In Singapore, people often identify places by their food. In Hougang, residents around Avenue 4 and Avenue 8 will point to familiar favourites — Sin Heng Kee Porridge, Al Falah Restaurant and Heng Heng Western Food.

“Even former residents still return to eat here,” says Lewes Leeson, a realtor and associate director of Brilliance Capital who grew up in the area.

Two major coffeeshops anchor the neighbourhood. Broadway Coffeeshop at Block 682 Hougang Avenue 4 — a 4,025 sq ft unit housing 17 stalls — was acquired for $23.8 million in 2013, then a record price for a coffeeshop. Nearby, Kimly Coffeeshop at Block 684 Hougang Avenue 8 draws a steady crowd.

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“Both coffeeshops are open 24 hours, and people often gather there to eat and socialise,” says Leeson.

The area is also served by two supermarkets — FairPrice and Giant. At Block 685 sits Tong Aik Huat, an authorised Singapore Pools retailer known for selling 12 jackpot-winning tickets over the past 24 years.

The outlet regularly draws long queues, especially during the annual Toto Hong Bao Draw over Chinese New Year, which exceeded $12 million this year.

A ‘prosperous’ neighbourhood

Against this backdrop of steady footfall and deeply entrenched local demand, it is little surprise that Singaporean businessman and investor Toh and his brothers regard the neighbourhood — bounded by Hougang Avenue 4 and Avenue 8 — as “prosperous”.

More than a decade ago, Toh found himself in a bidding war for an HDB shop unit in the area, but ultimately lost out. When two units at Block 698, Hougang Street 61, later came to market, he seized the opportunity and acquired both sometime in 2015-2016.

Toh has held the properties for the past decade. “Ten years is equivalent to 40 quarters in the investment world,” he says. “It’s not long, nor is it short.”

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With prominent frontage along Hougang Street 61, Block 698, as well as neighbouring Block 685, make up the only two low-rise, eight-storey HDB blocks in the area, both completed in 1986. The surrounding blocks were built later, in 1998.

Hougang’s landscape has transformed significantly over the decades. Once characterised by pig farms and kampung settlements, it has progressively redeveloped into a public housing estate from the 1980s. Today, it is regarded as Singapore’s largest HDB town.

The shophouse units at Block 698 are configured over two storeys, with a commercial space on the ground floor and a residential unit above, connected by an internal staircase. Upper-level units are typically three-room (two-bedroom) or four-room (three-bedroom) flats.

A title search shows that the original lease for the shophouse units was for 115 years, starting from 1984. It was later reset to 90 years from 1995 — aligning more closely with surrounding HDB blocks such as 698A and 698B, which were completed in 1998 with 99-year leases from March 1999.

‘End of an era’

One of Toh’s units, #01-14, has a total area of 1,335 sq ft and has been fully leased to Hai Tian Healthcare Spa & Massage for the past decade.

The other unit, #01-04, has 1,001 sq ft of ground-floor commercial space and has been subdivided into two. One half is leased to Johong Hardware & Paints, while the other is occupied by 5B (Hougang), a kitchen equipment and household supply business run by Toh’s family. The 698 sq ft, three-room flat above houses the company’s workers, bringing the total strata area to 1,699 sq ft.

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Initially, Toh and his family had no intention of selling. However, when the neighbouring unit was put up for sale, they decided to join forces and list their units as well.

The neighbouring unit, #01-02, comprises a 1,012 sq ft ground floor — also subdivided — with tenants including a 7-Eleven convenience store and P&W Hair Salon, which has operated there for over two decades. The 915 sq ft, four-room flat above is leased to a separate tenant, bringing the total strata area to 1,927 sq ft.

While Toh could have leased out the space his family business currently occupies, discussions with his brothers have led to the decision to sell. “It’s like the end of an era,” he says.

Quiet transformation in heartland retail

As older owners gradually divest or step back, “a new wave of younger entrepreneurs and professionals see opportunity in entering these neighbourhoods”, says Sammi Lim, founder and executive director of Brilliance Capital.

In tandem, HDB shophouses are undergoing a quiet transformation. Traditional trades are being complemented — and in some cases replaced — by cafés, fast-casual dining concepts, pet services, boutique fitness studios and even medical aesthetic clinics, notes Lim.

She sees such “ground-up gentrification” driven by evolving lifestyle preferences reshaping mature estates, rather than large-scale redevelopment.

“What is particularly interesting is the blend of old and new — where legacy businesses coexist alongside modern, design-led concepts,” says Lim. “This creates a retail ecosystem that is both nostalgic and forward-looking.”

