Singapore property shares tumble after cooling measures

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Shares of major property developers in Singapore were battered Monday after the government introduced new measures at the weekend to cool the real estate market.

By the closing bell, shares of top developers listed on the Singapore Exchange had sunk more than four per cent as investors spooked by the measures dumped the stocks.

CapitaLand closed 4.11 per cent lower at S$3.73, City Developments fell 7.54 per cent to S$11.65 and Keppel Land slumped 7.24 per cent to S$3.97.

"We're seeing a knee-jerk reaction to the cooling measures," said Jason Hughes, head of premium client management for IG Markets Singapore.

The new measures, which came into force Saturday, included sharply higher duties on property purchases by foreigners.

Singaporeans' minimum cash downpayments for second or subsequent homes were raised from 10 to 25 per cent of a property's value.

But Hughes predicted property stocks would be able to ride out the storm thanks to their overseas portfolios.

The measures were imposed after home prices continued to rise even as the city-state suffered an economic slowdown. It narrowly avoided a technical recession in the last quarter of 2012.