Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Joint property developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer buyers of Otto Place executive condominium (EC) on the night of Tuesday, August 19. A total amount of 167 units were marketed throughout the exercise, according to the developers’ launch.
Mark Yip, CEO of Huttons Asia, noted that second-timers usually have bigger family sizes and consequently favour bigger units. “At Otto Place, all the four-bedroom units are completely sold,” he stated.
PropNex CEO Kelvin Fong attributed Otto Location’s solid performance to its locational demand, the diminishing supply of unsold ECs, and buyers’ awareness of increasing EC land prices, which are anticipated to apply upward stress on future launch costs.
The 600-unit EC project had actually previously offered 351 units during its launch weekend on July 18– 19, reflecting an initial take-up rate of 59%. With the additional sales yesterday, the tally now stands at 548 units– over 91%– throughout one month of launch. Based on caveats lodged to date, the standard cost reached is $1,750 psf.
Found at Plantation Close in Tengah in the West Region, Otto Place is near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, slated for conclusion in 2029. The Tengah area is also flanked by Jurong East and Bukit Batok estates, offering a ready pool of prospective HDB upgraders. Fong incorporated that closeness to institutions and the neighboring Jurong Lake District– allocated as the biggest mixed-use establishment center outside the city– boosts the property’s interest families.
The following EC launch in the pipeline is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, got via a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is aim at for launch at some time towards the end of this year, stated Fong.
According to PropNex, fewer than 60 unsold EC units remain on the marketplace. One of the most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that marketed 90% of units on debut weekend break. The remaining 52 units were grabbed just within hours when schedulings opened up for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
At the same time, a record land rate was set at the current EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Taking into consideration high construction costs and new gross floor area harmonisation rules, PropNex expects units at the future project– yielding about 420 units– to be valued over $1,800 psf.
“With rates of interest trending downhill, an approximated 85% of buyers at Otto Place selected the credit scheme, contrasted to around 75% during the first July launch,” Yip added.
Second-timers refer to investors that have actually formerly received a housing subsidy from HDB. During an EC’s preliminary release, 70% of units are scheduled for first-timers, while second-timers are restricted to 30%. This constraint is removed one month after kick off, with balloting conducted for second-timers that were unsuccessful in safeguarding a unit earlier.
