Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Second-timers refer to buyers that have formerly received a housing aid from HDB. Throughout an EC’s first launch, 70% of units are scheduled for first-timers, while second-timers are limited to 30%. This limitation is removed 30 days after release, with balloting conducted for second-timers who were unsuccessful in safeguarding a unit previously.
PropNex CEO Kelvin Fong connected Otto Location’s solid performance to its locational appearance, the diminishing supply of unsold ECs, and buyers’ awareness of increasing EC land costs, which are anticipated to exert upward stress on future launch rates.
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, providing a ready pool of prospective HDB upgraders. Fong included that proximity to schools and the close-by Jurong Lake Area– allocated as the biggest mixed-use business hub outside the city– improves the project’s appeal to family groups.
Joint property developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer investors of Otto Place exec condominium (EC) on the night of Tuesday, August 19. An overall of 167 units were marketed throughout the exercise, according to the developers’ introduction.
The 600-unit EC property had previously sold 351 units during its launch weekend on July 18– 19, reflecting an initial take-up rate of 59%. With the additional sales yesterday, the tally now stands at 548 units– over 91%– in just one month of launch. Based on caveats lodged to day, the common price achieved is $1,750 psf.
Bagnall Haus Roxy Pacific Holdings Limited
The following EC launch in the pipe is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, got via 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, stated Fong.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers typically have bigger family sizes and therefore favour bigger units. “At Otto Place, all the four-bedroom units are totally offered,” he said.
“With rate of interest trending downwards, an estimated 85% of buyers at Otto Place opted for the deferred payment scheme, contrasted to around 75% in the time of the initial July start,” Yip included.
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. Taking into account high construction costs and brand-new gross flooring area harmonisation rules, PropNex expects units at the future project– producing around 420 units– to be valued over $1,800 psf.
According to PropNex, fewer than 60 unsold EC units stay on the marketplace. One of the most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that marketed 90% of units on launch weekend. The remaining 52 units were bought within hours when reservations opened for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
