Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Situated at Plantation Close in Tengah in the West Area, Otto Place is near 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, providing a ready pool of possible HDB upgraders. Fong incorporated that distance to institutions and the neighboring Jurong Lake District– earmarked as the biggest mixed-use establishment center outside the city– enhances the property’s interest households.
PropNex CEO Kelvin Fong attributed Otto Area’s strong performance to its locational demand, the decreasing supply of unsold ECs, and buyers’ understanding of rising EC land expenses, which are expected to apply higher stress on future launch prices.
According to PropNex, fewer than 60 unsold EC units continue to be 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 sold 90% of units on debut weekend break. The remaining 52 units were gotten in just hours when bookings opened up for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
On the other hand, 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 early August. Taking into consideration high building and construction costs and brand-new gross floor area harmonisation rules, PropNex expects units at the future project– yielding around 420 units– to be priced above $1,800 psf.
The next EC launch in the pipe is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, obtained using a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is aim at for launch sometime towards the end of this year, stated Fong.
The 600-unit EC property had actually previously 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 currently stands at 548 units– over 91%– within one month of launch. Based on cautions lodged to day, the standard price achieved is $1,750 psf.
Second-timers refer to purchasers who have actually previously gotten a real estate aid from HDB. During an EC’s preliminary start, 70% of units are scheduled for first-timers, even though second-timers are limited to 30%. This limitation is removed 30 days after release, with balloting conducted for second-timers who were unsuccessful in getting a unit previously.
Joint developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer buyers 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’ release.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers typically have larger family sizes and for that reason favour bigger units. “At Otto Place, all the four-bedroom units are totally sold,” he said.
“With rates of interest trending downwards, an estimated 85% of buyers at Otto Place opted for the deferred payment plan, compared to around 75% during the first July start,” Yip added.
