Otto Place Achieves 91% Sales as EC Market Regains Strong Momentum

Otto Place EC Sells 91% Within a Month of Launch

Otto Place, the latest executive condominium (EC) project located at Plantation Close in Tengah, has recorded a sales rate of over 91% just one month after its launch, underscoring resilient demand in the EC segment.

Jointly developed by Hoi Hup Realty and Sunway Developments, the 600-unit development sold an additional 167 units during the second-timer balloting on 19 August. Combined with the 351 units snapped up during its launch weekend on 18–19 July, cumulative sales reached 548 units as of 20 August. Based on lodged caveats, the project achieved an average transacted price of S$1,750 psf.

Robust Demand from Second-Timer Buyers

Second-timer buyers served as the primary growth engine in this round of sales. Second-timers refer to buyers who have previously enjoyed Housing & Development Board (HDB) housing subsidies. Under prevailing regulations, 70% of units are reserved for first-time buyers during the initial EC launch phase, with the remaining 30% allocated to second-timers. The quota restriction is lifted after 30 days, allowing developers to conduct balloting for second-timers who missed out during the initial launch.

Second-timers often have larger households and naturally gravitate towards larger layouts. At Otto Place, all four-bedroom units have completely sold out. He added that amid an easing interest rate environment, around 85% of buyers opted for the Deferred Payment Scheme (DPS), up from approximately 75% during the initial launch.

Strategic Location and Market Drivers

The strong performance at Otto Place was primarily driven by its prime location attributes, tightening EC supply across the island, and buyer expectations of rising EC land prices in upcoming tenders.

Otto Place is in close proximity to the upcoming Tengah Park and Bukit Batok West MRT stations on the Jurong Region Line (slated for completion in 2029). Situated between Jurong East and Bukit Batok, the new Tengah town enjoys a substantial catchment of potential HDB upgraders. Furthermore, the project is situated near established schools and the future Jurong Lake District (JLD)—designated to be Singapore's largest business hub outside the city centre—making it particularly appealing to family buyers.

Tight EC Inventory and Upcoming Pipelines

Currently, fewer than 60 unsold EC units remain in the market. Prior to Otto Place, the most recent EC launch was Aurelle of Tampines, developed by Sim Lian Group. That project moved 90% of its units over its launch weekend in March this year, with the remaining 52 units fully snapped up within hours during the second-timer launch in April. To date, Aurelle has transacted at an average price of S$1,766 psf.

Looking ahead, Qingjian Realty's 748-unit EC project at Jalan Loyang Besar is expected to launch by the end of this year; the site was awarded in August 2024 under the Government Land Sales (GLS) programme at S$729 psf per plot ratio (psf ppr). In addition, the Woodlands Avenue 17 EC plot set a new record tender in August this year, awarded to City Developments Limited (CDL) at S$782 psf ppr. Factoring in high construction costs and the new Gross Floor Area (GFA) harmonisation guidelines, analysts forecast launch prices for this future site to exceed S$1,800 psf.

With Otto Place clearing over 90% of its inventory within a single month, the resilient, owner-occupier-driven nature of the EC market is once again evident. Backed by tight supply and escalating future development costs, EC prices are expected to remain firm, continually drawing HDB upgraders and second-timers into the market.