Big developers' share prices take a beating

Private home prices had started to recover in the second quarter of 2017 but that honeymoon lasted only five quarters thanks to the bucket of cold water thrown over the sector in July.
Private home prices had started to recover in the second quarter of 2017 but that honeymoon lasted only five quarters thanks to the bucket of cold water thrown over the sector in July.PHOTO: ST FILE

The cooling measures that hit the market last July have hammered share prices of the country's big developers to the point where some are at "close-to-crisis valuations".

The change in fortunes since the July 6 measures has been stark with property shares under the FTSE ST Real Estate Holding & Development Index down between 20 and 25 per cent with little prospect of improvement given a projected slowdown in sale volumes and continued declines in home prices.

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A version of this article appeared in the print edition of The Straits Times on January 07, 2019, with the headline 'Big developers' share prices take a beating'. Subscribe