Written By: Henny Maherah
Who would have thought that your $1 Kopi O would be part of a multi-million real estate deal in Singapore? In January this year, a record-breaking offer of $31 million was made for a neighbourhood coffee shop in Jurong West. An identical amount was also offered for a coffee shop in Bukit Batok in 2015, while a coffee shop in Hougang was sold for $23.8 million in 2013.
What exactly is the appeal of coffee shops in heartland neighbourhoods all across Singapore?
Neighbourhood Coffee Shops: A Promising Investment
The property value of food and beverage (F&B) spaces are expected to rise due to the consistent volume of daily patrons. Even during the circuit breaker period and consequent phases, coffee shops received a steady flow of customers. Most of the patrons are local residents or passing cab hire and delivery drivers.
Integral Value of Coffee Shops in Neighbourhood Estates
Neighbourhood coffee shops, also known as hawker centres, are increasingly seen as a vital element of every heartland estate in Singapore. Offering a plethora of local delights, these coffee shops are an essential part of Saturday brunch and last-minute dinner plans.
The unwavering demand for coffee shops is not just a matter of convenience – it highlights the social culture of neighbourliness. Hawker stall owners often create a bond with regular customers. Associate Professor Lawrence Loh of the National University of Singapore Business School notes that this is more recognizable among the older generation who live in mature estates in Singapore.
The Rich Legacy of Singapore Coffee Shops
Historically, coffee shops in the past catered to working class patrons, offering an affordable alternative to expensive restaurants. Despite more dining options in shopping malls, coffee shops remain the preferred choice for value-for-money meals.
Only in a Singapore neighbourhood estate would you find a coffee shop that comes with a $31 million price tag. It’s time we appreciate how these eateries strengthen our heartland neighbourhoods.
Curious to learn more about popular neighbourhoods in Singapore? Take a tour through our Jurong West guide to find out the rich heritage behind each estate!