PRs buy fewer landed homes

SALES of landed homes to permanent residents (PRs) plunged last year as tough new rules deterred them from entering that segment of the property market.

PRs bought 109 landed homes last year - down 53.6 per cent from the 235 transactions inked in 2010, DTZ Research said.

That took their share of the landed housing market transactions to 3.4 per cent, from 5.4 per cent the previous year. In 2006, their transactions formed 6.8 per cent of the private landed market.

It has already been hard for PRs to buy landed property. There are strict criteria under the Residential Property Act that do not apply when they buy condominiums.

They must apply to the Singapore Land Authority's Land Dealings (Approval) Unit, which considers factors such as the person's professional qualifications, work experience and investment in Singapore.

Foreign citizens who are not PRs can buy landed property only at Sentosa Cove. They can also buy townhouses within condo developments.

The Government further tightened rules for PRs last year. Law Minister K. Shanmugam said then that he expected the number of approved applications to plunge by more than half.

He did not elaborate on the specific changes to the criteria, but said the Government believes landed homes should be mainly for Singaporeans, and that exceptions should be rare.

Experts say the PR share of the landed home market is being hit by two forces - tighter immigration policy and tougher criteria for obtaining approval.

DTZ Asia Pacific research head Chua Chor Hoon noted that while the tougher criteria had whittled down the number of PR buyers, the number of PRs here had also declined by about 9,000 - or 1.7 per cent year-on-year - as at last June.

This came on the back of more stringent eligibility requirements for PR approvals and lengthened residency requirements, she said.

Property agents told The Straits Times that getting approval has become noticeably tougher. They said approval is usually given to businessmen and professionals such as lawyers, bankers and doctors.

Mr William Wong, managing director of RealStar Premier Group, said there has also been a drastic drop of more than 50 per cent of PR viewings of landed homes, possibly because they are aware of the tighter regulations.

'While PRs used to get approval for landed property of 13,000 sq ft to 15,000 sq ft in the past, they are being advised to buy smaller homes of about 10,000 sq ft now,' he said.

In general, PRs face restrictions buying landed property larger than 15,000 sq ft, but exceptions have been made.

Newsman Realty managing director K.H. Tan said that while some PRs used to be able to buy good class bungalows - the highest-end homes with a typical minimum plot size of more than 1,400 sq m - they are no longer getting approval for these. 'But a lot of the PRs in the past have also become citizens, and they are able to buy landed homes that way,' he noted.

DTZ Research noted that the proportion of private home purchases by non-PR foreigners surged to a record 17 per cent last year, up from 12 per cent in 2010. They snapped up 5,246 homes, 20.4 per cent more than the 4,357 units in 2010.

Together with PR buyers, they comprised 31 per cent of the property market. Singaporean buyers had a 67 per cent market share, with companies making up the rest.

Cheap, Cheap 1 room unit @ Amaninda For RENT!!!

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#02, 560sqft and come with fully furnish.

Asking $3.5k

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2 bus stop away to Novena Square and many eateries around the area.


To view please SMS me at +65 82112033. Thanks.

S'pore developers set for new launches

More residential property launches are set to take off in the coming months. Far East Organization will soon unveil the 416-unit Hillsta condo in Choa Chu Kang as well as the 62-unit Greenwood Mews cluster housing development at Bukit Timah.

Frasers Centrepoint will roll out its Palm Isles condo at Flora Drive in Upper Changi, while the launch of Seletar Park Residence (pictured) by Tuan Sing is also in the pipeline.

The 99-year leasehold Seletar Park Residence condo is expected to be previewed by mid-March. Designed by SCDA Architects, the five-storey project will comprise 276 residential units located in the Seletar Hills private estate. 

Its developer specialises in boutique developments that feature high-end finishings, including The Botanica at Holland Road, a five-storey project also designed by SCDA.

Meanwhile, Far East saw a total of 66 units sold last week at its three top-selling projects, namely Watertown (17 units), The Hillier (14 units) and euHabitat (four units).

CEA clamps down on errant housing agents

Nine individuals have been barred from registering as housing agents after they were convicted of illegal moneylending activities.

Releasing this figure for the first time to Channel NewsAsia, the Council for Estate Agencies (CEA) stressed that housing agents are also not allowed to work with moneylenders – legally or otherwise.

It used to be a common industry practice for moneylenders to work closely with housing agents.

A person in debt will be offered a quick loan and then persuaded to sell his house to pay back the money owed.

