Otto Place 91% sold after second-timer balloting, underscoring EC market strength
The next EC launch in the pipe is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, acquired via 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.
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer buyers of Otto Place executive condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were offered throughout the exercise, according to the developers’ launch.
Mark Yip, Chief Executive Officer of Huttons Asia, noted that second-timers commonly have bigger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are fully sold,” he stated.
On the other hand, 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 very 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.
Located at Plantation Close in Tengah in the West Area, Otto Place is around 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 possible HDB upgraders. Fong incorporated that closeness to colleges and the close-by Jurong Lake District– earmarked as the biggest mixed-use service center outside the city– boosts the project’s attract family groups.
The 600-unit EC property had actually earlier sold 351 units throughout its launch weekend on July 18– 19, showing a first take-up rate of 59%. With the extra sales yesterday, the tally currently stands at 548 units– over 91%– within one month of launch. Based on caveats lodged to date, the common rate attained is $1,750 psf.
Second-timers describe homebuyers who have formerly gotten a real estate subsidy from HDB. Throughout an EC’s preliminary launch, 70% of units are booked for first-timers, while second-timers are limited to 30%. This restriction is removed 30 days after release, with balloting carried out for second-timers that were not successful in getting a unit beforehand.
“With rate of interest trending downhill, an estimated 85% of purchasers at Otto Place selected the deferred payment scheme, compared to around 75% in the time of the preliminary July start,” Yip added.
According to PropNex, fewer than 60 unsold EC units remain 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 offered 90% of units on debut weekend. The remaining 52 units were gotten in just hours when schedulings opened up for second-timers on April 12. To day, Aurelle’s average cost is $1,766 psf based upon caveats lodged.
PropNex chief executive officer Kelvin Fong attributed Otto Place’s solid productivity to its locational appeal, the diminishing supply of unsold ECs, and buyers’ understanding of climbing EC land expenses, which are expected to apply upward stress on future launch rates.
