I may well be biased
but I would go for a shophouse every time. However, I don't have kids.
Do you mind me asking which area the potential shophouse is in? I think that would help us advise you better. A lot of them are in off-beat locations and, even forgetting about the lack of facilities, I don't think would be great for kids. They need to be able to socialise, go on playdates, etc., and you may well be ferrying them around all the time.
Also, where do they go to school/nursery? Will you drive them or will they be picked up by school buses?
Does the shophouse have a garden? Or just a courtyard? Where will your kids play?
The sensible person deep inside me says go for a condo
, but will you and your wife be unhappy there? I know I couldn't get used to apartment life after having my own house for so many years, was thoroughly miserable with the noise and lack of private outdoor space.
BTW I wouldn't worry too much about the aircon, especially if the shophouse has ceiling fans. We only use aircon to go to sleep with, and try not to use it all-year round. High ceilings are great.
edited for typo