(Bloomberg) -- Singapore may be considering another round of measures to cool residential prices, according to market analysts, who see recent ministerial remarks as a signal for the possible move.
Comments made by the city-state’s deputy prime minister indicate the government is keeping a close watch on property prices, Krishna Guha, an analyst at Jefferies Financial Group Inc., wrote in a note. Possible steps could include a tweak in additional buyer stamp duties, tightening of mortgage terms and an adjustment in average minimum home sizes for new developments, according to DBS Group Holdings Ltd.
Authorities will remain “vigilant” due to an uncertain economic outlook and “do not want to see the property market run ahead of the underlying economic fundamentals,” Deputy PM Heng Swee Keat said at an event with real estate developers on Monday.
Home prices in Singapore rose to the highest in more than two years in the quarter ending December, bringing the full-year increase to more than 2% for 2020.
Property Stocks
City Developments Ltd., UOL Group Ltd. and APAC Realty Ltd. are stocks that will be potentially affected by any government measures, according to Yeo Kee Yan, an analyst with DBS. There will be a lower impact on Capitaland Ltd. given its low Singapore exposure, he wrote in a note titled “Look out for policy tweaks”.
While launches and volumes may slow if there’s another round of cooling measures, factors including low rates, ample deposits, and healthy capital market gains will prop up the market, Jefferies’ Guha wrote. Pandemic-related relief measures, expectations of a revival of the en bloc market as well as the sustained wage growth of residents over the past decade will also cushion the impact.
He maintains buy ratings on City Developments and Wing Tai Holdings Ltd. on “attractive valuation, diversified revenue sources.”
“Despite COVID-19, asset prices in the world have been going up. In our local property market, we are also starting to see renewed positive sentiments and some gathering of momentum in prices,” Heng said in his speech. “We must continue to enable young Singaporeans to own their homes and fulfill their aspirations. This is why we pay close attention to the property market, to ensure that it remains stable.”
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
