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The Republic is the best place for them to live worldwide; Baghdad ranks last.

The Republic ranks as the best place for Asian expatriates to live worldwide, according to the latest survey by human resources consultancy firm ECA International.

Singapore surpasses cosmopolitan cities such as Sydney, Melbourne and Copenhagen in Asian expatriates’ view, the survey showed. These cities are ranked second, third and fifth respectively in the top 15 locations for Asian expatriate living.

Meanwhile, Kobe (joint third with Melbourne), Yokohama (eighth), Tokyo and Hong Kong (both 15th) are the only other Asian destinations that made it to the top 15 list.

Conducted annually, the Location Ranking Survey compares living standards in 254 locations globally, taking into account climate, air quality, health services, housing and utilities, isolation, social network and leisure facilities, infrastructure, personal safety and political tensions.

‘High quality infrastructure and health facilities, combined with low health risks, air pollution, crime rates and a cosmopolitan population, make Singapore a very appealing location for Asians to live in,’ said Lee Quane, general manager of ECA International.

‘Although we did see a small deterioration in some factors, such as air quality and accommodation in 2007, it still retains its status as being the location with the best quality of living for assignees in this region.’

He explained that Singapore ‘was much more affected by haze in 2007′ compared with the preceding year, causing it to lose points in the air quality category. Meanwhile, ‘recent market developments in en bloc ( property sales) had an impact on the supply of standard accommodation’.

Nevertheless, Singapore has consistently been ranked the best location for Asian expats to live for a decade, said Mr Quane, who believes that it will retain that spot despite ‘Hong Kong moving up our rankings’ this year after sliding for several years, due to improved personal security scores and the movements of locations around it.

‘We now see the narrowing in quality of living between Singapore and Hong Kong, but it is unlikely that Hong Kong will match Singapore. The main reason is (Hong Kong’s) air pollution, which is unlikely to go away any time soon,’ he explained.

At the other extreme, Baghdad is the least favourable place for Asian expats to live in, followed by Kabul (Afghanistan), Karachi (Pakistan) and Port-au-Prince (Haiti), due to the locations’ risk to personal security and their lack of suitable facilities, according to the survey.

Source : Business Times - 5 Mar 2008

AS THE property investment chant goes, there are three factors that one needs to consider in a purchase: location, location, and location.

But for a hospital operator, does location count too?

In Parkway Holdings’ case, apparently it does.

Having been punished by the market recently for paying what is considered an exorbitant price for a piece of land in Novena, Parkway has been taking pains to explain the rationale for its bid.

A key reason was the group’s need for new capacity, given that its existing Mt Elizabeth, Gleneagles and East Shore hospitals are already facing expansion constraints. The group has had to move out some of its administrative functions from the hospital premises in recent years.

And the trend is not unique to Parkway. Also in close proximity to Novena, Thomson Medical Centre, too, has shifted its non-clinical functions across the road from its hospital building. And even in the public sector, administrative staff at Tan Tock Seng Hospital will soon have to operate from temporary offices in containers as a result of the space crunch.

Adding to the urgency is the long lead time required to build up a hospital from a green field before it becomes operational. That means development work has to start now to cope with the rising demand for hospitals in the coming years.

Considering that about 60 per cent of its patients today are foreigners, Parkway’s new venture is aimed at capturing this pool which is growing at double-digit pace a year. And as major projects like the integrated resorts take shape, more high net worth individuals and expatriates descending here could use the ‘hospital of the future’ and six-star services that Parkway plans to deliver.

Critics would argue that all these plans could still be delivered without such an aggressive bid. As Health Minister Khaw Boon Wan has announced previously, three other land parcels have been identified for the construction of private hospitals. One of them will be in Outram, another in Buona Vista, and the third in the northern part of the island. It is not known when the sites would be released.

Compared to the rest, the Novena location appears to be the most strategic one for Parkway. Being minutes away from the Orchard Road shopping belt, and easily accessible by MRT, it would be attractive to international patients looking to combine their healthcare needs with leisure.

