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 tender for the Hougang Central Government Land Sales (GLS) site, offering a 99-year leasehold for mixed-use development, closed on December 16. The highest bid was submitted at $1.5 billion, equivalent to $1,179 per square foot per plot ratio (psf ppr) by a consortium comprising UOL Group, CapitaLand Development, and CapitaLand Integrated Commercial Trust.
This substantial investment signals a strong confidence in the potential of the site which spans approximately 504,825 square feet, primarily zoned for commercial and residential use. The plan includes about 835 residential units along with a significant commercial component of approximately 430,556 square feet.
Strategically located, the site integrates seamlessly with Hougang MRT Station and is poised to become a central hub in Hougang Town, serving as a civic centre for community events, encompassing public event spaces and various food and beverage options. The project is expected to house the largest mall in Hougang, supporting the town’s ongoing expansion and vibrancy.
With the involvement of CapitaLand and UOL Group, who are no strangers to large-scale integrated projects, the development will include a commercial component managed by CapitaLand Integrated Commercial Trust, which marks their first venture in Singapore’s northeastern region. This project aims to solidify their reputation for delivering high-quality commercial real estate.
Direct comparisons like the Sembawang Drive EC project, also underline the increasing developer interest and confidence in suburban mixed-use developments, suggesting a robust private housing market outlook.
The competitive nature of the bids, with a narrow gap of 2.1% between the two highest offers, underscores the shared optimism among developers regarding the site’s future. Marcus Chu, CEO of ERA Singapore, reflected on the potential demand from both Housing Development Board (HDB) upgraders and those looking to downsize from landed homes, driven by the lack of new launches in the Hougang area over the past decade.
The recent upward trend in land bids, especially for sites that offer both residential and commercial opportunities, was noted by Wong Siew Ying, Head of Research and Content at PropNex. She mentions previous land sales like the ones at Chencharu Close, Tampines Street 94, and Tampines Avenue 11, highlighting a competitive market climate with increasing land costs.
Local amenities such as Hougang Stadium, sports centres, and nearby parks, along with schools like Montfort Junior School, further enhance the residential appeal of the upcoming project.
Lastly, industry experts predict that the selling price for residences within the new development could range between $2,500 to $2,600 psf, indicating a premium positioning due to its unique integration with a transport hub and comprehensive community facilities.