Capitaland Uol Group Tops Bid Mixed Use Development Plot Hougang Central 15 Bil Bid Or 1179 Psf Ppr
Hougang Central GLS Site Attracts Top Bid in Recent Tender
The recent tender for a 99-year leasehold mixed-use site at Hougang Central has concluded with an impressive top bid of $1.5 billion, which translates to approximately $1,179 per square foot per plot ratio (psf ppr). This bid was submitted by a joint venture comprising UOL Group, CapitaLand Development (CLD), and CapitaLand Integrated Commercial Trust (CICT).
If the bid is accepted, UOL and CLD will collaborate on developing the residential segment for sale, while CICT is set to develop and maintain full ownership of the commercial component. The development is anticipated to feature around 830 residential units alongside roughly 300,000 square feet of net lettable area dedicated to retail and lifestyle purposes, positioning it as the largest mall in Hougang and a pivotal growth anchor for the area.
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According to the bidding consortium, the project aims to become a central civic hub that will host community events and activities, featuring a sheltered public event space and diverse food and beverage options to enhance the locale’s vibrancy.
Moreover, Tan Choon Siang, CEO of CICT, noted that this project marks their first venture in Singapore’s northeastern part and is expected to solidify their reputation for premium commercial real estate in the region. Wong Siew Ying, PropNex’s head of research, commented on the robust developer confidence indicated by the land rate, which surpasses those of several recent mixed-use developments in the Tampines and Chencharu areas.
Comparative Land Rates and Market Confidence
The Hougang Central site’s top bid of $1,179 psf ppr reflects a growing trend in land prices, especially for integrated developments. Wong Siew Ying highlighted that this rate is competitive but not excessively bullish, especially in comparison to some purely residential plots in the Outside Central Region (OCR) that have attracted bids over $1,300 psf ppr.
CapitaLand and UOL Group, the developers behind the successful ParkTown Residence, have shown a consistent track record with their recent launch in Tampines Street which has seen significant sales success.
Strategic Importance of Hougang Central Site
This GLS site covers over 500,000 square feet and is zoned for commercial and residential use with a potential gross floor area of 1.273 million square feet. It is advantageously positioned directly next to the Hougang MRT Station, slated to become an interchange for the North-East and Cross Island Lines by 2030, enhancing its connectivity.
Mark Yip, CEO of Huttons Asia, emphasized the strategic value of this development as the first mixed-use development integrated with a transport hub in the area, poised to cater to the substantial residential and commercial needs of Hougang Town.
The CapitaLand-UOL joint venture’s bid narrowly outdid the second-highest offer by Sim Lian Group, indicating a tightly contested tender reflective of the strong market interest and potential of the Hougang Central site. Marcus Chu, CEO of ERA Singapore, predicts the project will appeal particularly to HDB upgraders and landed homeowners looking to resize, given its prime location and comprehensive amenities.