Otto Place 91% sold after second-timer balloting, underscoring EC market strength
Situated at Plantation Close in Tengah in the West Region, 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 incorporated that closeness to institutions and the nearby Jurong Lake Area– reserved as the biggest mixed-use company hub outside the city– boosts the project’s appeal to family groups.
PropNex CEO Kelvin Fong associated Otto Area’s solid productivity to its locational appearance, the decreasing supply of unsold ECs, and buyers’ understanding of climbing EC land expenses, which are anticipated to put in upward stress on future launch costs.
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 very early August. Taking into account high building and construction costs and brand-new gross flooring area harmonisation rules, PropNex anticipates units at the future project– producing about 420 units– to be valued above $1,800 psf.
Joint property developers Hoi Hup Realty and Sunway Developments kept the balloting for second-timer homebuyers of Otto Place exec condominium (EC) on the night of Tuesday, August 19. An overall of 167 units were marketed during the exercise, according to the developers’ introduction.
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 extra sales yesterday, the tally now stands at 548 units– over 91%– within one month of launch. Based on cautions lodged to date, the standard rate attained is $1,750 psf.
According to PropNex, fewer than 60 unsold EC units remain on the marketplace. The most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which sold 90% of units on debut weekend break. The remaining 52 units were grabbed just 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.
“With rate of interest trending downhill, an approximated 85% of purchasers at Otto Place selected the credit system, compared to around 75% in the time of the preliminary July start,” Yip added.
Mark Yip, Chief Executive Officer of Huttons Asia, considered that second-timers usually have bigger family sizes and therefore favour bigger units. “At Otto Place, all the four-bedroom units are fully offered,” he claimed.
Second-timers refer to purchasers that have actually formerly received a housing subsidy from HDB. During an EC’s preliminary release, 70% of units are reserved for first-timers, whilst second-timers are restricted to 30%. This limitation is removed one month after release, with balloting carried out for second-timers who were not successful in obtaining a unit previously.
The following EC launch in the pipeline 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 aim at for launch sometime towards the end of this year, claimed Fong.
