Bad performance for Singapore developers

Reading Time: 2 minutes

Singapore panoSingapore’s property developers posted the worst performance on the benchmark Straits Times Index in 2013 after recording the biggest gains in 2012 as property curbs drove home sales lower and slowed price gains, Bloomberg reported.

Property stocks in Singapore, ranked the most-expensive city to buy a luxury home in Asia after Hong Kong, may further languish next year after the government took measures to cool prices. Home sales may decline 10 percent in 2014 while prices are expected to drop for the first time in two years.

The property curbs, which included stamp duties and other taxes on home purchases, led Citigroup Inc. and UBS AG to rate the city’s residential developers underweight in the past two months. CapitaLand Ltd. and City Developments Ltd., the nation’s two biggest listed developers, were among the three worst performers on the index after being in the top 10 last year.

The city state began introducing residential curbs four years ago. The government of Prime Minister Lee Hsien Loong intensified efforts this year as prices jumped to a record, driven by low interest rates, demand from Singaporeans to upgrade from public housing, as well as purchases by overseas buyers.

The measures included a cap on debt at 60 per cent of a borrower’s income. That policy and other curbs have moderated property transactions and housing loan growth, the Monetary Authority of Singapore said in its annual review of financial stability earlier this month, adding that the government will monitor the market and take further steps if needed.

Prices and transaction volumes of Singapore residential properties are expected to decline for the rest of the year due to the cumulative impact of government measures. Sales of new private homes could drop to 15,000 units in 2013 from 22,197 in 2012, according to CBRE Research.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Singapore’s property developers posted the worst performance on the benchmark Straits Times Index in 2013 after recording the biggest gains in 2012 as property curbs drove home sales lower and slowed price gains, Bloomberg reported.

Reading Time: 2 minutes

Singapore panoSingapore’s property developers posted the worst performance on the benchmark Straits Times Index in 2013 after recording the biggest gains in 2012 as property curbs drove home sales lower and slowed price gains, Bloomberg reported.

Property stocks in Singapore, ranked the most-expensive city to buy a luxury home in Asia after Hong Kong, may further languish next year after the government took measures to cool prices. Home sales may decline 10 percent in 2014 while prices are expected to drop for the first time in two years.

The property curbs, which included stamp duties and other taxes on home purchases, led Citigroup Inc. and UBS AG to rate the city’s residential developers underweight in the past two months. CapitaLand Ltd. and City Developments Ltd., the nation’s two biggest listed developers, were among the three worst performers on the index after being in the top 10 last year.

The city state began introducing residential curbs four years ago. The government of Prime Minister Lee Hsien Loong intensified efforts this year as prices jumped to a record, driven by low interest rates, demand from Singaporeans to upgrade from public housing, as well as purchases by overseas buyers.

The measures included a cap on debt at 60 per cent of a borrower’s income. That policy and other curbs have moderated property transactions and housing loan growth, the Monetary Authority of Singapore said in its annual review of financial stability earlier this month, adding that the government will monitor the market and take further steps if needed.

Prices and transaction volumes of Singapore residential properties are expected to decline for the rest of the year due to the cumulative impact of government measures. Sales of new private homes could drop to 15,000 units in 2013 from 22,197 in 2012, according to CBRE Research.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid