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 prospective HDB upgraders. Fong included that closeness to colleges and the neighboring Jurong Lake Area– allocated as the biggest mixed-use service hub outside the city– enhances the property’s attract family groups.
The next EC launch in the pipe is Qingjian Realty’s 748-unit project 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.
Second-timers describe investors who have actually previously 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 restricted to 30%. This limitation is raised 30 days after launch, with balloting conducted for second-timers who were not successful in obtaining a unit earlier.
PropNex chief executive officer Kelvin Fong connected Otto Area’s strong productivity to its locational demand, the diminishing supply of unsold ECs, and buyers’ awareness of climbing EC land expenses, which are expected to apply upward pressure on future launch rates.
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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 very early August. Considering high construction costs and new gross flooring area harmonisation rules, PropNex anticipates units at the future project– producing around 420 units– to be priced over $1,800 psf.
Joint property developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer homebuyers of Otto Place exec condominium (EC) on the night of Tuesday, August 19. A total of 167 units were marketed 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 current EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that sold 90% of units on debut weekend break. The remaining 52 units were purchased in just hours when schedulings opened for second-timers on April 12. To date, Aurelle’s average rate is $1,766 psf based upon caveats lodged.
The 600-unit EC property had previously offered 351 units during its launch weekend on July 18– 19, demonstrating a preliminary take-up rate of 59%. With the extra sales yesterday, the tally now stands at 548 units– over 91%– within one month of launch. Based on cautions lodged to date, the typical price reached is $1,750 psf.
“With rates of interest trending downhill, an approximated 85% of investors at Otto Place selected the credit plan, compared to around 75% in the time of the initial July launch,” Yip added.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers generally have larger family sizes and as a result favour bigger units. “At Otto Place, all the four-bedroom units are completely marketed,” he claimed.
