Otto Place 91 Sold After Second Timer Balloting Underscoring Ec Market Strength
Joint developers Hoi Hup Realty and Sunway Developments successfully held the balloting for second-timer buyers of Otto Place executive condominium (EC) on Tuesday evening, August 19. A total of 167 units were sold during the event, according to a statement released by both developers.
During the launch weekend on July 18-19, the 600-unit EC project had already sold 351 units, which reflected an initial take-up rate of 59%. With the additional sales from the recent balloting, the total number of units sold now stands at 548, which is over 91% of the total units available. According to the data gathered from caveats lodged to date, the average price achieved is $1,750 per square foot.
Second-timers refer to buyers who have previously received a housing subsidy from the Housing and Development Board (HDB). During the initial launch of an EC, 70% of the units are reserved for first-timers, while second-timers are limited to 30%. However, this restriction is lifted 30 days after the launch, and balloting is conducted for second-timers who were unsuccessful in securing a unit earlier.
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Mark Yip, CEO of Huttons Asia, noted that second-timer buyers typically have larger family sizes, which is why they prefer bigger units. In the case of Otto Place, all the four-bedroom units have already been fully sold.
Interest rates have been trending downwards, which is why an estimated 85% of buyers at Otto Place have chosen the deferred payment scheme. This number is higher compared to the 75% recorded during the initial launch in July, according to Yip.
On the other hand, Kelvin Fong, CEO of PropNex, attributed the strong performance of Otto Place to factors such as its locational appeal, the dwindling supply of unsold ECs, and buyers’ awareness of rising EC land costs, which are expected to put upward pressure on future launch prices.
The project is located at Plantation Close in Tengah, which is in the West Region. It is near the upcoming Tengah Park and Bukit Batok West MRT stations, which are part of the Jurong Region Line, and are expected to be completed in 2029. The Tengah area is also close to Jurong East and Bukit Batok estates, which provides a ready pool of potential HDB upgraders. Fong added that the project’s proximity to schools and the nearby Jurong Lake District, which has been earmarked to become the largest mixed-use business hub outside the city, also enhances its appeal to families.
According to PropNex, there are fewer than 60 unsold EC units remaining on the market. The most recent EC launch before Otto Place was the 760-unit Aurelle at Tampines in March, which sold 90% of its units during the launch weekend. The remaining 52 units were also quickly snapped up within hours when bookings opened for second-timers on April 12. To date, the average price at Aurelle is $1,766 per square foot based on caveats lodged.
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The next EC launch in the pipeline is Qingjian Realty’s 748-unit project at Jalan Loyang Besar. The land was acquired through a government land sales (GLS) tender in August 2024 at $729 per square foot per plot ratio. According to Fong, the project is expected to be launched towards the end of this year.
In August, a record land rate was set during the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 per square foot per plot ratio. Taking into account high construction costs and the new gross floor area harmonisation rules, PropNex expects the units at the future project, which will yield about 420 units, to be priced above $1,800 per square foot.