Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Found at Plantation Close in Tengah in the West Region, Otto Place is around the upcoming Tengah Park and Bukit Batok West MRT terminals 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 prospective HDB upgraders. Fong included that proximity to colleges and the nearby Jurong Lake Area– earmarked as the largest mixed-use company center outside the city– enhances the project’s attract family groups.
Second-timers refer to investors that have previously obtained a housing aid from HDB. Throughout an EC’s first launch, 70% of units are reserved for first-timers, even though second-timers are restricted to 30%. This restriction is raised 30 days after kick off, with balloting carried out for second-timers that were not successful in safeguarding a unit previously.
According to PropNex, less than 60 unsold EC units continue being on the marketplace. The most current EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, that marketed 90% of units on launch weekend break. The remaining 52 units were snapped up in just hours when reservations opened up for second-timers on April 12. To date, Aurelle’s average rate is $1,766 psf based on caveats lodged.
“With rate of interest trending downhill, an estimated 85% of buyers at Otto Place opted for the credit system, compared to around 75% in the time of the first July start,” Yip added.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit task at Jalan Loyang Besar, got using a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is targeted for launch at some time towards the end of this year, claimed Fong.
Springleaf Residence condominium
PropNex CEO Kelvin Fong connected Otto Place’s solid performance to its locational appeal, the decreasing supply of unsold ECs, and buyers’ recognition of climbing EC land expenses, which are anticipated to apply upward pressure on future launch rates.
The 600-unit EC project had earlier marketed 351 units throughout its launch weekend on July 18– 19, reflecting a preliminary take-up rate of 59%. With the more sales yesterday, the tally currently stands at 548 units– over 91%– within one month of launch. Based on caveats lodged to day, the typical price attained is $1,750 psf.
On the other hand, 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. Taking into account high building costs and new gross flooring area harmonisation rules, PropNex anticipates units at the future project– producing around 420 units– to be valued over $1,800 psf.
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer homebuyers of Otto Place exec condominium (EC) on the evening of Tuesday, August 19. An overall of 167 units were marketed during the exercise, according to the developers’ release.
Mark Yip, CEO of Huttons Asia, indicated that second-timers commonly have bigger family sizes and therefore favour larger units. “At Otto Place, all the four-bedroom units are completely marketed,” he stated.
