Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer homebuyers of Otto Place executive condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were marketed during the exercise, according to the developers’ launch.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, got through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is intended for launch sometime towards the end of this year, claimed Fong.
“With rate of interest trending downhill, an estimated 85% of purchasers at Otto Place selected the deferred payment system, contrasted to around 75% during the initial July launch,” Yip included.
Mark Yip, CEO of Huttons Asia, noted that second-timers normally have larger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are fully offered,” he stated.
PropNex CEO Kelvin Fong associated Otto Location’s solid performance to its locational appeal, the diminishing supply of unsold ECs, and buyers’ understanding of climbing EC land expenses, which are anticipated to exert higher stress on future launch prices.
Located at Plantation Close in Tengah in the West Area, Otto Place is near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, slated for completion in 2029. The Tengah area is also flanked by Jurong East and Bukit Batok estates, providing a ready pool of potential HDB upgraders. Fong added that proximity to institutions and the nearby Jurong Lake Area– earmarked as the largest mixed-use service center outside the city– enhances the property’s attract households.
Second-timers describe homebuyers that have previously obtained a housing subsidy from HDB. Throughout an EC’s preliminary launch, 70% of units are reserved for first-timers, while second-timers are restricted to 30%. This constraint is removed thirty days after release, with balloting carried out for second-timers who were not successful in securing a unit beforehand.
According to PropNex, fewer than 60 unsold EC units remain on the market. The most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which marketed 90% of units on launch weekend. The remaining 52 units were bought just within hours when schedulings opened up for second-timers on April 12. To day, Aurelle’s average cost is $1,766 psf based on caveats lodged.
The 600-unit EC property had actually earlier marketed 351 units during its launch weekend on July 18– 19, showing an initial take-up rate of 59%. With the more sales yesterday, the tally now stands at 548 units– over 91%– in just one month of launch. Based on caveats lodged to date, the typical rate attained is $1,750 psf.
At the same time, a record land rate was evaluated the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Considering high building costs and brand-new gross floor area harmonisation rules, PropNex expects units at the future project– generating about 420 units– to be priced above $1,800 psf.
