HK government measures weaken shares of Singapore property firms

Shares of several real estate companies in Singapore slumped yesterday on the back of growing concerns that authorities in the country would also be imposing measures similar to the Hong Kong government’s move to cool down its property prices.

The Hong Kong government recently implemented a series of measures to cool down property prices, including the tightening of mortgage lending for bigger units, which fuelled asset bubbles.

City Developments fell as much as 3.3 percent with a volume of 928,000 shares, while Southeast Asia's largest property developer, CapitaLand, slipped as much as 1.5 percent.

Trading hit S$3.93 by 0324 GMT and over 3.9 million shares had changed hands.

“The HK government's measures have dampened the sentiment about the property sector. Investors are a bit wary in case the Singapore government also comes up with certain measures,” said a local trader.

Singapore’s property index dropped 0.62 percent, while the Straits Times Index slid 0.44 percent.