Home THE DAILY EDGE Business Singapore developer bonds slide as rules added to cool prices
Singapore developer bonds slide as rules added to cool prices

Tags: Capitaland | City Developments

Written by Bloomberg   
Monday, 30 August 2010 11:10
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Bonds of CapitaLand, Southeast Asia’s biggest developer, fell after Singapore added to measures designed to cool the city-state’s real estate market.

CapitaLand’s $250 million in 4.35% notes due 2019 fell to 101.88 cents on the dollar from 102.48 cents on Aug 27, the lowest in about two weeks, according to Standard Chartered Plc prices. The yield on the $350 million of 4.3%, 10-year bonds it sold this month rose to 4.259% from 4.166.

City Developments’s $90 million in 2.92% notes due 2014 fell to 101.68 cents, the lowest since Aug 10, according to DBS Group Holdings. City Developments is Singapore’s second-largest property company.

Singapore will levy a seller’s stamp duty on residential units and land sold within three years from the date of purchase, compared with one year now, the Ministry of National Development said today. Buyers who hold more than one mortgage will only be able to borrow up to 70% of the value of a new purchase, it added.

Private residential prices rose 38% in the second quarter from a year earlier, according to the Urban Redevelopment Authority.

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Last Updated on Monday, 30 August 2010 11:11