Singapore developers rise on reprieve from penalties on unsold property

UOL

07/02/2020 04:02

SINGAPORE, Feb 7 (Reuters) -    ** Shares of developers
such as City Developments  CTDM.SI  and UOL Group  UTOS.SI  rise
slightly even as broader market  .STI  drops 
    ** Stocks rise after Singapore decides to exempt listed
developers with a "substantial connection" to city-state from
"qualifying certificate" regime   
    ** Regime imposes conditions when a property firm that is
not considered a Singapore company buys residential land for
development. Previously, listed companies were not considered
Singaporean if they had even one foreign shareholder
    **  Regime requires firms to complete development within
five years and sell all units within two years of completion or
pay extension charges. Rule ensures developers build and sell
apartments in a timely manner and do not hoard.  
    ** "This (rule change) should lower charges for inability to
sell all units in en bloc projects in due time ... We see it as
selective easing helping local builders while maintaining price
stability," Jefferies says.   
   ** City Developments up as much as 2% at S$11.22, UOL Group
up 1.2% at S$8.25

 (Reporting by Aradhana Aravindan in Singapore)
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659;))