Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Joint property developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer clients 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’ release.
Mark Yip, CEO of Huttons Asia, indicated that second-timers usually have larger family sizes and therefore favour bigger units. “At Otto Place, all the four-bedroom units are fully sold,” he said.
Second-timers refer to investors who have formerly received a real estate aid from HDB. Throughout an EC’s preliminary release, 70% of units are reserved for first-timers, even though second-timers are restricted to 30%. This limitation is raised 30 days after kick off, with balloting performed for second-timers that were unsuccessful in obtaining a unit earlier.
Meanwhile, a record land rate was set at the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Taking into account high construction costs and brand-new gross flooring area harmonisation rules, PropNex expects units at the future project– generating about 420 units– to be valued above $1,800 psf.
Located at Plantation Close in Tengah in the West Area, Otto Place is close to the upcoming Tengah Park and Bukit Batok West MRT terminals 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 prospective HDB upgraders. Fong incorporated that distance to schools and the nearby Jurong Lake District– earmarked as the biggest mixed-use business center outside the city– enhances the property’s attract households.
The following EC launch in the pipe is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, got by means of a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is intended for launch at some time towards completion of this year, claimed Fong.
“With interest rates trending downhill, an estimated 85% of purchasers at Otto Place chose the credit scheme, contrasted to around 75% in the time of the preliminary July start,” Yip added.
The 600-unit EC venture had actually earlier sold 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 currently stands at 548 units– over 91%– in just one month of launch. Based on cautions lodged to day, the common price attained is $1,750 psf.
According to PropNex, less than 60 unsold EC units continue being on the market. The most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that sold 90% of units on release weekend break. The remaining 52 units were grabbed within hours when bookings opened up for second-timers on April 12. To date, Aurelle’s average cost is $1,766 psf based on caveats lodged.
PropNex chief executive officer Kelvin Fong attributed Otto Place’s strong productivity to its locational demand, the diminishing supply of unsold ECs, and buyers’ recognition of rising EC land expenses, which are expected to apply higher pressure on future launch rates.