In some cases, the moneylender and the housing agent executing the deal was the same person.

PropNex CEO Mohd Ismail said: “The motive of many of these moneylenders then was not the primary real estate business, but more of to get as many clients to take their loan because it is relatively lucrative. And in a way, they were quite secured, because for all the moneylending businesses they carried out, they used the HDB property in a way as a form of collateral.”

When the estate agency watchdog was set up in October 2010, all housing agents were required to register with the council before they could continue practising.

A background check revealed that nine property agents were previously convicted of illegal moneylending activities which immediately disqualified them as fit and proper agents.

Under new rules, an agent cannot hold a moneylender licence, or work for one, to prevent a conflict of interest.

Yeap Soon Teck, Deputy Director of Licensing at CEA, said: “A salesperson who works for sellers must act in the best interest of the seller. That is why he should not work with another party or collaborate with another party. Because by doing that, he may not get the best price for the seller, or may lengthen the resale process to get more interest for the moneylender.”

The industry watchdog said it will not hesitate to take errant agents to task.

Mr Yeap said: “Salespersons working with moneylenders is a very serious issue, and cannot be tolerated. We will spare no effect in investigating such cases, and we will not hesitate to prosecute such salespersons who are involved in such cases in court.”

Since the Estate Agents Act was introduced in 2010, the law is now harsher on housing agents who get involved with moneylenders.

Introducing or recommending a client to a moneylender can be considered an offence. If found guilty, a housing agent can be fined up to S$25,000 or jailed up to a year.

Agents found to have acted against the interest of the sellers may also be fined up to S$75,000, or have his registration suspended or revoked.

Why buy De Centurion??

De Centurion is a freehold apartment development located at 6A Tanjong Rhu Road, Singapore 436884, in District 15, minutes away from Mountbatten MRT Station. Completed in 2010, it comprises of 42 units. De Centurion is close to the Singapore Indoor Stadium and Kallang Leisure Park. 

The unit i am going to intro to you all is a 1 plus 1 freehold unit located at the highest floor next to the penthouse. It has a double-volume ceiling and is very high with good sea and city view. This apartment is still pretty new which is about more than a year old and currently is tenanted till 2013 at $3400 a month. The tenant is a young British couple. It comes with full facility liked swimming pool, jacuzzi, gym n BBQ pit. Proximity to East Coast Park, Changi airport, city and MRT stations.

Why Its Worth Buying?

1. 1 of the cheapest De Centurion 1 bedroom unit in the market

2. Located in District 15, prime location in Singapore

3. Limited supply of 1 bedroom unit in the area

4. Minutes walk to East Coast Park

5. Windy, quiet, beautiful city view. It is not only comfortable to stay, but an honor to be among the prime district 15

6. 10 minutes drive to IR, City and CBD area

7. Minutes to Mountbatten MRT station

8. Good rental return up to 4% (If closed at $1.05mil)

9. Under the Master Plan proposals, Geylang (including Geylang East) and Marine Parade will emerge as centres of commerce and cultures, providing a full range of employment opportunities and business premises from subregional centres, business parks to industrial estates

10. Very well designed Mixed Development that combines the new architecture with the old charm - providing you with a very unique living environment and lifestyle

11. Like a sencond city next to the city

12. Being so close to the city yet it’s prices is still same as property in more obscure areas means that there is still huge potential for capital appreciation

13. Residents can head down to the aforementioned Kallang Leisure Park or Old Airport Road, where there are amenities such as supermarkets, hawker centre, wet market, eating establishments, cinema, and ice skating ring. All just around the corner.

14. High connectivity via MRT, buses, expressway to many parts of Singapore. Makes it convenience for those that do not drive.

Anything above $1.05mil above we closed deal..

Please SMS me in advance @ 82112033 if you are coming to view this unit.

-- 
Best Regards
AnthonyYeo
Mobile: 82112300
CEA Registration No. R005434A
www.anthonyyeo82.blogspot.com <http://anthonyyeo82.blogspot.com/>
www.twitter.com/anthonyyeo82 <https://twitter.com/anthonyyeo82>

More foreigners snap up private homes

The number of private homes acquired by foreigners climbed 20 percent in 2011 despite a significant decline in the total number of private homes sold last year, according to DTZ Research.


The report said foreigners acquired a total of 5,246 homes for the whole of 2011, beating the earlier record of 4,982 units seen in 2007.

