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LONDON-Shares in Singapore’s biggest property group, City Developments Ltd, fell for the third day in a row on fears the government may release more land and flood the market.

CityDev, the 12th biggest property group in Asia Pacific and owner of owner of 52% of Britain’s Millennium & Copthorne Hotels, fell 5.7% to S$4.90 ($2.70) on the day. The company, has already seen S$1 billion ($565 million) wiped off its value on the Singapore Stock Exchange this month.

Other property shares also fell, dragging down the sector index by 2.62% to 348.15 points at 0806 GMT. CapitaLand Ltd, the second-biggest real estate group in Singapore, fell 0.8% to S$1.19 ($0.66) while Allgreen Properties, a residential property developer focusing on the local market, was the top loser in the sector, slumping 7.3% to S$1.01 ($0.66).

Cheong Kwok Mun, an analyst at DBS Vickers Securities, said in a research note: “Indiscriminate selling of property stocks arising from fear of government dumping North-East MRT (mass rapid transit) land plots onto the market is unwarranted, in our opinion.”

He added: “While the immediate concerns for the residential sector are more perceived than real, it nevertheless coincided with nervous market sentiment.”

The other factor affecting CityDev shares was concern that earnings in Millennium & Copthorne Hotels could be badly hit by a war against Iraq.

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