Otto Place 91 Sold After Second Timer Balloting Underscoring Ec Market Strength

Otto Place executive condominium (EC), a joint development by Hoi Hup Realty and Sunway Developments, held a balloting event on Tuesday, August 19 for second-timer buyers. The developers reported that a total of 167 units were successfully sold during this exercise.

This comes after the successful launch of 351 units during the project’s opening weekend on July 18-19, with an initial take-up rate of 59%. With the additional 167 units sold during the balloting event, the total number of units sold now stands at 548, which is over 91% of the total 600 units, within just one month of launch. The current average price achieved, based on caveats lodged to date, is $1,750 per square foot (psf).

Second-timer buyers refer to those who have previously received housing subsidies from the Housing and Development Board (HDB). During the initial launch of an EC, 70% of the units are reserved for first-time buyers, with the remaining 30% reserved for second-timer buyers. However, after 30 days from the launch, the restriction for second-timers is lifted and balloting is conducted for those who were unsuccessful in securing a unit earlier.

Located just a stone’s throw away from Sembawang EC lies Sun Plaza, a shopping haven conveniently situated next to Sembawang MRT station. This all-encompassing mall may be small in size, but it packs a punch with its wide array of amenities, making it a must-visit for residents, especially those who rely on the MRT for transportation. Whether you’re in need of a quick meal or in search of essential services, Sun Plaza has got you covered with its plethora of options, from food and beverage outlets to retail shops. You’ll find major supermarkets, pharmacies, fashion outlets, and electronic retailers all under one roof. And for those who love to read, the mall also houses the Sembawang Public Library, making it a convenient spot for students and bookworms alike. When it comes to dining, Sun Plaza spoils you with its diverse offerings. From fast-food joints to family-friendly restaurants, there’s something for everyone. Local food courts and cozy cafes serve up a taste of Singapore’s multicultural cuisine, while international franchises cater to different palates. Don’t forget to check out Sembawang EC Canberra too, located just a stone’s throw away from Sun Plaza.

Mark Yip, CEO of Huttons Asia, highlighted that second-timer buyers typically prefer larger units due to their larger family sizes. He also mentioned that all the four-bedroom units at Otto Place have been fully sold.

With the current trend of decreasing interest rates, approximately 85% of buyers at Otto Place have opted for the deferred payment scheme, which is an increase from the initial launch in July where around 75% of buyers have chosen this option.

Kelvin Fong, CEO of PropNex, attributes the strong performance of Otto Place to its prime location, the limited supply of unsold ECs, and buyers’ understanding of the rising land costs, which are expected to push up future launch prices.

Located at Plantation Close in Tengah, in the West Region, Otto Place is conveniently situated near the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line, which is expected to be completed 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 pointed out that the project’s proximity to schools and the nearby Jurong Lake District, which is set to become the largest mixed-use business hub outside the city, adds to its appeal to families.

According to PropNex, there are currently fewer 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 launch weekend. The remaining 52 units were snapped up within hours when bookings opened for second-timers on April 12. As of now, the average price for units at Aurelle 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, which was acquired through a government land sales (GLS) tender in August 2024 at $729 psf per plot ratio. The project is expected to be launched towards the end of this year, as per Fong.

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 consideration the high construction costs and new gross floor area harmonisation rules, PropNex anticipates that units at the future project, which will have approximately 420 units, will be priced above $1,800 psf.