Otto Place 91% sold after second-timer balloting, underscoring EC market strength
PropNex CEO Kelvin Fong connected Otto Place’s strong productivity to its locational appearance, the diminishing supply of unsold ECs, and buyers’ awareness of increasing EC land costs, which are anticipated to apply higher stress on future launch rates.
According to PropNex, less than 60 unsold EC units stay on the marketplace. The most current EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which offered 90% of units on release weekend break. The remaining 52 units were bought in just hours when reservations opened for second-timers on April 12. To day, Aurelle’s average rate is $1,766 psf based on caveats lodged.
The following EC launch in the pipeline is Qingjian Realty’s 748-unit job at Jalan Loyang Besar, obtained by means of a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is targeted for launch sometime towards the end of this year, said Fong.
Situated 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 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 included that closeness to schools and the close-by Jurong Lake District– allocated as the biggest mixed-use company hub outside the city– enhances the project’s appeal to family groups.
The 600-unit EC property had actually earlier sold 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 rises at 548 units– over 91%– in just one month of launch. Based on caveats lodged to day, the standard price achieved is $1,750 psf.
Second-timers describe homebuyers that have previously received a real estate subsidy from HDB. Throughout an EC’s preliminary launch, 70% of units are reserved for first-timers, whilst second-timers are limited to 30%. This limitation is removed 30 days after launch, with balloting performed for second-timers who were not successful in obtaining a unit previously.
Joint property developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer clients of Otto Place executive condominium (EC) on the evening of Tuesday, August 19. A total of 167 units were offered throughout the exercise, according to the developers’ release.
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 very early August. Taking into account high building and construction costs and brand-new gross floor area harmonisation rules, PropNex anticipates units at the future project– yielding around 420 units– to be priced above $1,800 psf.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers commonly have larger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are fully sold,” he claimed.
“With interest rates trending downwards, an estimated 85% of buyers at Otto Place opted for the deferred payment system, contrasted to around 75% in the time of the first July launch,” Yip included.