Chinese buyers overtook Malaysians for the first time, making up 28 percent of the total number of foreign property buyers last year, rising from 20 percent in 2010. Indians and Indonesians also dominated the market, and the four nationalities accounted for 77 percent of total transactions among non-Singaporeans, up from 73 percent in 2010.


Meanwhile, the number of private residential units acquired by Singaporeans and permanent residents (PRs) last year dropped by 24 percent and 16 percent respectively.


Chua Chor Hoon, Head of Asia Pacific Research at DTZ, said “with the implementation of the additional buyer’s stamp duty measures, the share of local buyers is expected to rise in 2012 as foreigners now have to pay a much higher stamp duty on any residential purchase.”


Prices of private homes rose every quarter last year despite the government raising the down payment for second mortgages and extending the period of homeownership to avoid sales taxes and stamp duties.


“The better performance in the primary market is due to the availability of smaller units costing less than S$1 million and buyers can buy and hold during the construction period to avoid paying the seller’s stamp duty in the first four years of purchase which was imposed in January 2011,” noted Chua.

Why HDB resale flat prices will not fall any time soon

When property agency bosses at a seminar early this month predicted a 3 to 5 per cent fall in the prices of Housing and Development Board (HDB) resale flats for this year, possibly declining up to 10 per cent should economic conditions worsen, it prompted a few prospective buyers to ask me whether this was news too good to be true.

The forecast was reinforced by data released a week later by three major agencies specialising in HDB resale flats. It showed that the overall median cash-over-valuation (COV) amount for all flat types based on last month’s deals has dropped in the range of S$4,700 to S$8,000 or by some 20 to 30 per cent in most flat types.

COV is the sum that the buyer of a HDB resale flat pays above the flat’s valuation.

It would be foolhardy to call a price correction based only on the shrinking trend of COV amounts as it has been shown to widen and narrow several times at various points of the present up-cycle. It may very well widen within the next few months as the COV amounts are not only influenced by demand and supply factors but only by the pace at which the market moves and by other non-market factors.

Although no concrete numbers were provided, key factors cited for the downward pressure on prices were dampened demand from the falling numbers of foreigners entering Singapore – which typically contributes to strong demand for rental and resale flats – and the record supply of new flats.

A supply crunch

My contention has always been that the present high resale flat prices have been supported not so much as by demand but by a supply crunch.

The problem of heightened investment demand has already been taken care off by cooling measures introduced on Aug 30, 2010. Under the new rules, those buying a HDB resale flat must dispose of their private property – including any held overseas – within six months of the purchase. This was to ensure that HDB flats go to owner occupiers first and are not viewed as an investment. Then, an average one in 10 resale flat-buyers own private property.

The record number of new BTO flats launched and the promise of even more has also lessened demand from first-timers considerably.

While resale volumes have fallen by a quarter since then, prices have remained stubbornly resilient.

Typically, the biggest supply of new resale flats which matters comes from households who have lived in their new flats for between five (the minimum occupation period is five years) and 10 years. These are the upgraders to the private housing market. Ten years is a good gauge for households to know whether they can afford and have the means to upgrade to a private home. If by the 10th year they have not upgraded, they are probably less likely to do so.

Then there are those who upgrade within the HDB housing market. Their numbers are less important as they do not add to the net supply, contributing to both supply and demand.

If you go through the HDB statistics over the years, you will find that the number of flats built over the five-year period between 2003 and 2007 is about three quarters less than the number built over the previous five-year period between 1998 and 2002.

This means, that on average, there is 75 per cent less new resale supply this year and for the year going back up to 2008. No matter how much you try to discount these numbers, the decline is substantial and very significant.

Going forward, the numbers built in the next five years from 2008 onwards is not much better until possibly 2017. This is because new supply was ramped only in 2010. This takes into account the two-year construction period and the minimum five-year occupation period.

What about demand?

You can only siphon off so much demand towards new flats. There will always be a core demand comprising PRs, downgraders from the private housing market and first timers who need their flats urgently as well as those who are – for reasons of their own – fixed in their choice of flat location. In fact, this core demand can only grow should there be more successful collective sale of private housing developments.

Recent feedback also show more and more upgraders are keeping their HDB flats – which reduces resale flat supply further – even as they re-locate to their private homes. They feel that if they can afford to keep them, they will do so as it is difficult to re-enter the HDB resale market once sold.

In the meantime, they are intending to use the rental income from leasing their resale flats to pay off part of the monthly mortgage of their private property. Most think this is a win-win situation for them.

