, so knowing which one you’re looking at is the first step to understanding its value.

What zoning means for renovation and leasing

Zoning doesn’t just affect the tenant mix, but also shapes how much freedom you have in renovations. A commercial shophouse may allow you to reconfigure layouts to suit a business, while residential zoning often comes with tighter guidelines to preserve livability and neighbourhood character. 

If you’re eyeing a heritage unit under URA conservation, approvals become even more critical, since everything from the façade to internal staircases may be protected. Leasing is also tied to zoning: you cannot simply rent a residential shophouse to a restaurant, no matter how attractive the offer might seem.

Read the URA Master Plan

Finally, zoning isn’t static. The Urban Redevelopment Authority’s Master Plan outlines Singapore’s long-term vision for land use, and changes in zoning can unlock entirely new opportunities. 

Row of shophouses in Club Street (Image credit: Fiona Lam/Business Times, 2022)

A quiet stretch today may be rezoned for more commercial activity tomorrow, while future MRT lines or redevelopment plans could drastically shift tenant demand. Investors who take time to study the Master Plan gain an edge, spotting neighbourhoods poised for growth before the wider market catches on.

Zoning may not be the most glamorous part of shophouse investing, but it is one of the most decisive. It governs what you can do, who you can sell to, and how your property might evolve with Singapore’s urban landscape. 

Whether you’re planning to run a café, secure long-term rental income, or pass down a family legacy, understanding zoning ensures your strategy aligns with reality.

Not sure which zoning fits your investment goals? Talk to PropNex Shophouse Elites team  today to navigate regulations with confidence.