Singapore announced on Monday restrictions on people buying second homes as part of new measures to cool its red-hot residential market, joining Hong Kong and China in taking steps to keep a lid on housing prices.
Property developers were in for a rude shock which sent their stock prices declined as much as 2-4%.
Southeast Asia's second-largest developer City Developments falling as much as 4.3 per cent and Wing Tai dropping as much as 4.6 per cent.
CapitaLand, Southeast Asia's largest developer, declined as much as 2 per cent
Another concern is that Singapore interest rates are near record lows despite economic growth that will likely hit 12-15 per cent this year, due to an increase in inflows from overseas.
The current low global interest rate environment will not continue indefinitely, and higher interest rates could have severe implications for buyers who have overextended themselves and on the economy.
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