My conclusion: In the absence of a severe recession, it is hard to see resale flat prices correcting this year.

CCT paying $430m for office block in Tanjong Pagar

CAPITACOMMERCIAL Trust (CCT) has agreed to buy a recently completed office tower for $430 million, which works out to $2,121 psf of net lettable area.


Located in the Tanjong Pagar area, Twenty Anson is a 202,696 sq ft grade A office building completed in 2009.


The 20-storey building is fully occupied and houses tenants such as Blackrock and Toyota.


It was jointly developed by LaSalle Asia Opportunity Fund III and its partner Lum Chang, and has been awarded the Green Mark Platinum certification, one of the highest green building qualifications.


The average rent at the property stands at $6.18 psf per month, lower than the current market rate of $8.44 psf per month. CapitaLand said the building has significant rent upside potential when the leases are renewed.
Mr Richard E. Hale, chairman of CCT's manager CapitaCommercial Trust Management (CCTM), said the property would be a strategic fit to the Trust's current portfolio of nine quality properties and is expected to generate incremental distribution per unit of 0.36 cent on a pro forma basis.


He added that when completed, the acquisition will increase the Trust's total asset size from $6.7 billion to $6.9 billion.


CCTM also said it will ensure a stabilised yield of 4 per cent per annum by setting aside $17.1 million that will be drawn upon over the first 31/2 years.


Twenty Anson is a five-minute walk to Capital Tower, one of CCT's assets, allowing for the sharing of resources and economies of scale, which will lead to improved operating efficiency, said Ms Lynette Leong, chief executive of CCTM.


The LaSalle fund bought several properties in Asia last year, including the 440 million yuan (S$88 million) acquisition of a 49 per cent interest in a plot of land in Chengdu, China, in September.


Its most recent deal in Singapore was the high-profile sale of Crowne Plaza Changi Airport to Overseas Union Enterprise in June last year.

Almost 500 new homes snapped up over past week

Nearly 500 new residences were sold over the past week, as developers stepped up their marketing efforts, fuelled by good transaction figures last month.


In January, 1,872 new private residences were snapped up, the highest since November 2010, and property developers want to keep the ball rolling.


Developers are speeding up the launch of more homes to ride on positive buying sentiment and to secure sales in case additional cooling measures are implemented, according to Colin Tan, Research Head at Chesterton Suntec International.


“The sales figures show you the number of investors that are in the market...low borrowing costs have left them with few alternatives, liquidity doesn’t know where else to go,” he said.


The leader in property sales for the week was Macly Group’s Guillemard Edge (pictured) near Dakota MRT station, which posted over 230 sales. Residences in the 275-unit development were priced between S$1,150 psf and S$1,250 psf. Over half of the units were 409 sq ft one-bedders with an indicative price of around S$500,000.


The 689-unit Parc Rosewood in Woodlands, which was jointly developed by Fragrance Group and World Class Land, sold 120 units last week at an average price of S$1,000 psf. The price was higher than the S$925 psf to S$998 psf price range in January.


Meanwhile, City Developments sold over 40 units at The Palette, Hedges Park, H2O Residences and NV Residences, as well as The Rainforest and Blossom Residences.


Similarly, Far East Organization sold 77 units across all its developments, including Skyline@Orchard Boulevard, The Scotts Tower and The Greenwich.

Singapore Property News

Residential

Effect of ABSD is only temporary, rental market benefits in the short term

Consultants say that the effect of the ABSD is temporary, as foreign buyers are still on the lookout for attractively-priced properties. However, since some of these buyers are expatriates who brought their families along when they came to work in Singapore, they need a temporary accommodation and this is where the rental market comes in. This includes private homes for rent, serviced residences and long stay accommodations, whose demand have increased after the ABSD though the increase in demand for such accommodations may be due to other factors. With the developers absorbing part of if not all of the ABSD and offering furniture vouchers to attract buyers and Singapore’s strong property market and reputation for safe investments, foreign buyers may continue to invest in the property market.

Number of HDB upgraders increase

The number of HDB flat owners purchasing non-HDB residential homes has increased to 13,910 in 2011, breaking the previous record of 13,769 in 2010. This figure is equivalent to 42% of the total sale transactions in the non-HDB market segment. ECs were the most popular, having seen 2,407 purchases from upgraders, an increase of 123% from 2010. The large supply launched in 2011, and the new projects developed to attract these buyers, the location of these projects are driving the demand for ECs. Furthermore, the increase in HDB resale prices also leaves the upgraders with more cash to purchase the ECs. This trend is likely to continue, albeit dependent on the attractiveness of the non-HDB property, in terms of design, concept and location.

