Capitaland Uol Group Tops Bid Mixed Use Development Plot Hougang Central 15 Bil Bid Or 1179 Psf Ppr
Hougang Central Gears Up for a Major Mixed-use Development
The recent closure of the tender for the 99-year leasehold site at Hougang Central on December 16 recorded three competitive bids, with the highest at $1.5 billion, translating to $1,179 per square foot per plot ratio (psf ppr). This bid was presented by a consortium consisting of UOL Group, CapitaLand Development (CLD), and CapitaLand Integrated Commercial Trust (CICT).
Upon successful acquisition, the consortium plans a dual development strategy where UOL and CLD will manage the residential components, and CICT will oversee the full development and ownership of the commercial segments. Designed as a key community and civic hub, the site will feature approximately 830 residential units and offer around 300,000 square feet of net lettable retail and lifestyle space, making it the largest mall in Hougang.
The strategic location of the site, directly connected to Hougang MRT Station and a future interchange for the North-East and Cross Island Lines, enhances its accessibility and potential as a major residential and commercial epicenter by 2030. Hougang, being one of the largest towns along the North-East Line, positions this project as a pivotal development.
Comparison with other projects in the region, such as Miltonia Close EC, highlights the increasing interest and confidence developers have in integrated living spaces that offer both convenience and lifestyle options.
Market Confidence and Development Insights
The bidding activity for Hougang Central’s site is notably more aggressive than in other recent GLS tenders, reflecting a robust confidence from developers in the integrated residential-commercial development model. For instance, previous bids such as the Chencharu Close site and Tampines Avenue 11 plot drew lower psf ppr, underscoring Hougang Central’s premium potential. PropNex’s Head of Research, Wong Siew Ying, remarked on the strong market sentiment, particularly for developments that integrate residential living with substantial commercial amenities.
The joint developers, UOL Group and CapitaLand, are no strangers to such mixed-use projects, having successfully launched and nearly sold out the Parktown Residence at Tampines, another major development that integrates residential units with a shopping mall. Their experience and previous success likely contributed to their favorable positioning in the Hougang Central bid.
Developer’s Perspective and Future Outlook
CICT’s CEO, Tan Choon Siang, views this project as a strategic expansion into the northeastern part of Singapore, expecting it to significantly bolster their portfolio of high-quality commercial properties. ERA Singapore’s CEO, Marcus Chu, also predicts strong buyer interest from HDB upgraders and those looking to resize from landed homes, given the site’s promising attributes and its first major private residential development in Hougang in over a decade.
This new development is anticipated to set a precedent for future projects in Hougang, attracting a mix of residents and businesses, and contributing vibrantly to the area’s growth and dynamism.
