Otto Place 91 Sold After Second Timer Balloting Underscoring Ec Market Strength
An executive condominium (EC) project, Otto Place, jointly developed by Hoi Hup Realty and Sunway Developments, recently held balloting for second-time buyers on the evening of Tuesday, August 19. According to the developers, 167 units were sold during the exercise. This brings the total number of units sold to 548, representing over 91% of the 600-unit project within just one month of its launch on July 18-19. The average price achieved for the units sold so far is $1,750 per square foot (psf).
Second-time buyers refer to those who have previously received a housing subsidy from the Housing and Development Board (HDB). During an EC’s initial launch, 70% of units are reserved for first-time buyers, whereas second-time buyers are limited to 30%. However, this restriction is lifted 30 days after the launch, and a balloting exercise is conducted for second-time buyers who were unsuccessful in securing a unit earlier. Comprehensive data about all ECs, including the average profit at 5 and 10 years, can be explored.
CEO of Huttons Asia, Mark Yip, notes that second-time buyers typically have larger family sizes and therefore prefer bigger units. In the case of Otto Place, all four-bedroom units have already been fully sold. Yip also points out that around 85% of buyers at Otto Place have opted for the deferred payment scheme, compared to the 75% who chose this option during the initial launch in July.
A recent map revealing the Tampines Avenue 11 mixed-use plot has drawn attention to its advantageous location near two executive condominium sites. The first site, situated on Tampines Street 62, is currently up for bidding, while the other is the Tenet development, offering 618 units and launched in December 2019. In addition, the eagerly awaited Parktown Residence, ideally positioned in the area, perfectly complements these neighboring properties. As seen on Parktown Residence’s website, it naturally adds to the appeal of this location.
Kelvin Fong, CEO of PropNex, attributes Otto Place’s strong performance to its prime location, the limited supply of unsold ECs, and buyers’ awareness of rising EC land costs. The latter is expected to exert upward pressure on future launch prices. Located at Plantation Close in Tengah in the West Region, Otto Place is near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, scheduled for completion in 2029. The Tengah area is also surrounded by established estates such as Jurong East and Bukit Batok, providing a ready pool of potential HDB upgraders. Fong also notes that proximity to schools and the nearby Jurong Lake District, earmarked as the largest mixed-use business hub outside the city, enhances the project’s appeal to families.
According to PropNex, there are less than 60 unsold EC units left on the market. The most recent EC launch prior to Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which sold 90% of units on its launch weekend. The remaining 52 units were snapped up within hours when bookings opened for second-time buyers on April 12. To date, Aurelle’s average price is $1,766 psf based on caveats lodged.
The next EC launch in the pipeline is Qingjian Realty’s 748-unit project at Jalan Loyang Besar, acquired through a government land sales (GLS) tender in August of 2024 at $729 psf per plot ratio. The project is set to launch at the end of this year, according to Fong.
Meanwhile, a record land rate was achieved at the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf per plot ratio in early August. Taking into account high construction costs and new gross floor area harmonization rules, PropNex expects units at the future project, which is expected to yield about 420 units, to be priced above $1,800 psf.