CapitaLand, UOL consortium puts in top bid of $1.5b for Hougang Central mega mixed-use project

SINGAPORE – A large mixed-use site in Hougang Central drew three bids when its tender closed on Dec 16, with a joint venture between CapitaLand and UOL Group companies putting in the top bid of $1.5 billion or $1,179 per sq ft per plot (psf ppr) ratio.

Bids came in above analysts’ expectations of $800 to $1,000 psf ppr for the 4.7ha site that will house an integrated project with 835 residential units and over 430,000 sq ft of commercial space – nearly double the size of Hougang Mall.

Part of the project will be located above the existing Hougang MRT station and must also be integrated with a bus interchange.

UOL, Singapore Land and CapitaLand had earlier clinched another massive mixed-use project site in Tampines for $1.21 billion or $885 psf ppr in 2023. The 1,193-unit project, Parktown Residence, was marketed in February and

sold over 87 per cent of units

at an average of $2,360 psf on its launch weekend.

The top bid for the Hougang site, submitted by Horizon Residential (comprising CapitaLand Development, UOL, Singapore Land and Kheng Leong) and Horizon Commercial (a CapitaLand Integrated Commercial Trust, or CICT, vehicle), came in 2 per cent higher than the next-highest bid of $1.47 billion or $1,155 psf ppr, from the Sim Lian group.

A Frasers Property-led consortium, including Sekisui House and Lum Chang, came third, with a bid of $1.4 billion or $1,101 psf ppr.

Based on the land rate of $1,179 psf ppr, analysts expect the new homes in the Hougang Central project to be priced at $2,500 to $2,600 psf. The average selling price could be even higher, thanks to its facilities, amenities and accessibility, said Knight Frank research head Leonard Tay.

Caveats data shows that the median price of a new non-landed private home, excluding executive condominiums, in the Hougang planning area was $2,075 psf in the past year, while that of resale private homes was $1,539 psf.

In a statement on Dec 16, the CapitaLand-UOL joint venture said that if it is awarded the tender, the 99-year leasehold site will be developed by UOL and CapitaLand Development in a 50-50 split.

The group said it will draw on its combined experience to transform the mixed-use development into a major civic hub for community events and activities, with a sheltered public event space and food-and-beverage options.

“With around 830 residential units and about 300,000 sq ft of net lettable area for retail and lifestyle offerings, the project will be the largest mall in Hougang and a key anchor for future growth of the precinct,” the consortium added.

It is also the Hougang neighbourhood’s first new launch since the 1,410-unit The Florence Residences condominium in 2019.

Mr Tan Choon Siang, chief executive officer and executive director of CICT’s manager, said the project will be the trust’s first in the north-eastern part of Singapore.

“This will deepen CICT’s exposure to Singapore and strengthen our positioning as the proxy for high-quality commercial real estate in Singapore,” he said.

Market watchers were not surprised by the modest turnout for the Hougang Central tender, given its considerable size and complex development requirements.

“The relatively low response indicates developers’ cautious and strategic approach to creating a future landmark project in Hougang, and does not suggest weak sentiment,” said Mr Marcus Chu, ERA Singapore chief executive.

PropNex head of research and content Wong Siew Ying noted that large government land sales (GLS) programme plots with a land price above $1 billion tended to draw fewer bids.

For instance, the Chencharu Close mixed-use GLS site attracted three bids, with the top offer just over $1 billion when its tender closed in September. Another land parcel in Zion Road (Parcel A) drew a single bid of $1.1 billion when its tender closed in April 2024.

“That the large Hougang Central plot garnered three bids is a testament to the appeal of the plot among developers,” she added.

Huttons Asia chief executive Mark Yip also noted that there were nearly 60,000 dwelling units in the town as at end-March, presenting a substantial pool of public housing upgraders.

Mr Justin Quek, deputy group chief executive of Realion (OrangeTee & ETC) Group, said resale prices of four-room and five-room public homes under 20 years old in Hougang have reached median levels of $675,000 and $830,000 respectively. The prices support upgraders looking to buy private property.

The retail mall in the upcoming mixed-use project could also be hived off into a real estate investment trust (Reit) in the future, since “there will be few commercial Reits hungry for yield-accreditive assets”, said Mr Nicholas Mak, Mogul.sg’s chief research officer.

Mr Mohan Sandrasegeran, Singapore Realtors head of research and data analytics, said the GLS programme for the first half of 2026 has only one integrated site in Bayshore Road, which is also the only site with a commercial component.

“Developers may have factored in the limited near-term visibility of integrated site supply,” he said.

“The Hougang Central parcel may have been viewed as a timely and relatively rare opportunity, prompting developers with relevant scale and balance sheet strength to submit committed bids rather than speculative ones.”

THE BUSINESS TIMES