_Knight Frank Commentary | GLS Tender closing for Hougang Avenue 10/Hougang Central

Tender Closing for GLS Site

Mixed-residential and commercial site at Hougang Avenue 10/Hougang Central
Despite its size and development quantum with an outlay of S$1.5 billion in land cost alone, homebuyer interest in mixed-integrated developments at main transport nodes with an MRT station and bus interchange, can typically be relied on during a project launch, so long as Singapore is not in a recession. When ParkTown Residence in Tampines North was launched in February earlier this year, over 1,000 units, or over 87% of the project’s total of 1,193 units was reportedly sold the first weekend. The land parcel at Hougang Avenue 10/Hougang Central is directly above Hougang MRT station on the North-East Line (NEL), where residents will be able to enjoy immediate, sheltered access to the mass transit trains as well as the bus-interchange to be constructed together with this integrated development. The existing NEL station at Hougang will eventually be joined by the Cross Island Line (CRL). Future residents will benefit from increased convenient links to the city centre and other estates throughout Singapore.

Likely homebuyers for a completed condominium unit at this project include HDB upgraders from surrounding estates. However, integrated developments with a substantially sized retail mall of potentially over 400,000 sf in gross floor area (GFA), larger than the adjacent Hougang Mall with a GFA of 232,782 sf, combined with an MRT station and bus-interchange, have the potential drawing power to attract homebuyers from beyond its existing planning area, captivating households from all over Singapore. The mixed-use nature of the site allows for the creation of a suburban neighbourhood, that would become even more of a human activity magnet for Hougang. With curated F&B, daily needs, and community-oriented offerings, the retail element would enhance liveability for residents while also serving the broader north-east catchment.

The top bid of about S$1.50 billion or S$1,179 psf ppr is 2.1% above the second highest bid of S$1.47 billion or S$1,155 psf ppr, and around 20.3% higher than the land rate of the integrated mixed-commercial and residential GLS parcel at Chencharu Close that was awarded a few months ago in September. The number of bids as well as the top bid is within expectations given the sheer size of the potential development. As such, the possible selling price for the residential units here when ready to launch could start from S$2,500 psf. However, given the attractiveness of an integrated development where basic goods and services, facilities and amenities, and human centric activities are all within arm’s reach, the average selling price could possibly be more than S$2,600 psf

Source: URA