Property stocks to remain the hot topic in town

TRADERS will have plenty to work on this week as the twin troubles of property cooling measures and trade tariffs continue to keep pressure on equity markets. The benchmark Straits Times Index looked a gloomy sight on Friday last week, ending the day nearly 65 points, or 2 per cent, down to 3,191.82 after beginning the week at 3,238.94, equating to a 1.5 per cent fall over the course of the week.

The Singapore property market will still be the "buzz in town", UOB analysts Alvin Liew and Ho Woei Chen wrote, after property stocks capped one of their worst weeks last Friday as news the night before of government property cooling measures and tightening of mortgage loans sent their counters into a tailspin.

The measures - which are the ninth round of property cooling initiatives since 2009 - will decelerate home sales this year as the higher ABSD (additional buyer's stamp duty) could curtail investment demand from both locals and foreigners, and the larger cash outlay required for down payment on homes weighs on buying interest, said property services company Colliers International in a research note.