Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Joint developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer clients 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’ release.
According to PropNex, less than 60 unsold EC units continue to be on the marketplace. One of the most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that offered 90% of units on release weekend. The remaining 52 units were grabbed in just hours when reservations opened up for second-timers on April 12. To date, Aurelle’s average rate is $1,766 psf based on caveats lodged.
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At the same time, 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 very early August. Considering high building costs and brand-new gross flooring area harmonisation rules, PropNex anticipates units at the future project– yielding around 420 units– to be valued above $1,800 psf.
Second-timers refer to homebuyers that have actually formerly received a real estate subsidy from HDB. Throughout an EC’s initial start, 70% of units are reserved for first-timers, whilst second-timers are limited to 30%. This limitation is raised thirty days after launch, with balloting conducted for second-timers that were unsuccessful in getting a unit beforehand.
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, said Fong.
“With interest rates trending downwards, an approximated 85% of investors at Otto Place chose the credit plan, contrasted to around 75% in the time of the initial July launch,” Yip added.
Located at Plantation Close in Tengah in the West Region, 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, offering a ready pool of possible HDB upgraders. Fong incorporated that distance to schools and the neighboring Jurong Lake District– earmarked as the largest mixed-use establishment hub outside the city– enhances the property’s appeal to households.
The 600-unit EC property had actually previously marketed 351 units throughout its launch weekend on July 18– 19, showing a first take-up rate of 59%. With the additional sales yesterday, the tally currently stands at 548 units– over 91%– in just one month of launch. Based on caveats lodged to date, the typical price achieved is $1,750 psf.
PropNex chief executive officer Kelvin Fong connected Otto Location’s solid productivity to its locational demand, the diminishing supply of unsold ECs, and buyers’ understanding of increasing EC land prices, which are anticipated to exert upward stress on future launch prices.
Mark Yip, CEO of Huttons Asia, considered that second-timers normally have bigger family sizes and consequently favour bigger units. “At Otto Place, all the four-bedroom units are completely sold,” he stated.
