Otto Place 91% sold after second-timer balloting, underscoring EC market strength
The following EC launch in the pipeline is Qingjian Realty’s 748-unit job 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 targeted for launch sometime towards completion of this year, claimed Fong.
Mark Yip, CEO of Huttons Asia, considered that second-timers commonly have larger family sizes and for that reason favour larger units. “At Otto Place, all the four-bedroom units are completely marketed,” he claimed.
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 very early August. Taking into account high building costs and brand-new gross flooring area harmonisation rules, PropNex expects units at the future project– yielding around 420 units– to be valued over $1,800 psf.
“With rates of interest trending downhill, an estimated 85% of investors at Otto Place opted for the deferred payment scheme, contrasted to around 75% in the time of the initial July start,” Yip included.
Joint developers Hoi Hup Realty and Sunway Developments held the balloting for second-timer buyers of Otto Place exec condominium (EC) on the night of Tuesday, August 19. A total of 167 units were offered during the exercise, according to the developers’ release.
Located at Plantation Close in Tengah in the West Area, Otto Place is close to 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 proximity to schools and the neighboring Jurong Lake District– reserved as the largest mixed-use establishment center outside the city– boosts the property’s attract families.
The 600-unit EC venture had previously marketed 351 units during its launch weekend on July 18– 19, demonstrating an initial take-up rate of 59%. With the extra sales yesterday, the tally currently stands at 548 units– over 91%– throughout one month of launch. Based on cautions lodged to date, the typical cost attained is $1,750 psf.
PropNex CEO Kelvin Fong connected Otto Location’s solid performance to its locational demand, the decreasing supply of unsold ECs, and buyers’ recognition of rising EC land costs, which are anticipated to put in higher stress on future launch rates.
According to PropNex, less than 60 unsold EC units stay on the market. One of the most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that marketed 90% of units on debut weekend. The remaining 52 units were purchased within hours when reservations opened for second-timers on April 12. To day, Aurelle’s average cost is $1,766 psf based on caveats lodged.
Second-timers describe homebuyers who have formerly gotten a real estate subsidy from HDB. During an EC’s first start, 70% of units are scheduled for first-timers, whilst second-timers are limited to 30%. This limitation is lifted thirty days after kick off, with balloting conducted for second-timers that were unsuccessful in securing a unit earlier.