Tampines Trilliant and Parc Rosewood see strong sales

670-unit Tampines Trilliant sold 149 units over the weekend including 32 two-storey penthouses, 24 of which were sold to first-time home buyers. The 48 penthouse units ranging from 1,841 to 2,465 sq ft, has four-bedrooms and a personal open terrace that can be accessed via the master bedroom. The prices for the penthouses start from $1.1 million. The project also includes 127 872 to 1,141 sq ft three-bedroom units, 397 1,001 to 1,378 sq ft three-bedroom-plus-utility units and 98 1,302 to 1,593 sq ft four-bedroom units. 42% of the 1,000 applications received were from first-timers and the rest were from second-time buyers, many of whom are HDB upgraders.

Meanwhile, 689-unit 99-year leasehold Parc Rosewood has sold more than 280 units with the addition of 110 more units it sold over the past week. The project which consists of one-bedroom, two- bedroom, three-bedroom, and penthouse units, are offering its units at prices decreased by 8-10% to woo buyers who might have been deterred by the ABSD.

Prices of residential properties set to fall

Historical data compiled by Credo Real Estate showed that in the past years (2008, 2000, and 1983) where there had been consecutive quarter-on-quarter near-zero adjustments of prices, there will be a fall in prices of residential properties. Given the most recent quarter-on quarter increase of only 0.2%, the fall in prices is very likely. There is also a tendency for the price fall to go hand-in-hand with economic downturns and falls in GDP. If there is a recession, or the situation is likely to lead to recession, the residential property prices will definitely fall. While some predict a weakening market, citing the economic outlook, increased supply and the ABSD, others foresee a slight slowdown in the market if the economic situation is not as bad as predicted, with the mass-market segment performing better and the prime residential segment less so with the ABSD.

The effects of ABSD on foreign buying

As the effects of the ABSD sets in, we may see fewer investments in property from Indonesians, a slowdown in the small format homes segment of the market, and mainland Chinese who buys these properties turning to investing in the office, retail or industrial properties instead. However, a large scale switch to other segments of the property market is unlikely since a slowdown in the residential market is likely to be felt in these other markets eventually. Furthermore, the foreign buyers may not choose to do so because of their lack of experience in these markets. Nevertheless, foreign-buyers with very deep-pockets who can invest long-term may continue to purchase properties, in particular mainland Chinese and Indonesian nationals who can afford over $5 million purchases.

Commercial

Potential sale price of Twenty Anson is over $400m

20-storey Twenty Anson, a Grade A office tower located near Tanjong Pagar MRT Station, may be sold to CapitaCommercial Trust (CCT) for more than $400 million. The Platinum LEED certified tower, which sits on a site with a remaining lease of about 95 years, has a total net lettable area of about 202,700 sq ft and floor plates of about 13,000 sq ft. Ongoing discussion about the price is around $2,200 psf of net lettable area with income support and $2,120 psf without, with the net yield at 4% with income support and 3% without. It will also offer income potential from lease renewals, with many leases up for renewals in 2013/2014. The current average monthly rental is $6.50 psf per month, below the $8 psf per month market rate for a Grade A building in this location.

StanChart sells space at Peace Centre

Standard Chartered Bank has sold its 5,600 sq ft two level corner space at Peace Centre, a building located near Selegie and Sophia Roads for around $11 million or $1,970 psf. Seven-storey Peace Centre sits on a site with 57 years of remaining lease with the Peace Mansion apartments behind it.

Tat Hong sells One Howard to Malaysian Dairy Industries

Freehold five-storey One Howard, an industrial building located near MacPherson and Howard Roads has been sold to Malaysian Dairy Industries for $30.3 million or $402 psf ppr. Malaysian Dairy Industries owns the adjacent properties, and may eventually amalgamate the lands it now owns to redevelop the site in the long term, especially since the new site does not require any development charge for redevelopment. Furthermore the sites, zoned Business 1, are located near the Tai Seng MRT Station and have a 2.5 plot ratio. The 30,157 sq ft One Howard site in itself can be potentially redeveloped further, since its estimated GFA of around 54,000 sq ft is a far cry from its 75,393 sq ft potential. However, Malaysian Dairy is likely to renovate the building when existing tenancies in the building expire and move into the building itself in the short term.

