Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Located at Plantation Close in Tengah in the West Area, Otto Place is around 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, offering a ready pool of possible HDB upgraders. Fong added that distance to colleges and the neighboring Jurong Lake District– allocated as the largest mixed-use company center outside the city– boosts the project’s interest family groups.
The 600-unit EC venture had actually earlier sold 351 units throughout its launch weekend on July 18– 19, reflecting a preliminary take-up rate of 59%. With the extra sales yesterday, the tally now stands at 548 units– over 91%– throughout one month of launch. Based on cautions lodged to date, the common price attained is $1,750 psf.
Mark Yip, CEO of Huttons Asia, noted that second-timers commonly have larger family sizes and consequently favour larger units. “At Otto Place, all the four-bedroom units are totally marketed,” he claimed.
PropNex CEO Kelvin Fong attributed Otto Location’s solid performance to its locational appearance, the decreasing supply of unsold ECs, and buyers’ understanding of rising EC land costs, which are anticipated to put in upward pressure on future launch costs.
“With rates of interest trending downhill, an estimated 85% of buyers at Otto Place went with the credit plan, compared to around 75% in the time of the preliminary July start,” Yip included.
Second-timers describe homebuyers that have previously gotten a real estate aid from HDB. Throughout an EC’s first start, 70% of units are booked for first-timers, whilst second-timers are restricted to 30%. This limitation is lifted 30 days after kick off, with balloting conducted for second-timers who were unsuccessful in safeguarding a unit beforehand.
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer clients of Otto Place executive condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were sold throughout the exercise, according to the developers’ release.
At the same time, a record land rate was evaluated the current 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 new gross floor area harmonisation rules, PropNex anticipates units at the future project– yielding around 420 units– to be priced above $1,800 psf.
According to PropNex, fewer than 60 unsold EC units continue being on the market. 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 launch weekend break. The remaining 52 units were purchased just within hours when schedulings opened for second-timers on April 12. To day, Aurelle’s average rate is $1,766 psf based upon caveats lodged.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit job at Jalan Loyang Besar, obtained using 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.
