Source : The Straits Times, March 11, 2009

By K. C. Vijayan, Law Correspondent

THE difference between breaking even and making a profit was at the heart of a High Court decision to overrule the Strata Titles Board (STB) and let the Regent Court en bloc sale application proceed.

Justice Judith Prakash handed down her decision last October and released the grounds for it last week.

The legal row began when the STB rejected the estate's collective sale application in December 2007 after two objectors said they would suffer losses in the deal.

The objectors said their share of the sale proceeds would amount to $932,000; they had bought their flat for $993,000.

But Senior Counsel Hri Kumar and lawyers Gary Low and Benedict Teo from Drew & Napier argued in last October's appeal that the buyer, Regent Development, had undertaken to settle the gross difference of $93,935.75 once the sale went through.

The STB did not consider this payment and took account of only the objectors' purchase price and the en bloc sale price.

This meant the objectors would end up out of pocket, enough to abort the application, the STB ruled.

The lawyers argued that the board's approach would be 'highly prejudicial to the public interest in that it would unreasonably hinder en bloc sales'.

They said that as property prices fluctuated, it was possible to have at least one owner who bought a flat at a price below the en bloc price.

This would mean that even if 99 per cent of owners voted for the sale, it could not go through, they added.

Justice Prakash agreed and added that the Land Titles (Strata) Act empowered the STB to ensure the buyer agreed to make good any loss suffered by the objecting owner.

The STB still has to consider all the relevant evidence, including the concerns of eight other objectors besides the two referred to in the judgment, before making a decision on the en bloc application. Its hearing on the $34 million collective sale for the 49 units at the Serangoon Road site is expected later this month.

Source : The Straits Times, March 11, 2009

London, European cities relatively cheaper as pound and euro plunge

DRAMATIC shifts in currency values have propelled Singapore towards the top of a survey of the world's most expensive cities.

Singapore is now ranked 10th most expensive city in the world, but economists here note that this reflects sharp exchange rate movements rather than changes in living costs. -- ST PHOTO: SAMUEL HE

The Republic leapt five places to 10th costliest city in the world in just six months, as European cities like Brussels and Dublin have become relatively cheaper places following the euro's plunge in value, according to the Economist Intelligence Unit (EIU) survey of 140 cities.

London fell from 8th to an incredible 27th on the list - reflecting the near 30 per cent depreciation of the British pound against the dollar over a half-year period.

Report editor Jon Copestak said: 'Two factors drive the relative cost of living - local prices and exchange rates.

'Normally our ranking of cities by cost of living is relatively stable, but in the current global climate, changes in exchange rates have significantly altered our assessment of the most and least expensive cities.'

The survey, which updates EIU's findings last September with the exchange rates that applied last month, now ranks Tokyo and Osaka as the most expensive cities in the world.

The euro and pound weakened dramatically during the interim as the financial crisis gained momentum, with markets witnessing a flight to perceived safe haven currencies such as the yen and the US dollar.

A stronger US dollar helped push Hong Kong - whose currency is pegged to the dollar - 17 places higher up to 11th, just behind Singapore.

The cost of living in Chinese cities like Shanghai, where the yuan is pegged to the dollar, rose steeply relative to cities in other countries.

The EIU's index, which measures the prices of 160 products and services such as food, clothing and utilities, but does not include commercial or residential rent, is designed to help companies calculate the pay packages they give to their expatriate employees.

Economists here caution that the survey's findings should be viewed in context, and were more a reflection of sharp exchange rate movements than actual changes in living costs.

'The euro has weakened because of the stress that European countries have come under due to the slowdown - but this is not going to persist,' said OCBC economist Emmanuel Ng.

'Over the next three to six months, we should see a fair chance of the major currencies being vulnerable to the dollar. But, once the mess clears and we actually see the bottom, the risk appetite will come back. There will be an interest to shift funds into other currencies to the US dollar's disadvantage.'

Mr Ng predicted that Singapore will fall back down the rankings as the euro strengthens and consumer prices continue to drop in Singapore relative to other countries.

Inflation here has plunged as oil and food prices have become cheaper. The Consumer Price Index slowed to just a 2.9 per cent gain in January over the same month a year ago. It jumped 4.3 per cent in December.

Costs of living are of increasing concern to businesses, which are keen to prune costs in the light of the economic downturn.

Said the American Chamber of Commerce's executive director Laura Deal: 'With the current economic environment and the challenges ahead, companies are looking at their budgets with different perspectives, and are trying to cut costs wherever they can.

'This could include moving expats to countries where costs of living are lower.'

Source : The Straits Times, March 11, 2009

A COMPETITION to design Punggol's first waterfront homes has attracted a huge response from local and foreign architects.

An artist's impression of Punggol Waterway. Five shortlisted firms will design a 4.9ha site there. -- PHOTO: HDB

A technical seminar held yesterday for participating architectural firms drew a turnout of more than 200 people, all keen to have a say in how Singapore's first waterfront public housing estate will take shape.

Architects have to design a masterplan for a 26.6ha housing district west of Punggol's town centre by April17.

Five shortlisted firms will go on to design a more detailed 4.9ha site along the Punggol Waterway. This phase of the competition closes on Aug 21.

The top design will be announced and exhibited in November, with the winning team contracted to execute its masterplan. The Housing Board plans to offer the waterfront homes by mid-2010.

The winner will be awarded $300,000, which is part of the consultancy fee for the project. Two merit winners will also be chosen and awarded $100,000 each, said the HDB.

Its deputy chief executive of building, Mr Lau Joo Ming, yesterday urged the architects at the seminar to be 'bold...and dare to be different'.

He said the competition is open to anyone, from young upstarts to established local and foreign firms.

The HDB has devised a theme for the estate - Green Living By The Waters - and hopes architects will conjure up fresh ideas and concepts around it.

It also hopes that the winning design will succeed in building up the estate's population to the point where it can support wider recreational and commercial facilities, activating its recreational coastline and enhancing the town's transport routes and connectivity.

Among the local firms at the seminar were DP Architects, RSP Architects, Woha Architects and Surbana International Consultants.