Shophouse vs Terrace House vs HDB Shop: What's the Difference?

Short answer

A shophouse is a terraced building designed with a shop below and dwelling above, often under URA conservation. A terrace house is a row-house type used purely as a home. An HDB shop is a commercial unit in an HDB estate, governed by HDB leases and rules rather than URA conservation.

Last reviewed November 2026. Rules and figures change; confirm with the named agency before acting.

Side-by-side comparison

	Shophouse	Terrace house	HDB shop
Typical design	Shop below, home above, five-foot way	Row house for living	Shop unit in an HDB block
Main regulator	URA (and SLA for state land)	URA	HDB
Tenure	Varies: freehold or leasehold	Varies	Leasehold via HDB
Conservation	Many are conserved	Some are conserved	Generally not
Use	Per approved use, often commercial/residential	Residential	Commercial, with HDB rules

Perspective illustration of a shophouse five-foot way that distinguishes shophouses from ordinary terrace houses — Five-foot ways define shophouses

Why this affects buyers

Tenure, approved use and regulator control what you can do with the property and how it is financed and taxed. Always verify each point for the specific address.

For HDB shops see our HDB shophouses guide, including living quarters in HDB premises.

Illustration of a row of terrace houses used as homes in Singapore — Terrace houses are homes

Illustration of a ground-floor commercial strip representing an HDB shop unit — HDB shops sit in HDB estates

Sources

General information only, not legal, planning or financial advice. Looking to buy or lease? See HDB shophouses or shophouses for rent.

Frequently Asked Questions

Is an HDB shop a shophouse?+

In everyday use people sometimes call them shophouses, but they are HDB commercial units, not typically conserved shophouses. HDB sets the rules.

Are all terrace houses conservation buildings?+

No. Only those designated under URA's conservation programme are conserved.

Which is better to live in?+

It depends on approved use. A terrace house is clearly residential; a shophouse or HDB shop needs a check on whether residential use is permitted.