Otto Place 91 Sold After Second Timer Balloting Underscoring Ec Market Strength
Joint developers Hoi Hup Realty and Sunway Developments successfully conducted the balloting for second-time buyers of Otto Place executive condominium (EC) on Tuesday, August 19. According to a press release from the developers, a total of 167 units were sold during the event. The project, which consists of 600 units, had previously sold 351 units during its launch on July 18-19, resulting in an initial take-up rate of 59%. With the additional sales from the balloting exercise, the total number of sold units now stands at 548, which is over 91% of the total units, within just one month since the launch. Based on the data from caveats lodged to date, the average price achieved for the units is $1,750 per square foot.The term “second-time buyers” refers to individuals who have previously received a housing subsidy from HDB. During the initial launch of an EC, 70% of the units are reserved for first-time buyers, while the remaining 30% are allocated for second-time buyers. However, this restriction is lifted after 30 days from the launch, allowing those who were unsuccessful in securing a unit earlier to participate in the balloting for the remaining units.
Huttons Asia CEO Mark Yip noted that second-time buyers usually prefer larger units due to their bigger family sizes, which could explain why all four-bedroom units at Otto Place were fully sold. He also pointed out that with interest rates declining, around 85% of the buyers at Otto Place chose to use the deferred payment scheme, compared to approximately 75% during the initial launch in July.
PropNex CEO Kelvin Fong attributed Otto Place’s strong performance to its location, the decreasing supply of unsold ECs, and buyers’ awareness of rising EC land costs, which are expected to drive prices up for future launches. The project is situated at Plantation Close in Tengah, an up-and-coming area in the West Region. It is near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, scheduled for completion in 2029. The Tengah area is also surrounded by well-established estates such as Jurong East and Bukit Batok, providing a potential pool of HDB upgraders. Fong added that its proximity to schools and the nearby Jurong Lake District, which has been earmarked as the largest mixed-use business hub outside the city, further adds to the project’s appeal to families.
According to PropNex, there are currently less than 60 unsold EC units in the market. The most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which sold 90% of units on its launch weekend. The remaining 52 units were quickly snapped up within hours when bookings opened for second-time buyers in April. As of now, Aurelle’s average price is $1,766 per square foot based on caveats lodged.
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The next EC launch in the pipeline is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, which was acquired through a government land sales (GLS) tender and is expected to be launched towards the end of this year, said Fong.
Meanwhile, a new record was set for an EC land rate at the recent GLS tender in Woodlands Drive 17, where City Developments Ltd paid $782 per square foot per plot ratio in early August. Taking into account the high construction costs and the new gross floor area harmonization rules, PropNex believes that units at the future project – which is expected to yield around 420 units – will likely be priced above $1,800 per square foot.