Shares of Singapore property firms slip on surprise tax hike (updated)

UOL

27/04/2023 03:16

* 
      City Development, UOL Group eye worst session in 2-1/2
years
    

        * 
      Foreigners stamp duty to hit 60%
    

  
 (Adds background, updates prices)
       SINGAPORE, April 27 (Reuters) - Shares of Singapore
property companies fell on Thursday after the government raised
taxes on private property purchases, including doubling stamp
duty for foreigners.
    Real estate is a popular investment as foreign cash flows
into the city-state. Prices have been steadily increasing and
the move is the strongest in a series of attempts at cooling the
market over the past few years.
    Authorities announced the tax hikes, which also hit locals,
albeit at much lower rates, late on Wednesday and said they were
in response to "renewed signs of acceleration".
    Shares of developer City Development  CTDM.SI  fell 3.7% on
Thursday and UOL Group  UTOS.SI  dropped 3.2%. If sustained it
would mark the worst session for both stocks in 2-1/2 years.
        Real estate investment manager CapitaLand Investment
 CAPN.SI  stock lost 0.8%, among other property-linked losers in
early trade.
    The broader Straits Times index  .STI  fell 0.5%. The
benchmark iEdge index of Singapore real estate investment trusts
 .SREIT  fell 0.5%.
        Stamp duty on foreigners property purchases doubled to
60%, effective from Thursday. Duties on Singaporeans' second and
subsequent home purchases rose to 20% from 17%, and 30% from
25%, respectively.
    

 (Reporting by Rae Wee; Editing by Jacqueline Wong and Sam
Holmes)
 ((Rae.Wee@thomsonreuters.com;))