The development will house residential units, the new Hougang bus interchange and a town plaza (Photo: EdgeProp Landlens)
A consortium comprising CapitaLand Integrated Commercial Trust (CICT), CapitaLand Development and UOL Group has been awarded the tender for the Hougang Central, 99-year leasehold mixed-use Government Land Sales (GLS) site for about $1.5 billion, or a land rate of $1,179 psf per plot ratio (psf ppr).
Their bid had been the highest out of three for the plot, with the other bids coming in at $1.47 billion ($1,155 psf ppr) from Sim Lian Group and $1.4 billion ($1,100 psf ppr) submitted Frasers Property, Sekisui House and Lum Chang.
CICT will develop and fully own the commercial component. It will feature about 300,000 sq ft of net lettable space for retail and lifestyle concepts, making it the largest mall in Hougang, alongside about 830 residential units to be developed by CapitaLand Development and UOL in a 50:50 joint venture. Completion is targeted for around 2030 or 2031.
The mixed-use, 99-year leasehold plot, with a site area of 504,820 sq ft, is the first GLS parcel in the Hougang area since 2019. The upcoming development is set to play a transformative role in the precinct, anchoring the next phase of growth in the area, CICT said in an announcement.
The project’s long-term prospects will be supported by Hougang’s sizable population and strong connectivity to surrounding mature estates such as Kovan, Sengkang, Serangoon and Punggol, CICT added.
Hougang ranks among Singapore’s top 10 most populous residential zones, yet private retail space per capita remains well below the national average, pointing to the area’s untapped long-term potential.
The integrated development will be directly connected to Hougang MRT Station, the new Hougang bus interchange and a new town plaza, reinforcing its role as a major civic and transport node. A planned link to the Cross Island Line by 2030 is expected to further enhance accessibility.
The project will mark a milestone for CICT as it expands its retail footprint into Singapore’s northeast region while reinforcing its Singapore-centric strategy.
CICT expects to achieve a yield on cost of over 5% by participating at the development stage, which compares favourably with recent transactions of operating assets in the market, said its manager’s CEO and executive director, Tan Choon Siong.
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