{"id":98473,"date":"2018-09-25T11:00:10","date_gmt":"2018-09-25T04:00:10","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/investors-eschew-property-developers-post-cooling-measures\/"},"modified":"2018-09-25T11:02:51","modified_gmt":"2018-09-25T04:02:51","slug":"investors-eschew-property-developers-post-cooling-measures","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/investors-eschew-property-developers-post-cooling-measures\/","title":{"rendered":"Investors eschew property developers post cooling measures"},"content":{"rendered":"


\nWeak interest seen for developer shares in Singapore.\u00a0
\nStock pickers are shunning home builders in favour of Singapore real estate investment trusts (S-REITs) following the imposition of new real estate curbs in July, reported Bloomberg.
\n\u201cThe market had not expected the severity of the measures announced,\u201d said Vijay Natarajan, an analyst with RHB Research Institute Singapore. As such, there is weak interest in the shares of developers, while investments in the private residential market have shifted to other sectors.
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\nFor most of last year and in the first half of 2018, stock prices of local property developers rallied. Coupled with appreciating prices and growing sales, these signs indicated that the city-state\u2019s private housing market was on the rebound.
\nBut in a surprise move, the government introduced new cooling measures on 6 July. These included tighter loan-to-value (LTV) ratios that compel home buyers to fork out more cash when buying a home. For foreigners purchasing homes here, the Additional Buyer\u2019s Stamp Duty (ABSD) was raised from 15 percent to 20 percent.
\nThese are going to drag down home sales and prices, noted Jefferies Singapore analyst Krishna Guha, adding that home builders may slash private condo prices by up to 10 percent due to the new curbs.
\n\u201cDeveloper stocks are subject to high policy risk,\u201d noted Bloomberg Intelligence analysts Patrick Wong.
\nIn fact, an index that tracks home builders has fallen 5.4 percent since 5 July, even though it saw the highest five-year increase in 2017. On the other hand, that for S-REITs edged up by 0.7 percent during the same period.
\n\u201cReal estate investment demand will further concentrate on the commercial market and support the growth in capital value of commercial properties owned by major landlords,\u201d Wong added.
\nEstimate your maximum property affordability with our\u00a0Affordability Calculator
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Investors eschew property developers post cooling measures<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Weak interest seen for developer shares in Singapore.\u00a0 Stock pickers are shunning home builders in...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-98473","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-pCh","jetpack-related-posts":[{"id":93485,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-developers-group-attacks-latest-government-measures-to-cool-states-property-prices\/","url_meta":{"origin":98473,"position":0},"title":"Singapore developers\u2019 group attacks latest government measures to cool state\u2019s property prices","date":"July 9, 2018","format":false,"excerpt":"\r A leading developers\u2019 group in Singapore has challenged the government\u2019s latest round of property-cooling measures, saying that there\u2019s no rationale for the planned steps as the market is only in the early stages of a recovery, The Straits Times has reported. Singapore\u2019s renewed clampdown on speculative property demand sent\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":97200,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-that-acquired-expensive-land-to-feel-brunt-of-new-property-curbs\/","url_meta":{"origin":98473,"position":1},"title":"Developers that acquired expensive land to feel brunt of new property curbs","date":"September 4, 2018","format":false,"excerpt":"\r Experts revealed that real estate developers that bought pricey land in Singapore\u2019s prime districts during the most recent en bloc cycle prior to the implementation of the new property curbs are the most at risk from the fresh cooling measures, reported the Business Times. The city-state\u2019s prime areas are\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":123853,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-property-stocks-fall-amid-new-cooling-measures\/","url_meta":{"origin":98473,"position":2},"title":"Singapore property stocks fall amid new cooling measures","date":"December 17, 2021","format":false,"excerpt":"\r The latest round of cooling measures, which saw higher ABSD rates, a tighter TDSR threshold and a lower LTV limit for HDB-granted loans, impacted Singapore property stocks negatively. Singapore\u2019s property firms saw their shares drop on Thursday (16 December) following the Government\u2019s unexpected announcement of new property cooling measures,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/singapore-city.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":58322,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/real-estate-stocks-rally\/","url_meta":{"origin":98473,"position":3},"title":"Real estate stocks rally","date":"June 19, 2017","format":false,"excerpt":"\r \u00a0 Shares of Singapore-listed property players are poised to achieve their highest annual gain in five years, with experts believing that the good times would continue, reported Bloomberg. So far this year, developers and property trusts, including UOL Group and City Developments Limited, account for five out of 10\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29465,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinese-developer-shares-plunge-after-property-curbs\/","url_meta":{"origin":98473,"position":4},"title":"Chinese developer shares plunge after property curbs","date":"October 11, 2016","format":false,"excerpt":"\r Dongguan the latest Chinese city to rein in surging market Shenzhen Stock Exchange building. zhu difeng \/ Shutterstock.com Shares in China\u2019s real estate firms faltered steeply after a wave of cooling measures swept bubbly housing markets during the week-long holidays around National Day. Staggering losses by mainland developers such\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20908,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/weak-sentiment-continues-to-hurt-spore-property-market\/","url_meta":{"origin":98473,"position":5},"title":"Weak sentiment continues to hurt S\u2019pore property market","date":"July 13, 2016","format":false,"excerpt":"\r Aerial view of high-rise apartment buildings in Singapore. Real Estate Developers\u2019 Association of Singapore (Redas) President Augustine Tan believes weak market sentiment continues to weigh down on Singapore\u2019s property market, reported The Straits Times. 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