Singapore property curbs won’t dent home prices: Citi

Latest measures by Singapore to cool housing market expected to result in lower sales volume in short term, but won’t have significant impact on home prices, says Citigroup, according to Dow Jones.

“With the wide spread between rental yields of mass-market properties at above 4% and mortgage rates as low as 1%, such properties remain a highly attractive investment vehicle for many seeking higher returns than bank deposits,” says Citi.

The research house notes, however, measures could further dampen already-weak high-end residential segment. Favours Singapore REITs over developers, with Ascendas REIT (A17U.SG), Mapletree Logistics Trust (M44U.SG), Frasers Centrepoint Trust (J85.SG), Parkway Life (C2PU.SG) being top picks.

With immediate effect, government will impose stamp duty on anyone selling private property within 3 years from time of purchase, double minimum cash payment to 10% of property’s valuation for existing home owners buying another property, cut borrowing limit for such buyers to 70% from 80% of property’s value.

Source : The Edge – 30 Aug 2010

Join The Discussion

Compare listings