Otto Place 91 Sold After Second Timer Balloting Underscoring Ec Market Strength
Joint developers Hoi Hup Realty and Sunway Developments held a successful balloting event on Tuesday, August 19 for second-time buyers of the executive condominium (EC), Otto Place. The developers announced that 167 units were sold during the exercise, bringing the total number of units sold to 548 within one month of its launch. This translates to an impressive initial take-up rate of 59%.
During its launch weekend on July 18-19, the 600-unit EC had already sold 351 units, indicating a strong demand for the development. According to the developers, the average price achieved for the units sold is $1,750 per square foot (psf) based on caveats lodged to date.
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Second-time buyers refer to those who have previously received a housing subsidy from the Housing and Development Board (HDB). In the initial launch of an EC, 70% of units are reserved for first-time buyers, while the remaining 30% are set aside for second-time buyers. This restriction is lifted after 30 days, and a balloting exercise is conducted for unsuccessful second-time buyers to secure a unit.
Mark Yip, CEO of Huttons Asia, noted that second-time buyers typically have larger family sizes and therefore prefer bigger units. “At Otto Place, all the four-bedroom units have been fully sold,” he said.
With interest rates on a downward trend, around 85% of buyers at Otto Place have chosen the deferred payment scheme compared to 75% during the initial launch in July, as per Yip.
According to Kelvin Fong, CEO of PropNex, the strong performance of Otto Place can be attributed to its strategic location, the limited supply of unsold ECs, and buyers’ awareness of rising EC land costs that are expected to drive up prices in future launches.
Situated at Plantation Close in Tengah, a developing area in Singapore’s West region, Otto Place is in close proximity to the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, set to be completed in 2029. The development is also surrounded by established estates such as Jurong East and Bukit Batok, providing a ready pool of potential HDB upgraders. Fong added that the project’s convenience to schools and the nearby Jurong Lake District, earmarked as the largest mixed-use business hub outside the city, further enhances its appeal to families.
PropNex revealed that there are now fewer than 60 unsold EC units in the market. The most recent EC launch before Otto Place was Sim Lian Group’s 760-unit Aurelle at Tampines in March, which sold 90% of its units on the launch weekend. The remaining 52 units were snapped up within hours when bookings were opened for second-time buyers on April 12. To date, the average price of units at Aurelle is $1,766 psf based on caveats lodged.
The next EC launch on the horizon is a 748-unit project by Qingjian Realty at Jalan Loyang Besar. The land for this project was acquired through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. Fong stated that the project is targeted for launch towards the end of this year.
Meanwhile, a record land rate was set at the recent EC GLS tender at Woodlands Drive 17, where City Developments Ltd paid $782 psf ppr in early August. Taking into account high construction costs and new gross floor area harmonisation rules, PropNex expects units at the upcoming project – which will yield around 420 units – to be priced above $1,800 psf.
