Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Joint property developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer buyers of Otto Place exec condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were offered throughout the exercise, according to the developers’ release.
“With rate of interest trending downwards, an estimated 85% of buyers at Otto Place opted for the deferred payment system, compared to around 75% in the time of the preliminary July launch,” Yip included.
The next EC launch in the pipe is Qingjian Realty’s 748-unit job 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 the end of this year, claimed Fong.
The 600-unit EC venture had earlier offered 351 units during its launch weekend on July 18– 19, demonstrating a first take-up rate of 59%. With the additional sales yesterday, the tally now rises at 548 units– over 91%– throughout one month of launch. Based on cautions lodged to day, the standard rate achieved 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 and construction costs and brand-new gross floor area harmonisation rules, PropNex expects units at the future project– producing around 420 units– to be valued above $1,800 psf.
Second-timers describe buyers who have actually formerly gotten a real estate aid from HDB. Throughout an EC’s preliminary start, 70% of units are booked for first-timers, even though second-timers are limited to 30%. This constraint is lifted 30 days after release, with balloting carried out for second-timers who were not successful in obtaining a unit beforehand.
Mark Yip, Chief Executive Officer of Huttons Asia, noted that second-timers typically have larger family sizes and therefore favour larger units. “At Otto Place, all the four-bedroom units are fully sold,” he stated.
PropNex CEO Kelvin Fong associated Otto Area’s strong performance to its locational appearance, the diminishing supply of unsold ECs, and buyers’ awareness of rising EC land prices, which are anticipated to exert higher pressure on future launch rates.
According to PropNex, less than 60 unsold EC units continue to be on the marketplace. The most current EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which marketed 90% of units on release weekend. The remaining 52 units were purchased in just hours when bookings opened up for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
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 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 included that closeness to schools and the close-by Jurong Lake Area– earmarked as the biggest mixed-use company center outside the city– improves the property’s attract families.