Lim also notes a growing appreciation for neighbourhood-based experiences, with HDB shophouses increasingly seen as community anchors rather than purely transactional spaces.

“Over time, these clusters evolve into vibrant micro-commercial hubs within heartland estates, reinforcing their long-term relevance and investment appeal.”

Three-unit offering in Hougang

Brilliance Capital has assembled three HDB shophouse units at Block 698 Hougang Street 61 for sale.

The largest unit, #01-02, has a strata area of 1,927 sq ft and is priced at $4 million. The two units owned by the Toh family are priced at $4.2 million for the 1,699 sq ft unit (#01-04), and $2 million for the 1,335 sq ft unit (#01-14) (see table).

Collectively, the units offer 2,659 sq ft of ground-floor retail space and 2,302 sq ft of residential space, with a total asking price of $10.2 million. Buyers may acquire the units individually or as a portfolio. The sale will be conducted via public tender, which closes on May 7.

Permanent residents (PRs), foreigners and corporate entities purchasing these shophouses will be subject to additional buyer’s stamp duty (ABSD) on the residential portion. PRs will pay 5% ABSD; foreigners, 60% (except citizens of the US, Switzerland, Norway, Iceland, and Liechtenstein); and corporate entities, 65%.

According to the government, there are about 15,500 HDB shop units in Singapore, of which roughly 8,500 are privately owned, and 7,000 are rented out by HDB. Since the government stopped selling HDB shops to private owners in 1998, new supply has effectively been limited to the resale market.

The buzz of Hougang Village

Block 698 sits directly opposite Hougang Village — the neighbourhood centre spanning Blocks 681 to 684 Hougang Avenue 8. The area is a busy hub of shops, offices, and a food centre, with a weekend pasar malam that draws residents, “both young and old”, says Leeson.

He points to a corner fruit stall he visits regularly as a case in point of strong rental performance. The 614 sq ft unit was leased for $20,680 per month, or $33.70 psf, in January 2024. The rental premium was due to the high-traffic frontage, and the use of the outdoor display area (under a temporary occupation licence).

Another shop believed to command monthly rents in the $20,000 range is a nearby corner porridge coffeeshop.

Renewal is already visible in the neighbourhood, adds Leeson, pointing to Swee Heng, a halal bakery that opened at Block 682 in December 2023.

Leeson and his colleague Kenny Lim, associate director of Brilliance Capital, are representing the sellers. “Opportunities to acquire multiple units within a single HDB commercial block are extremely rare,” says Lim.

There is also potential for the shops at Block 698 to apply for a change of use to F&B, subject to approval, Lim adds.

Growth drivers ahead

Nearby, Hougang Sports Centre is undergoing renovation and is expected to reopen in June with upgraded facilities, including new fitness studios, water play features, refurbished running track and a refreshed indoor sports hall. The sports hall has four indoor pickleball courts.

Further transformation is on the horizon. In January, a consortium comprising CapitaLand Integrated Commercial Trust, CapitaLand Development and UOL Group was awarded the Hougang Central GLS (Government Land Sale) site for $1.5 billion, or about $1,079 psf per plot ratio.

The site will be developed into a mixed-use project featuring a new mall with about 300,000 sq ft of net lettable area and approximately 830 residential units.

The integrated development will be directly connected to Hougang MRT Station (North East Line), the new Hougang bus interchange and a new town plaza. A planned link to the Cross Island Line by 2030 is expected to further enhance accessibility.

Dual-asset offering

Alongside the Hougang shophouses, Brilliance Capital is also marketing a 678 sq ft, ground-floor strata unit at Textile Centre for $1.388 million.

While the Hougang assets offer “defensive, neighbourhood-driven income supported by a large residential catchment”, the Textile Centre unit provides exposure to city-fringe commercial activity with potential for future redevelopment, says Lim.

The 25-storey Textile Centre at Jalan Sultan, just off Beach Road in the CBD, comprises 132 strata-titled units, including retail, office and one- and two-bedroom apartments. Completed in 1977, the development sits on a 99-year lease from 1970, with about 43 years remaining.

Owners previously attempted a collective sale in 2019 at a reserve price of $652 million, and market talk suggests another attempt could be underway.

“By bringing these assets together, the portfolio offers both stability and upside,” says Lim. “It allows investors to diversify across locations and demand drivers — balancing income security with growth potential.”

Interest is expected from family offices, private investors and owner-occupiers seeking a foothold in shop units.

There is a quiet but meaningful evolution underway in Singapore’s heartland retail landscape, says Lim. “HDB shophouses are no longer just functional spaces — they are becoming lifestyle-driven community nodes.”