Singapore's new property curbs to have minimal impact on Malaysian-owned projects
In a research note, HLIB said the measure is aimed at curbing the highly speculative segment of buyers who typically 'flip' their purchases within three years, often before the homes are even completed.
It was reported that the Singaporean government announced a new property cooling measure yesterday, which applies to the seller's stamp duty (SSD) for residential properties.
The measure extends the holding period from three to four years and raises rates by four percentage points per tier, effective today.
HLIB expects the impact to be felt mainly in the new launch market, particularly for smaller units, which tend to attract speculative investors due to their lower quantum and perceived ease of resale.
'However, the revised SSD is relatively moderate as it simply extends the holding period by a year, from three to four years, while sales beyond the four-year mark remain exempt from the SSD.
'As such, we see the overall impact on developers as minimal, since genuine end-user demand and long-term investor interest should remain intact,' it said.
However, this move signals the Singaporean government's policy direction as it leans more towards tightening rather than relaxing the cooling measures in the property market, according to the investment bank.
HLIB also maintained its 'overweight' call on the sector, with its top picks including IOI Properties Group Bhd, with a target price (TP) of RM4.05, OSK Property Holdings Bhd (TP: RM2.00), Sunway (TP: RM5.90) and Sime Darby Property Bhd (RM2.05). — BERNAMA
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