Singapore the world's 9th most expensive city

Singapore has been ranked the ninth most expensive city in the world, surpassing New York, London, Frankfurt and Hong Kong which are normally associated with high-end living, according to latest Economist Intelligence Unit survey.

While Singapore has dropped three notches from last year’s ranking, the new survey shows that the country is still an expensive city. It has joined the elite list of the top 10 most expensive Asian cities, together with Tokyo, Osaka and Kobe.

Meanwhile, Zurich emerged as the world's most expensive city for the first time, beating Tokyo, which fell to second spot.

Several surveys released recently point to Singapore’s rising cost of living, particularly among expats. In December 2011, the country was ranked Asia’s sixth most expensive city, beating Hong Kong for the first time.

“This is the price to pay to become an international financial centre – high prices and a wide income gap within a single city,” said Kit Wei Zheng, an economist from Citigroup. “Wages, land, property and rentals are under cost pressures due to excess demand, symptoms of a fast-growing economy.”

How Will Singapore Property Fare in the Year of the Dragon?

This is my first article for 2012.  Before getting down to business, I would like to take this opportunity to wish everyone a successful and prosperous 2012!  To start off the year, I have decided to write something on a lighter note for your reading entertainment.

Some time back, I came across an article in the Singapore Business Times titled Finance, fengshui square off over this Dragon Year.  This article wrote that experts in the finance industry and geomancy circle were having different outlooks for the Singapore stock market in the year of the Dragon.  The former saw a slight recovery while the latter held an opposing view.

After reading the article, I thought that it would be interesting to see how the Singapore property markets had performed in previous Dragon Years and to use the past trends to “predict” what 2012 was going to be like.

Intuitively, it seemed plausible that the Chinese zodiac had some impact on the property markets.  After all, the Dragon is a creature that is both feared and revered by the Chinese.  Just as many Chinese parents want to have Dragon babies, I wanted to find out if there was a Dragon Year effect for the property markets as well?

Residential property market performance in the Dragon Year

Using the URA Private Property Price Index (PPPI) data from 1975 to 2011, a gain (or a loss) for the respective year was worked out by subtracting the index value of Quarter 1 from Quarter 4. If the difference was positive, that year would be deemed a “growth” year.  Conversely, if the difference was negative, that year would be deemed a “contraction” year.

Based on this approach, the numbers of growth and contraction years, according to the Chinese zodiac animals, were worked out (see Figure 1).

Figure 1: Number of profitable and unprofitable years according to Chinese Zodiac for private residential properties (according to alphabetical order)

Source: URA and Ascendant Assets Pte Ltd

From the table above, 2 out of the 3 years Dragon Years were “contraction” years.  From this analysis, some may infer that the residential property market is unlikely to perform well this year.

In comparison, the Dog, Monkey, Pig, Rabbit and Rooster seemed to be all favourable years for the private residential market.  Hence, some investors might see some price appreciation if they were to enter the market then.

Industrial property market performance in the Dragon Year

What about the industrial property market?  From Figure 2, we might say that Dragon Years bring good fortune to the industrial property sector.  Apart from that, Monkey and Rooster Years also seemed to be auspicious times for industrial property owners.

On the other hand, the Ox and Rabbit Years seemed unfavourable for industrial properties and the industrial index dropped when those zodiac animals came around.

Figure 2: Number of profitable and unprofitable years according to Chinese Zodiac for industrial properties (according to alphabetical order)

Source: URA and Ascendant Assets Pte Ltd

Retail property market performance in previous Dragon Year

From Figure 3, 2 out of 3 years Dragon Years were found to be profitable.  Hence, it might be inferred that the retail sector would be generally favourable in the year ahead.  In comparison, the Rooster was the only zodiac animal that had 3 rounds of price increases and some might think that investors who bought retail units in such a year would likely do well.

Figure 3: Number of profitable and unprofitable years according to Chinese Zodiac for retail properties (according to alphabetical order)

Source: URA and Ascendant Assets Pte Ltd

To conclude, I must qualify that past performances are not indicative of future results.  At present, there appears to be some congruence between how people expect the property market to perform and the past Dragon Years trend.  To me, the distribution appears to be totally random and the congruence is simply by chance.  To a soothsayer, this may actually be the work of divine forces.  Ultimately, only time will tell whether the property market will pan out as “predicted”.