Shares of real estate developers jumped yesterday after the announcement that property cooling measures would be eased slightly.
Punters were betting that the rule tweaks would draw more home buyers back into the investment property market.
Their optimism sent the benchmark FTSE ST Real Estate Index, which had been riding on good sentiment since the year began, up 1.35 per cent to close at a level not seen since July 2015.
Wing Tai shares shot up 14.5 cents or 8.1 per cent to $1.935, after being upgraded to a "buy" by CIMB on Thursday. Wing Tai has three remaining Singapore residential projects, including Le Nouvel Ardmore, which is 15 per cent sold.
Maybank Kim Eng said that for the developers it covers, Wing Tai and City Developments (CDL) have the biggest exposure to the local residential market.
CDL jumped 54 cents or 5.62 per cent to $10.15. It intends to launch its New Futura condo and the second phase of its Gramercy Park condo project this year.
UOL jumped 30 cents or 4.53 per cent to $6.92. It recently recorded healthy sales for its Clement Canopy condo project and plans to launch two more sites next year.
CapitaLand was the top-traded property counter, with the stock closing 13 cents higher or 3.64 per cent to $3.70, despite its relatively low exposure to the local market.
Frasers Centrepoint, which will roll out the 843-unit Seaside Residences in Siglap next month, climbed 5.5 cents or 3.28 per cent to $1.73 yesterday.
DBS Vickers analyst Derek Tan believes the rally in property stocks can be sustained. He said: "The market had not priced in a policy tweak, given recent messaging from the Government."