Singapore Developer Bonds Slide as Rules Added to Cool Property Prices
Bonds of CapitaLand Ltd., Southeast Asia’s biggest developer, fell after Singapore added to measures designed to cool the city-state’s real estate market.
CapitaLand’s S$250 million ($185 million) in 4.35 percent notes due 2019 fell to 101.88 cents on the dollar from 102.48 cents on Aug. 27, the lowest in about two weeks, according to Standard Chartered Plc prices. The yield on the S$350 million of 4.3 percent, 10-year bonds it sold this month rose to 4.259 percent from 4.166.
City Developments Ltd.’s S$90 million in 2.92 percent notes due 2014 fell to 101.68 cents, the lowest since Aug. 10, according to DBS Group Holdings Ltd. City Developments is Singapore’s second-largest property company.
Singapore will levy a seller’s stamp duty on residential units and land sold within three years from the date of purchase, compared with one year now, the Ministry of National Development said today. Buyers who hold more than one mortgage will only be able to borrow up to 70 percent of the value of a new purchase, it added.
Private residential prices rose 38 percent in the second quarter from a year earlier, according to the Urban Redevelopment Authority.
To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net
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