Otto Place 91% sold after second-timer balloting, underscoring EC market strength
PropNex CEO Kelvin Fong connected Otto Area’s solid productivity to its locational demand, the decreasing supply of unsold ECs, and buyers’ understanding of increasing EC land costs, which are expected to put in upward pressure on future launch prices.
Mark Yip, CEO of Huttons Asia, indicated that second-timers normally have bigger family sizes and therefore favour larger units. “At Otto Place, all the four-bedroom units are fully offered,” he claimed.
The following EC launch in the pipe is Qingjian Realty’s 748-unit job at Jalan Loyang Besar, got through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is intended for launch at some time towards completion of this year, claimed Fong.
Canberra Crescent Residences Singapore
Second-timers refer to investors who have formerly gotten a real estate subsidy from HDB. Throughout an EC’s preliminary release, 70% of units are reserved for first-timers, even though second-timers are restricted to 30%. This constraint is lifted one month after release, with balloting performed for second-timers who were not successful in securing a unit previously.
The 600-unit EC property had earlier marketed 351 units throughout its launch weekend on July 18– 19, reflecting a first take-up rate of 59%. With the extra sales yesterday, the tally now stands at 548 units– over 91%– in just one month of launch. Based on cautions lodged to day, the average cost attained is $1,750 psf.
“With interest rates trending downhill, an approximated 85% of buyers at Otto Place selected the deferred payment plan, contrasted to around 75% during the preliminary July launch,” Yip added.
Located at Plantation Close in Tengah in the West Region, Otto Place is close to the upcoming Tengah Park and Bukit Batok West MRT terminals 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 schools and the close-by Jurong Lake District– earmarked as the biggest mixed-use service center outside the city– boosts the property’s interest households.
Joint developers Hoi Hup Realty and Sunway Developments hosted the balloting for second-timer homebuyers 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.
According to PropNex, less than 60 unsold EC units continue to be 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, which offered 90% of units on debut weekend break. The remaining 52 units were gotten in just hours when bookings opened up for second-timers on April 12. To day, Aurelle’s average price is $1,766 psf based upon caveats lodged.
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 floor area harmonisation rules, PropNex expects units at the future project– generating about 420 units– to be priced over $1,800 psf.
