CGS-CIMB believes the higher taxes will have a negative impact on counters such as UOL Group, City Developments, Propnex and APAC Realty.
The government’s moves to tap the wealthy for a bigger proportion of its tax revenues, might cause a “downward knee-jerk reaction” to the share prices of developers and property agencies, says CGS-CIMB.
“We are surprised by the increase in property tax, especially after the recent hike in Additional Buyers’ Stamp Duty rates and tightening Total Debt Service Ratio announced in Dec 21,” says the brokerage's head of research Lim Siew Khee in her Feb 19 report.
