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The new executive condominium (EC) development in Tengah, Otto Place, has received an overwhelming response on its launch day. According to a media statement issued at 6.30pm on July 19, the joint developers, Hoi Hup Realty and Sunway Developments, sold 351 out of the 600 units (58.5%) on its launch day.
The units sold under the Normal Payment Scheme (NPS) were priced at an average of $1,700 per square foot (psf). A significant portion of buyers, approximately 72%, opted for the Deferred Payment Scheme (DPS), which came with a 3% premium over NPS prices. This scheme allows homebuyers to make a purchase first and save up during the construction period, easing the financial burden for HDB upgraders who may still have an outstanding loan on their flat, according to Mark Yip, CEO of Huttons Asia.
The unit sizes at Otto Place range from 872 sq ft for three-bedroom deluxe types, which are priced from $1.41 million ($1,617 psf), to 1,195 sq ft for four-bedroom plus study luxury types, fetching $2.18 million ($1,824 psf). As per Huttons, the larger units, such as three-bedroom luxury and four-bedroom types, were in high demand with over 70% sold. “These were probably bought by HDB upgraders seeking more space and flexibility,” Yip adds.
Located in Singapore’s first eco-friendly and car-lite new town, Plantation District of Tengah, Otto Place is within walking distance of two MRT stations, Tengah Park and Bukit Batok West, on the upcoming Jurong Region Line. It also falls within 1km of Princess Elizabeth Primary School, one of the three most oversubscribed schools in 2025, and close to several other primary and secondary schools. The site is also within 2km of Anglo-Chinese School (Primary), which is set to open in 2030.
Launched after the success of the neighbouring project Novo Place, a 504-unit executive condo, Otto Place is the third EC launch in Tengah. The first EC in Tengah, Copen Grand, a 639-unit development by City Developments Ltd (CDL) and MCL Land, was a success as well. It sold 73% of units on launch day at an average price of $1,300 psf, with DPS buyers paying a 3% premium. When the e-application for second-timers opened in November 2022, the remaining 146 units were snapped up within a few hours, resulting in Copen Grand being fully sold out within a month. Transacted prices ranged from $1.09 million for a two-bedroom plus study unit to $2.17 million for a five-bedroom premium unit.
In an EC launch, 70% of the units are allocated to first-time buyers, while the remaining 30% are allocated to second-time HDB buyers. However, second-timers who were unsuccessful at launch will have another opportunity when e-booking opens on August 19. According to PropNex CEO Kelvin Fong, the 30% quota for second-timers at Otto Place was reached on the first day of launch. He believes ECs will remain “a top favorite” among homebuyers due to their relative affordability compared to new 99-year leasehold private condominiums in the Outside Central Region (OCR).
In summary, there are considerable benefits to be gained from investing in a condominium in Singapore. These include a strong demand for properties, potential for future increase in value, and attractive rental returns. However, it is crucial to carefully assess various factors such as location, financing options, governmental regulations, and market trends before making any investment decisions. By conducting thorough research and seeking advice from experts, investors can make well-informed choices and maximize their earnings in Singapore’s thriving real estate market. Whether you are a local looking to diversify your investment portfolio or a foreign buyer seeking a secure and lucrative opportunity, the new condo launches in Singapore provide an enticing prospect. With careful consideration and prudent decision-making, these properties offer a strong potential for profitable returns. And for the latest updates on new condo launches, be sure to check out Hi-Tech Bikes.
The government should consider increasing the quota for second-time HDB buyers to 50%, to support the sandwiched class who want to upgrade to an EC, suggests Huttons’ Yip.