Investing in Asia? Better Call a Geomancer

Fortunetellers Predict Rising Prices

Singapore home prices will rise this year at more than twice the 3.8 percent pace of 2005, according to the forecast of Chong Swan Lek.

His prediction comes not from studying the real estate market or economic data, but from a type of fortunetelling known as geomancy.

"It's the year of fire and earth, which means you'll make money out of property," said Chong, 65, a fourth-generation Chinese geomancer. "We can expect anything between a 7 and 10 percent rise in property prices."

As the Year of the Dog looms on the Chinese lunar calendar, geomancers tap their ancient study of energy flows, or feng shui, numerology and astrology to dispense tips for good fortune. Like analysts who map out stock patterns, Chong uses lines and charts to predict trends for the year starting Jan. 29.

Investor Louis Wong agrees that home prices will rise, though he doubts the precision of Chong's tools. A geomancer's key instrument, called a compass, is a round board with components that include nine flying stars, eight lunar mansions and the five elements of earth, fire, metal, water and wood.

"Property prices will rise by 5 percent because the economy is getting better," said Wong, who helps manage $20 million at Phillip Asset Management Ltd. in Hong Kong. "I rely on fundamentals."

Still, human behavior is affected by the chi, or energy, that surrounds us, Wong said. Sometimes, geomancers get it right.

"There have been predictions in the past about catastrophes, epidemics and natural disasters, which have come true because of the movement of the stars," he said. "But for trends such as property, I don't think it can be accurate."

Chong's forecast mirrors that of CapitaLand Ltd., Southeast Asia's largest property developer by sales. Home prices will rise by as much as 10 percent this year, Patricia Chia, chief executive of the Singapore company's local residential unit, forecast in October.

Tan Khoon Yong expects an even bigger increase. The 11th animal in the Chinese zodiac will usher in an "energetic" year for the property market, the Singapore geomancer said. He sees home prices rising 10 percent to 15 percent.

Tan, 51, also bases his forecast on his compass, taking into account the dog's characteristics. Trends from past years support his prediction, he said.

"Property prices usually drop drastically during the Year of the Tiger and recover slowly but steadily in the subsequent years," Tan said. "The last two years of the Tiger, 1986 and 1998, were very bad years."