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 investors of Otto Place exec condominium (EC) on the night of Tuesday, August 19. A total amount of 167 units were offered during the exercise, according to the developers’ introduction.
On the other hand, 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 account high building and construction costs and new gross floor area harmonisation rules, PropNex anticipates units at the future project– generating around 420 units– to be valued over $1,800 psf.
“With rate of interest trending downwards, an approximated 85% of purchasers at Otto Place chose the deferred payment plan, compared to around 75% in the time of the preliminary July launch,” Yip included.
According to PropNex, fewer than 60 unsold EC units stay on the market. One of 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 gotten within hours when reservations opened up for second-timers on April 12. To day, Aurelle’s average price is $1,766 psf based on caveats lodged.
The 600-unit EC property had earlier offered 351 units throughout its launch weekend on July 18– 19, reflecting a first take-up rate of 59%. With the more sales yesterday, the tally now rises at 548 units– over 91%– in just one month of launch. Based on cautions lodged to day, the standard cost achieved is $1,750 psf.
Mark Yip, CEO of Huttons Asia, noted that second-timers usually have bigger family sizes and therefore favour larger units. “At Otto Place, all the four-bedroom units are fully marketed,” he stated.
PropNex CEO Kelvin Fong associated Otto Area’s solid productivity to its locational demand, the decreasing supply of unsold ECs, and buyers’ awareness of rising EC land prices, which are expected to apply upward stress on future launch costs.
The next EC launch in the pipe is Qingjian Realty’s 748-unit job at Jalan Loyang Besar, acquired using 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 completion of this year, stated Fong.
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, providing a ready pool of possible HDB upgraders. Fong added that distance to institutions and the nearby Jurong Lake Area– earmarked as the biggest mixed-use establishment hub outside the city– boosts the project’s attract family groups.
Second-timers refer to buyers that have previously obtained a housing subsidy from HDB. Throughout an EC’s preliminary start, 70% of units are scheduled for first-timers, while second-timers are restricted to 30%. This constraint is removed one month after release, with balloting conducted for second-timers who were not successful in securing a unit previously.
