Singapore property stocks decline after announcement of new market cooling measures

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SINGAPORE — Shares of Singapore’s property firms tanked on Thursday (Dec 16) after the Government unexpectedly announced a slew of new measures to cool the private residential and HDB resale markets.

City Developments plunged 3.1 per cent, or S$0.22, to S$6.85 in early trade. Other developers such as UOL fell 2.1 per cent, or S$0.15, to S$6.95, while Oxley Holdings lost 3.2 per cent to last trade at S$0.18.Meanwhile, real estate brokerage APAC Realty retreated 13.1 per cent, or S$0.10, to S$0.66.

The ABSD rates for Singapore citizens and permanent residents buying their first residential property remain at 0 per cent and 5 per cent respectively, but those purchasing their second or subsequent home will face a 5 to 15 percentage point increase in ABSD.The TDSR threshold will be tightened from 60 per cent to 55 per cent.

The authorities also pledged to increase the supply of both public and private housing to meet demand, with more details expected to be released on Thursday. “If left unchecked, prices could run ahead of economic fundamentals, and raise the risk of a destabilising correction later on. Borrowers would also be vulnerable to a possible rise in interest rates in the coming years," they added.

 

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