CapitaLand–UOL’s $1.5 Billion Hougang Central Bid May Put Future Prices Above $2,500 PSF

A consortium of developers comprising CapitaLand Development, CapitaLand Integrated Commercial Trust, and UOL Group have submitted the top bid of $1.5 billion for a mixed-use government land sale (GLS) site in District 19. The bid price translates to $1,179 psf per plot ratio (ppr).

The tender for the 504,820 sq ft site, which is located between Hougang Central and Hougang Avenue 10, closed on Dec 16. The 99-year leasehold site is zoned for ‘commercial and residential use’, with a gross floor area of 1.27 million sq ft.

At the close of the tender, the Hougang Central GLS site attracted three bids. The other bidders were Sim Lian Group which put in a $1.47 billion ($1,155 psf ppr) bid, as well as another consortium of developers comprising Frasers Property, Sekisui House, and Lum Chang, who jointly submitted a $1.4 billion ($1,100 psf ppr) bid for the site.

CapitaLand-UOL Group’s bid was just over 2.1% higher than the $1.47 billion bid from Sim Lian Group.

Marcus Chu, CEO of ERA Singapore, says that while the land rate of $1,179 psf ppr may seem modest compared to other recently awarded GLS sites this year, this is mainly due to the large land size.

CapitaLand and UOL’s bid for the Hougang GLS site also trumps the $1.2 billion ($885 psf ppr) bid for a mixed-use GLS site in Tampines Avenue 11, which was awarded to a consortium of developers comprising UOL Group, Singapore Land, and CapitaLand Development in June 2023. The site was launched as the 1,193-unit Parktown Residence in February.

“Projects with doorstep access to MRT stations have traditionally been top performers. This pattern persisted in 2025, as shown by Springleaf Residence and Parktown Residence, which recorded strong initial take-up rates of 92% (870 out of 941 units) and 87% (1,041 out of 1,193 units) respectively,” says Chu, and adds that these sales results highlight persistent buyer demand for well-connected homes.

New mixed-use development to anchor growth of Hougang precinct

The new mixed-use development is expected to comprise about 830 residential units and 300,000 sq ft of net lettable area for retail and lifestyle offerings, making it the largest mall in Hougang when it is completed.

In a statement issued after the close of the tender, CapitaLand and UOL say that if they are awarded the site, the residential component will be jointly developed by UOL Group and CapitaLand, while CapitaLand Integrated Commercial Trust will develop and retain full ownership of the commercial component.

The developers add that their plans for the new mixed-use development will see it linked to the upcoming Hougang Central Integrated Transport Hub and the construction of a new town plaza.

The GLS site is above Hougang MRT station on the North-East Line and the MRT station will become an interchange connected to the Cross Island Line when it is operational in 2030. The new mixed-use development will also be close to Punggol Community Club, Hougang Sports Centre, and Punggol Park.

Several primary schools are also in the vicinity, including CHIJ Our Lady of Nativity, Holy Innocent’s Primary School, Montfort Junior School, Punggol Primary School, and Yio Chu Kang Primary School.

Pent-up upgrader demand in Hougang

Justin Quek, deputy group CEO of Realion (OrangeTee & ETC) Group says that the new development will likely benefit from pent-up demand for new private residential units in Hougang.

The area has not seen a new launch since The Florence Residences, a 1,410-unit project along Hougang Avenue 2, hit the market in 2019, and the 1,472-unit Riverfront Residences that launched in 2018. Before that, a GLS site at Upper Serangoon Road was developed into the 395-unit Stars of Kovan which launched in 2016.

Quek also points out that HDB resale prices for four- and five-room flats in Hougang, that are also less than 20 years old, have reached a median price of $675,000 and $830,000, respectively over the first 11 months of this year. This price growth may support the pool of HDB upgraders in Hougang, he says.

Overall, the top bid for this mixed-use GLS site in Hougang is not overly bullish, says Wong Siew Ying, Head of Research and Content at PropNex. She adds that some recent GLS residential plots without a commercial component in the OCR have garnered land rates of more than $1,300 psf ppr.

“That the large Hougang Central plot garnered three bids is a testament to the appeal of the plot among developers. In our view, the mixed-use project to be built on this site has the makings of what may be one of the best-sellers,” she says citing its excellent locational attributes and proximity to amenities, transport links, and schools.

At a top bid land rate of about $1,179 psf ppr, she estimates that the average selling price of the new development may potentially be above $2,500 psf.