Singapore developers fall after tighter home-loan rules [The Edge]

Master乌龟

Singapore’s major residential-property developers slump after local regulators tightened home-loan rules to temper the island’s real-estate market, capping all new loan tenures at 35 years and lowering loan-to-value ratios for loans of over 30 years.

CapitaLand falls most, down 2.7% at $3.21, while City Developments slides 2.2% to $11.69; Keppel Land retreats 1.1% to $3.52 while UOL Group drops 1.4% to $5.71. Their declines are weighing on the STI, last down 0.6% at 3,089.3.

“In the near term, the reduced investment demand is likely to see a 20%-30% moderation in volumes and an 8%-10% year-on-year fall in prices,” says UOB KayHian analyst Vikrant Pandey, who adds investment demand may be hurt more in the mass market than in the high-end market, where buyers are generally cash-rich. “We view any knee-jerk reaction (about a 5%-10% fall in share prices) as presenting buying opportunities,” he notes, tipping CapitaLand and Ho Bee as top buys.

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