Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Second-timers refer to investors who have actually formerly obtained a housing subsidy from HDB. During an EC’s preliminary release, 70% of units are booked for first-timers, whilst second-timers are limited to 30%. This restriction is removed 30 days after release, with balloting carried out for second-timers that were unsuccessful in obtaining a unit previously.
The 600-unit EC property had previously offered 351 units throughout its launch weekend on July 18– 19, demonstrating a first take-up rate of 59%. With the additional sales yesterday, the tally currently stands at 548 units– over 91%– in just one month of launch. Based on cautions lodged to date, the average cost achieved is $1,750 psf.
Joint developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer investors of Otto Place exec condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were offered during 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. Taking into consideration high building costs and new gross floor area harmonisation rules, PropNex expects units at the future project– generating around 420 units– to be valued above $1,800 psf.
Mark Yip, CEO of Huttons Asia, indicated that second-timers typically have bigger family sizes and for that reason favour bigger units. “At Otto Place, all the four-bedroom units are completely offered,” he claimed.
PropNex chief executive officer Kelvin Fong associated Otto Location’s solid productivity to its locational demand, the dwindling supply of unsold ECs, and buyers’ awareness of rising EC land prices, which are anticipated to put in upward pressure on future launch costs.
The following EC launch in the pipeline is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, obtained by means of a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is aim at for launch sometime towards completion of this year, said Fong.
According to PropNex, fewer than 60 unsold EC units continue to be on the marketplace. The most current EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that offered 90% of units on debut weekend. The remaining 52 units were bought within hours when schedulings opened up for second-timers on April 12. To day, Aurelle’s average cost is $1,766 psf based upon caveats lodged.
“With interest rates trending downwards, an approximated 85% of buyers at Otto Place selected the deferred payment plan, compared to around 75% during the first July start,” Yip added.
Found 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, offering a ready pool of potential HDB upgraders. Fong incorporated that closeness to colleges and the neighboring Jurong Lake Area– allocated as the largest mixed-use company hub outside the city– improves the property’s appeal to households.
