Singapore real estate firms drop on govt curbs to cool property prices

APAC Realty

16/12/2021 04:18

** Shares of property developers City Developments Ltd
 CTDM.SI  and UOL Group Ltd  UTOS.SI  fall as Singapore tightens
curbs to cool buoyant property market
    ** Singapore on Wednesday announced a series of measures,
including raising stamp duties and tightening loan limits, to
check rising property prices  urn:newsml:reuters.com:*:nL1N2T01OB
    ** CTDM shares down as much as 4.1%, their sharpest fall
since July; UTOS drops up to 3%, biggest intraday pct loss since
May
    ** Shares of real estate agencies Propnex Ltd  PROP.SI  and
APAC Realty Ltd  APAC.SI  dive 14% and 15%, on track for worst
sessions since 2018 in heavy trading
    ** Citi sees benign impact to property prices but adds that
the en-bloc market will be dampened
    ** "We expect kneejerk negative share price reaction to
CityDev and UOL Group in the region of 3%-8%," the broker said,
but added it does not expect it to be comparable to price
reactions post July 18 cooling measures
    ** Despite the economic impact of COVID-19, private housing
prices have risen by about 9% since the first quarter of 2020,
while public housing resale flat prices have increased about 15%
    ** YTD, CTDM has declined 10.8% and UTOS has fallen ~8%,
while APAC and PROP have risen 77.7% and 128.2%

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))