SINGAPORE: Shares of Singapore property developers took a hit on Friday morning, Sep 30 after cooling measures were announced late on Thursday.
The measures include raising the medium-term interest rate floor by 0.5 per cent to 4 per cent. The so-called stress test rate is used by banks to compute a borrower's loan eligibility amount to meet the total debt servicing ratio TDSR limit of 55 per cent.
TDSR is a portion of a borrower's gross monthly income that goes towards repaying their monthly debt obligations.
The new medium-term interest rate floor means authorities are tightening the criteria to assess a borrower's ability to repay the loan.
The shares of CDL of City Developments Limited fell by 2.5 per cent on Friday morning.
As of the midday trading break, Wing Tai Holdings fell 3.3 per cent, Frasers Property fell 2 per cent, OUE lost 3 per cent, and Guocoland dropped 1.8 per cent.
Local banks, which have been revising their home loan packages due to rising interest rates, were mixed. DBS and OCBC had moved higher by 0.24 per cent and 0.09 per cent by noon. UOB fell by 0.12 per cent.