Singapore-listed real estate stocks with major exposure to the Chinese market have fallen, as data from China raised concerns that a slowdown in its economy could lead to reduced demand for homes.
The lending in China dropped in May and money supply rose at the slowest rate since 2008, suggesting that its economy is cooling.
These have resulted in three Singapore-based property stocks hitting their bottom points.
Singapore’s CapitaLand has lost five cents or 1.7 percent to close at S$2.91 — dipping below the key S$3 support level for the second trading day in a row.
City Developments dropped 22 cents or 2.1 percent to end at S$10.44, while Keppel Land fell 16 cents or 4.2 percent to close at S$3.68.
Other property developer stocks fared even worse.
China-listed Yanlord Land Group dipped three cents or 2.3 percent to close at S$1.25. Its stock price is now at its lowest point since September 2006.
CapitaMalls Asia, a retail unit of CapitaLand, dropped five cents or 3.2 percent to close at an all-time low of S$1.50.
Several market analysts attributed the loss in property stocks primarily to rising concerns about China.
“Data that came in today (Monday) showed larger-than-expected declines in loans disbursed in China,” said CIMB analyst Donald Chua.
“Asset inflation and property prices are watched very closely by policymakers regionally.”
Aside from growing concerns about China, the investors are also plagued by worries over the US economy and the European sovereign debt crisis.
To contact the journalist, you may send your message to editor@propertyguru.com.sg