Shares of Singapore-listed property companies dropped on Friday after the government announced new cooling measures to curb home prices.
Shares of Wing Tai Holdings fell 5.1 percent, while City Developments Ltd retreated 4.6 percent. Keppel Land and CapitaLand both declined 2.9 percent each.
“We expect knee-jerk reactions for developers’ share prices this morning in reaction to this development,” said OCBC Investment Research.
OCBC said it expects to see near-term decrease in pre-sales volume, particularly in the mass segment. It added that, given the current economic condition, its top pick is UOL Group, due to the company’s best risk-reward scheme in its sector.
UOL had no land bank left in Singapore, said OCBC, but the group was in a good position to change its revised net asset value by purchasing land in a softer environment.