Properties Tumbled

Fourth round of cooling measures. In yet another surprise move last evening, the government announced another round of property cooling measures –the 4th in two years.

- With effect from 14 Jan 2011, the holding period for Seller’s Stamp Duty (SSD) would be increased from three to four years.
- The SSD rates would be raised to 16%, 12%, 8% and 4% for residential properties sold in the first, second, third and fourth year of purchase respectively.
- The Loan-To-Value (LTV) limit will be lowered to 50% for housing loans to purchasers who are not individuals and 60% to individuals with one or more housing loans.
Near term weakness in share prices for property and banking stocks as well as in the physical property market. Besides the knee-jerk reaction expected this morning for property and extending to banking stocks (as mortgages remain a key component of most banks’ loans books), we also expect the physical property market to see near term price weakness (as was already the case after August’s cooling measures)

My kepland stucked as the knee jerk reaction of the above piece of news. In overall, i don't think it will drop like hell. market will take this opportunity for profit taking. STI immediate support level still at 3220 level.