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Higher property taxes to have negative impact on developers and property agencies: CGS-CIMB

The Edge Singapore
The Edge Singapore2/20/2022 10:14 PM GMT+08  • 2 min read
Higher property taxes to have negative impact on developers and property agencies: CGS-CIMB
However, rental rates may go higher to make up for the higher taxes
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The government’s moves to tap the wealthy for a bigger proportion of its tax revenues, might cause a “downward knee-jerk reaction” to the share prices of developers and property agencies, says CGS-CIMB.

“We are surprised by the increase in property tax, especially after the recent hike in Additional Buyers’ Stamp Duty rates and tightening Total Debt Service Ratio announced in Dec 21,” says the brokerage's head of research Lim Siew Khee in her Feb 19 report.

CGS-CIMB believes the higher taxes will have a negative impact on counters such as UOL Group, City Developments, Propnex and APAC Realty.

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