SINGAPORE – Shares of Singapore property companies fell on Thursday after the government raised taxes on private property purchases, including doubling stamp duty for foreigners.
Real estate is a popular investment as foreign cash flows into the city-state. Prices have been steadily increasing and the move is the strongest in a series of attempts at cooling the market over the past few years.
Authorities announced the tax hikes, which also hit locals, albeit at much lower rates, late on Wednesday and said they were in response to “renewed signs of acceleration”.
Shares of developer City Development fell 3.7 percent on Thursday and UOL Group dropped 3.2 percent. If sustained it would mark the worst session for both stocks in 2-1/2 years.
Real estate investment manager CapitaLand Investment stock lost 0.8 percent, among other property-linked losers in early trade.
The broader Straits Times index fell 0.5 percent. The benchmark iEdge index of Singapore real estate investment trusts fell 0.5 percent.
