Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Second-timers describe homebuyers who have actually previously gotten a real estate aid from HDB. During an EC’s first release, 70% of units are scheduled for first-timers, whilst second-timers are restricted to 30%. This constraint is raised thirty days after release, with balloting performed for second-timers who were unsuccessful in obtaining a unit beforehand.
According to PropNex, fewer than 60 unsold EC units stay on the marketplace. One of the most current EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which marketed 90% of units on release weekend. The remaining 52 units were snapped up just within hours when bookings opened for second-timers on April 12. To date, Aurelle’s average cost is $1,766 psf based on caveats lodged.
Meanwhile, a record land rate was set at the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in very early August. Taking into consideration high building and construction costs and new gross flooring area harmonisation rules, PropNex expects units at the future project– generating around 420 units– to be priced above $1,800 psf.
PropNex CEO Kelvin Fong associated Otto Place’s solid performance to its locational appearance, the decreasing supply of unsold ECs, and buyers’ recognition of climbing EC land costs, which are anticipated to exert upward stress on future launch costs.
The 600-unit EC project had actually earlier offered 351 units throughout its launch weekend on July 18– 19, showing a first take-up rate of 59%. With the more sales yesterday, the tally now rises at 548 units– over 91%– in just one month of launch. Based on caveats lodged to date, the standard price achieved is $1,750 psf.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers normally have bigger family sizes and consequently favour larger units. “At Otto Place, all the four-bedroom units are completely marketed,” he said.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, got through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is intended for launch at some time towards completion of this year, said Fong.
“With rates of interest trending downwards, an estimated 85% of buyers at Otto Place went with the credit system, compared to around 75% during the preliminary July launch,” Yip added.
Joint property developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer clients of Otto Place executive condominium (EC) on the night of Tuesday, August 19. A total of 167 units were marketed during the exercise, according to the developers’ introduction.
Found 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 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 added that distance to colleges and the neighboring Jurong Lake Area– allocated as the biggest mixed-use establishment center outside the city– enhances the property’s attract family groups.
