Singapore developer stocks may fall on surprise property curbs
Singapore property stocks are set for knee-jerk declines after the government unexpectedly tightened property curbs to cool a market the central bank described as euphoric.
The announcement of higher stamp duty rates and tougher loan-to-value limits for buyers ran counter to the market sentiment earlier in the day. Investors had pushed shares of property developers’ higher, with the index tracking these stocks rising the most in two weeks despite a warning from the central bank chief that there was “a euphoria” in the housing market.
Property developers that have been aggressive buyers of government land sales or collective sales of existing apartment buildings may be hit by the curbs.