The Hougang Central commercial and residential site can yield around 830 homes (Image: Google)
Singapore’s Housing and Development Board on Wednesday awarded a residential and commercial site to a consortium of UOL and CapitaLand affiliates after they made the top bid of S$1.5 billion ($1.1 billion) for the plot in the city-state’s northeast.
The site at Hougang Central spans 504,820 square feet (46,899 square metres) and can yield more than 1.2 million square feet of gross floor area, with the winning bid equating to S$1,179 ($916) per square foot of built area. UOL and CapitaLand Development will jointly develop the residential component for sale, while SGX-listed CapitaLand Integrated Commercial Trust will develop and retain full ownership of the commercial component.
For the first Government Land Sales site released in the Hougang area since 2019, the consortium plans to transform the site into a mixed-use development integrated with the new Hougang bus interchange and a town plaza.
“It is set to become a major civic hub for community events and activities, with a sheltered public event space and F&B offerings that add to the vibrancy of the area,” the companies said last month after the tender’s closing. “With around 830 residential units and about 300,000 square feet 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.”
More MRT Links
Located in a mature housing estate and integrated with Hougang MRT station, Hougang Central is expected to gain from an additional direct connection to the Cross Island MRT line by 2030. The site is within walking distance of the Punggol Community Club, Hougang Sports Centre and Punggol Park, with established primary schools located within a 2 kilometre (1.2 mile) radius.
Liam Wee Sin, Group Chief Executive of UOL (Getty Images)
The 99-year leasehold plot at Hougang Avenue 10 drew three bids in total, including S$1.47 billion (S$1,155 per square foot) from private developer Sim Lian Group and S$1.4 billion (S$1,101) from a Frasers Property-led consortium.
Those offers beat analyst expectations after mixed-use projects near suburban transport nodes at Tampines Street 94 and Tampines Avenue 11 previously received top bids of S$1,004 and S$884 per square foot of accommodation.
In a statement issued Wednesday, UOL said the acquisition of the site would enable the group to replenish its land bank for residential development in Singapore and would be financed principally from bank borrowings and shareholders’ loans.
Northeastern Promises
The tender award comes after the Urban Redevelopment Authority in September granted another northeastern site in the Serangoon area to a joint venture of local builder Sing Holdings and Malaysia’s Sunway Group.
The JV entered the top bid of S$623.9 million for the second Chuan Grove site, eclipsing Chinese state-backed builder COLI’s runner-up bid of S$606.1 million. The remaining bidders were two tie-ups led by Sim Lian Group and Kwek Leng Beng’s Hong Leong Holdings, as well as Japura Development, a unit linked to Li Ka-shing’s CK Asset Holdings.
The winning bid translated to S$1,331 per square foot of accommodation for the plot, which can yield 505 homes. The same Sing-Sunway tandem was awarded the adjoining first Chuan Grove site last July for S$1,376 per square foot over six competing bids, with that larger parcel capable of furnishing 555 homes.
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