Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Second-timers refer to homebuyers that have actually formerly gotten a housing subsidy from HDB. Throughout an EC’s initial release, 70% of units are booked for first-timers, even though second-timers are restricted to 30%. This restriction is lifted 30 days after kick off, with balloting conducted for second-timers that were unsuccessful in obtaining a unit previously.
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer investors of Otto Place executive condominium (EC) on the night of Tuesday, August 19. A total amount of 167 units were marketed throughout the exercise, according to the developers’ introduction.
PropNex CEO Kelvin Fong attributed Otto Place’s solid productivity to its locational appeal, the decreasing supply of unsold ECs, and buyers’ recognition of increasing EC land expenses, which are anticipated to put in upward pressure on future launch costs.
Meanwhile, 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 construction costs and brand-new gross floor area harmonisation rules, PropNex expects units at the future project– generating around 420 units– to be priced over $1,800 psf.
According to PropNex, fewer than 60 unsold EC units stay on the market. One of the most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which offered 90% of units on debut weekend break. The remaining 52 units were snapped up within hours when schedulings opened for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
The next EC launch in the pipe is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, obtained through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is intended for launch sometime towards completion of this year, said Fong.
Located at Plantation Close in Tengah in the West Region, Otto Place is near 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 prospective HDB upgraders. Fong added that proximity to schools and the nearby Jurong Lake Area– reserved as the largest mixed-use service center outside the city– boosts the project’s appeal to households.
“With rate of interest trending downwards, an approximated 85% of investors at Otto Place opted for the credit system, compared to around 75% in the time of the first July start,” Yip included.
The 600-unit EC property had previously marketed 351 units throughout its launch weekend on July 18– 19, demonstrating a first take-up rate of 59%. With the extra sales yesterday, the tally now stands at 548 units– over 91%– in just one month of launch. Based on caveats lodged to day, the average rate attained is $1,750 psf.
Mark Yip, Chief Executive Officer of Huttons Asia, noted that second-timers usually have larger family sizes and as a result favour bigger units. “At Otto Place, all the four-bedroom units are fully sold,” he stated.
