Property shares in the island took a hit after the Monetary Authority’s announcement of various cooling measures that were introduced immediately.
The measures include raising the medium-term rate floor by 0.5 percent point to 4 percent. The so-called stress-test rate is used by banks to compute a borrower’s loan eligibility amount to fulfill the total debt servicing limit of 55%.
Shares of City Development Limited fell by 2.5% and as of mid-day Wing Tai Holdings slipped 3.3% while Frasers Property fell by 2%.
As for the banking stocks, they were mixed with OCBC and DBS edged higher while OUB dropped by 0.12%.
