Here are China's 8 property curbs that could hurt Singapore developers

The 20% capital gains tax was surprising.

According to CIMB, Singapore developer stocks that have meaningful exposure in China could see selling pressure in the wake of this event. But the firm notes that most large-caps have diversified exposure across different asset classes in the China property sector.

The residential segment makes up less of the Singapore developers’ GAV when compared to their China counterparts The State Council of China announced over the weekend further details on new property policies that the market can expect.

Here's more from CIMB:

Most of these are similar to the State Council’s policy alerts on 20 Feb. What was new was the emphasis on the implementation of a 20% capital gains tax on transfer of properties.

In an online notice to homebuyers, the Chinese government issued the following policy guidelines:

1) A strict implementation of a capital gains tax of up to 20% to be levied on sellers on the profit made in the secondary market.

2) Stricter implementation of home purchase restrictions (HPR). Those cities which have introduced HPRs should standardise the restrictions in terms of district, housing structure and home purchase permits, etc.

3) Cities currently without HPRs that are seeing rising property prices are advised to introduce HPRs.

4) Stricter controls on home purchases by 1) non-local households with one home or more, and 2) non-local households without the qualifying amount of years of tax payment or social security certificates.

5) Banks to enforce differentiated mortgage policies across individual cities. Banks are able to raise down-payment requirements and interest rates for second-home mortgages.

6) 2013 total land supply should not be less than the average over the past five years.

7) Social housing targets for 2013: completion of 4.7m units and construction starts of 6.3m units.

8) Local governments should be accountable for reining in home prices with annual primary ASP control targets to be announced.