Shares of property developers Wing Tai Holdings (WTHS.SI) and City Developments (CTDM.SI) fell more than 4% after the Singapore government announced measures to cool the residential property market.

Wing Tai and City Developments have relatively greater exposures to the mass residential segment of the market.

 

The Singapore government’s new measures include decreasing the amount people can borrow to buy second properties to 70% from 80%, as well as extending a stamp duty on sellers who buy and sell within three years. 

 

“Wing Tai and CityDev are down because they have larger exposure to Singapore’s residential property,” a local trader said, adding that the downward trend in the share price is likely to continue for a few days.

 

He said Allgreen (AGRN.SI) and Ho Bee Investment (HBEE.SI) are two other companies that may be similarly affected.