Otto Place 91% sold after second-timer balloting, underscoring EC market strength
PropNex chief executive officer Kelvin Fong attributed Otto Place’s strong performance to its locational demand, the dwindling supply of unsold ECs, and buyers’ understanding of increasing EC land costs, which are expected to put in upward pressure on future launch rates.
Located at Plantation Close in Tengah in the West Region, Otto Place is near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, slated for conclusion 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 proximity to institutions and the nearby Jurong Lake Area– allocated as the biggest mixed-use establishment center outside the city– boosts the project’s appeal to family groups.
“With rates of interest trending downwards, an approximated 85% of buyers at Otto Place went with the deferred payment scheme, contrasted to around 75% in the time of the preliminary July start,” Yip added.
Mark Yip, Chief Executive Officer of Huttons Asia, noted that second-timers normally have bigger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are completely marketed,” he stated.
The 600-unit EC project had actually earlier sold 351 units during its launch weekend on July 18– 19, showing a preliminary take-up rate of 59%. With the more sales yesterday, the tally now rises at 548 units– over 91%– throughout one month of launch. Based on cautions lodged to date, the common rate achieved is $1,750 psf.
On the other hand, a record land rate was evaluated the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Taking into account high construction costs and new gross flooring area harmonisation rules, PropNex expects units at the future project– yielding about 420 units– to be valued above $1,800 psf.
Union Square Residences City Developments Limited
According to PropNex, fewer than 60 unsold EC units remain on the marketplace. One of the most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which offered 90% of units on launch weekend. The remaining 52 units were snapped up 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 following EC launch in the pipe is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, obtained through 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, claimed Fong.
Joint property developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer homebuyers of Otto Place exec condominium (EC) on the evening of Tuesday, August 19. A total of 167 units were sold throughout the exercise, according to the developers’ release.
Second-timers refer to homebuyers who have actually formerly received a real estate aid from HDB. During an EC’s initial release, 70% of units are reserved for first-timers, even though second-timers are limited to 30%. This restriction is raised thirty days after release, with balloting performed for second-timers that were unsuccessful in getting a unit earlier.
