Capitaland Uol Group Tops Bid Mixed Use Development Plot Hougang Central 15 Bil Bid Or 1179 Psf Ppr
The recent closure of the tender for the mixed-use site at Hougang Central has generated significant interest with a top bid of $1.5 billion, indicating a strong market sentiment. This site, with a 99-year leasehold, attracted three substantial bids, with the highest bid translating to $1,179 per square foot per plot ratio (psf ppr). The bidding was led by a consortium comprising UOL Group, CapitaLand Development (CLD), and CapitaLand Integrated Commercial Trust (CICT).
The consortium plans to develop this site into a vibrant community hub. The residential component will be handled by UOL and CLD while CICT will take on the commercial segment, planning to maintain full ownership upon completion. This development is expected to feature approximately 830 residential units alongside 300,000 square feet of retail and lifestyle space, making it the largest mall in Hougang and a pivotal development for the area’s future growth.
Bayshore Drive Condo is another notable development, reflecting the ongoing expansion and demand in Singapore’s residential and commercial sectors, much like the new project at Hougang Central which integrates residential living with commercial amenities and excellent transport links.
Strategic Importance of the Hougang Central Site
This site covers an area of 504,825 square feet and is zoned for commercial and residential use. It can potentially accommodate around 835 residential units and 430,556 square feet of commercial space. Its strategic location, directly connected to Hougang MRT Station, an upcoming interchange for the North-East and Cross Island Lines, positions it as a cornerstone for growth in the region.
Mark Yip, CEO of Huttons Asia, emphasized the significance of this development, noting that it is the first mixed-use project integrated with a transport hub in Hougang, which is among the largest towns along the North-East Line.
Market Confidence and Developer Interest
The narrow margin between the top two bids, with the CapitaLand-UOL joint venture slightly outbidding the second-highest offer by 2.06%, suggests a shared optimism among developers regarding the potential of the Hougang Central site. Marcus Chu, CEO of ERA Singapore, highlighted the project’s ability to meet the pent-up demand in the region, appealing to both HDB upgraders and landed right-sizers.
Comparatively, the land rate for this project surpasses those of other recent mixed-use sites, an observation pointed out by Wong Siew Ying, head of research at PropNex. This trend underscores the growing developer confidence, especially in integrated developments which tend to fetch higher market valuations.
It has been over a decade since the last private residential GLS plot was launched in Hougang, which positions the current project as highly anticipated in the housing market. The last such development was the Stars of Kovan, completed in 2019, which underscores the scarcity and hence the high potential of the new development at Hougang Central.
Outlook and Expectations
Experts like Mohan Sandrasegeran predict that the selling prices for the new residential units could range between $2,500 to $2,600 psf, given the unique attributes of the site being a mixed-use development integrated with a major transport hub. This pricing expectation is supported by the strong foundation of current market dynamics and the distinct nature of the project.