Property developers are expected to see little to no impact by the latest Budget 2022 measures, according to DBS Group Research and RHB Group Research. The Budget 2022 that was announced on Feb 18 included an increase in property taxes for investment property, as the government moves to tap the wealthy for a bigger proportion of its tax revenues.
DBS’ and RHB’s views differ from CGS-CIMB Research’s, which reckons a “downward knee-jerk reaction” to the share prices of developers and property agencies. “We expect some erosion in the rental yield on investment property, particularly for high-end segment. In our view, this could negatively impact demand and selling prices for larger properties in the high end in the near-term,” says CGS-CIMB’s head of research Lim Siew Khee.
