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Developers' shares down at market open following latest round of cooling measures

The Edge Singapore
The Edge Singapore • 1 min read
Developers' shares down at market open following latest round of cooling measures
Photo: Samuel Isaac Chua
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Share prices of several developers dropped on opening this morning, following a new set of cooling measures imposed by the government.

As at 9.09am, CapitaLand Investments was down as five cents, or 1.29%, to $3.84; City Developments was down 23 cents, or 3.14% to $7.09. UOL Group, meanwhile, was down 19 cents, or 2.64% to $7.

As part of the new measures, foreign buyers are to pay an ABSD of 60%, double what they used to pay.

According to DBS Group Research, this rate is the most hefty of its kind in the world.

Singaporeans, meanwhile, are to pay an ABSD of 20% for their second property, up from 17% now.

"We anticipate that prospective buyers, especially investors, are now faced with higher ABSD rates, and will most likely hold back their purchase decisions.

See also: Mandarin Oriental to sell interests in two retail units in Paris for EUR148 mil

"This will likely result in a transaction volume drop in coming launches," says DBS in its note on April 27.

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