SINGAPORE – The shares of Singapore developers took an immediate hit on Thursday morning (Dec 16) from property cooling measures announced overnight, but local banks resisted declines with support coming from the US Federal Reserve move to faster interest rate hikes.

At close to midnight on Wednesday (Dec 15), the Government announced a new round of property curbs to cool the private residential and HDB resale markets after prices surged despite the Covid-19 pandemic.

With effect from Dec 16, additional buyer’s stamp duty (ABSD) rates will be raised, and the total debt servicing ratio (TDSR) threshold will be tightened. The limit for housing loans for Housing Board flats will also be lowered from 90 per cent to 85 per cent. In addition, the Government will increase public and private housing supply to cater to demand.

Shares of City Developments Ltd fell on the news, with CDL down 24 cents or 3.4 per cent to $6.83 at 9.25am. UOL Group shares lost 14 cents or 1.97 per cent at $6.96.

PropNex, the real estate agency that has benefited from the red-hot property market, sank 20 cents or 11.2 per cent to $1.58.

Local banks, which have a lucrative market in home loans, found support from the US central bank shifting to end its asset-buying programme earlier and signalling three rate hikes for next year.

Shares of DBS edged up six cents or 0.19 per cent to $31.96, while UOB edged up four cents or 0.15 per cent to $26.72. OCBC inched down one cent or 0.09 per cent to $11.28.

The Straits Times Index meanwhile was up 0.14 per cent as of 9.25am.