The balloting exercise for the Otto Place executive condominium (EC) proves strong demand in the Singapore’s EC market and its favourable location. The balloting exercise was held by developers Hoi Hup Realty and Sunway Developments. This was a record achievement that was marked by the sale of 167 lots. This is a great achievement as 548 of the 600 units are now sold in this exclusive development- which works out to a proud 91% sales rate in just over a month, since launching!
Earlier The project’s first launch weekend on July 18–19 saw a strong response, with 351 units snapped up after the price list was released, representing an initial take-up rate of 59%. The favourable pricing of $1,750 psf (average), in conjunction with good location, has evidently struck a chord with the prospective buyers, fuelled further by an increase in demand from second-timer buyers – those who have previously enjoyed a housing subsidy from the Housing and Development Board (HDB). Usually, in the initial sales period of an EC, just 30% of the units are available to these second-timers – a restriction relaxed drastically after 30 days, which is why the latest balloting exercise was held.
Responding to the specific pull of larger units for second-timers, Huttons Asia CEO Mark Yip said it could be due to their generally bigger household sizes. This is evident from the success of the four-bedroom units, which are fully sold. In addition, Yip cited a falling interest rate environment as another motivator for potential buyers, adding that about 85 per cent of the new homeowners took up the deferred payment scheme, which was up from the 75 per cent seen during the July launch.
Another attraction of Otto Place is its location in Tengah’s Plantation Close, set in Singapore’s up-and-coming West Region. The project is also poised to ride on future transport nodes such as the Tengah Park MRT and Bukit Batok West MRT stations which are part of the new Jurong Region Line that will transform how people commute within the area when they are completed in 2029.
The Tengah region itself is located in between important estates such as Jurong East and Bukit Batok – these are also regions with a sizeable number of potential HDB upgraders who are looking at improving their way of life. CEO of PropNex Kelvin Fong has noted the lack of availability of unsold ECs and the locational attractiveness of Otto Place in addition to the levels of consciousness among clients regarding the increasing cost of land that could lead to an appreciation of EC prices as two major reasons for the project thriving.
Despite this rising tide of demand, there are less than 60 unsold EC units in the market. The most recent EC launch before Otto Place would be Sim Lian Group’s 760-unit Aurelle at Tampines where 90 per cent of the units were sold over its launch weekend. Aurelle’s handful of unsold units were also snapped up within a few hours after they were opened up for sale to second-timer buyers.
For the future, there is no indication that the EC market will hit a brake. All eyes are also on Qingjian Realty’s next developments, a 748-unit condo complex in Jalan Loyang Besar which it picked up in a government land sale back in August 2024 at a price of $729 per square foot per plot ratio. This can be expected to be brought forward during the later part of 2019, and it will be nothing short of another thrilling channel for homebuyers and investors. On the same note, a Woodlands Drive 17 site in a recent government land sale fetched a record price, which also reflects continuously increasing demand for and investor confidence in the Singapore EC market.
Those who are keen to discover more about possibilities at Otto Place or other Emerald Coast projects, PropNex or CC office site is a useful platform for comprehensive property research including extensive project information, floor plans and site plans, up-to-date site progress and analysis and investment write-ups. The rising EC sector remains attractive to the market, representing an important part of Singapore’s vibrant property market.
