Otto Place 91% sold after second-timer balloting, underscoring EC market strength
The 600-unit EC project had actually earlier marketed 351 units during its launch weekend on July 18– 19, showing a preliminary take-up rate of 59%. With the additional sales yesterday, the tally currently rises at 548 units– over 91%– throughout one month of launch. Based on caveats lodged to day, the typical price attained is $1,750 psf.
“With rate of interest trending downwards, an estimated 85% of purchasers at Otto Place chose the deferred payment plan, compared to around 75% in the time of the first July start,” Yip added.
Situated 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 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 included that closeness to institutions and the nearby Jurong Lake Area– allocated as the biggest mixed-use establishment hub outside the city– boosts the property’s appeal to family groups.
Meanwhile, 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. Considering high building and construction costs and new gross floor area harmonisation rules, PropNex anticipates units at the future project– yielding about 420 units– to be valued above $1,800 psf.
Mark Yip, Chief Executive Officer of Huttons Asia, indicated that second-timers commonly have bigger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are totally marketed,” he claimed.
Second-timers describe investors that have actually previously gotten a housing subsidy from HDB. During an EC’s initial launch, 70% of units are booked for first-timers, whilst second-timers are restricted to 30%. This restriction is lifted one month after launch, with balloting carried out for second-timers who were not successful in getting a unit previously.
PropNex CEO Kelvin Fong attributed Otto Area’s solid performance to its locational demand, the decreasing supply of unsold ECs, and buyers’ understanding of rising EC land costs, which are expected to exert upward pressure on future launch costs.
According to PropNex, fewer than 60 unsold EC units stay on the marketplace. One of the most current EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that sold 90% of units on launch weekend. The remaining 52 units were gotten within hours when reservations opened for second-timers on April 12. To date, Aurelle’s average price is $1,766 psf based upon caveats lodged.
Joint developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer investors of Otto Place executive condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were sold during the exercise, according to the developers’ launch.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, acquired 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 at some time towards the end of this year, said Fong.
