Singapore real estate stocks fall after news of new market cooling measures announced

SINGAPORE: Shares of Singapore real estate companies fell on Thursday (December 16) after the government unexpectedly announced a series of new measures to cool the private residential and HDB resale markets.

City Developments plunged 3.1%, or S $ 0.22, to S $ 6.85 in early trades. Other developers such as UOL fell 2.1%, or S $ 0.15, to S $ 6.95, while Oxley Holdings lost 3.2% for the latest trade to S $ 0.18 .

Real estate agency PropNex fell 11.2 percent from S $ 0.20 to S $ 1.58.

Meanwhile, APAC Realty fell 13.1%, or S $ 0.10, to S $ 0.66.

The new chill measures involved adjustments to buyer supplemental stamp duty (ABSD) rates and loan-to-value (LTV) limits on residential property purchases.

ABSD rates for Singapore citizens and permanent residents who buy their first residential property remain at 0% and 5% respectively, but those who buy their second or subsequent home will face a 5-15 point increase. percentage of ABSD.

Foreigners and entities will also incur more ABSD when purchasing residential property.

The TDSR threshold will be tightened from 60 percent to 55 percent. It will apply to loans to purchase properties for which the option to purchase is granted on or after December 16, and mortgage loan applications with principal withdrawal made on or after December 16.

In addition, the LTV for HDB loans will be reduced from 90 to 85%. This applies to new flat selling exercise requests launched after December 16 and to full resale requests received by HDB on or after December 16.

Authorities have also pledged to increase the supply of public and private housing to meet demand, and more details are expected to be released on Thursday.

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