It would also be easier for incoming overseas patients who come with their families to find temporary accommodation in close proximity to the Novena hospital. Apart from the Newton/Orchard Road area, foreign patients could also look towards upcoming commerce-hotel projects at nearby Sinaran Drive and Race Course Road.

Right next door, doctors taking up space at Far East Organisation’s Novena Medical Suites add another potential pool of users to Parkway’s Novena Hospital. It could provide that extra wing, like what Paragon Medical Centre is to Mt Elizabeth Hospital now.

Clearly, clinching the Novena site is paramount to its expansion. With a rising expatriate population and more than 400,000 foreign patients arriving in Singapore every year, getting a new hospital up and running in time is pivotal for it to maintain its lead in the private healthcare space.

Parkway itself has said its new venture will set a new benchmark in private healthcare here. It will have an emphasis on cardiovascular disease, oncology, and orthopedics, and healthcare delivery designed with a great deal of attention to individual patients.

At $1,600 psf per plot ratio, the bid works out to more than $1.2 billion just for the 99-year leasehold land. Add another $500 million to the development cost and the total bill comes closer to $2 billion.

When compared to the next highest bid of $694.50, the price is seen as excessive. But seen against the light of the location’s potential, Parkway may have the last laugh in the longer term.

Source : Business Times - 5 Mar 2008

Contrary to what some developers think, a majority of companies are willing to pay a premium for properties designed with ’sustainable’ principles in mind, a recent survey by real estate firms Jones Lang LaSalle and CoreNet Global shows.

The bottleneck is, rather, on the supply side, where the ability to address market demand is ‘presently sporadic at best and needs to be urgently addressed’, says the survey, which was published yesterday.

Entitled Global Trends in Sustainable Real Estate: An Occupier’s Perspective - Feb 2008, it was conducted on 400 corporate occupiers at conferences in Singapore, Denver, Melbourne and London last year.

Most occupiers recognise that energy-efficient and environmentally friendly property , such as buildings designed to US LEED or equivalent standards, could cost 10 per cent more to build.

However, 62 per cent of respondents globally, said they were prepared to pay a premium of up to 10 per cent, and 8 per cent indicated willingness to pay even more.

The willingness to pay varied across markets. American occupiers were most enthusiastic, with 77 per cent willing to pay more, followed by occupiers in Australasia and Europe.

In Asia, 48 per cent were willing to pay up to 10 per cent more, significantly less than elsewhere, but 16 per cent were willing to pay a premium of over 10 per cent, significantly higher than elsewhere. This was ‘possibly due to the market scarcity of solutions’, said JLL and CoreNet.

Globally, ‘despite willingness to pay the price, a lack of options and services in some areas has been a limiting factor’, the survey found.

Overall, 46 per cent of respondents felt there was minimal availability, while about 38 per cent felt it was good in some markets but not in others. The remainder felt there was good availability in all markets.

‘Various elements of the real estate industry are not yet doing a good job in thinking and acting ahead’, or at least that’s what the market perceives, the survey said.

Appraisers, brokers, contractors and landlords, in that order, were perceived as the least proactive, though architects and designers were regarded as generally proactive.

The survey also asked the corporates what factors might influence their future attitudes to sustainability.

The most common factor, cited by four-fifths of respondents, was significant increases in energy costs - showing that cost-saving through green design is very much on the mind, said JLL and CoreNet.

Other well-cited factors were increased regulation, influence from customers or employees, and better technology.

Specific environmental issues like water utilisation and carbon emissions were ‘ranked lower , and by a significant gap’, suggesting that not all the details of sustainability are yet in full focus, the survey said.

‘Corporate occupiers may not fully grasp how interdependent the components are in terms of their cumulative impact on the environment’, it said.

Source : Business Times - 5 Mar 2008

They declare a lower price, thus keeping the difference instead of returning funds to CPF.

A NEW scam involving HDB flats has surfaced, this time allowing flat sellers to pocket extra cash by craftily getting around the rules.

The so-called ‘magic dollars’ scam involves reporting a falsely low sale price to the HDB - an offence which is punishable by a jail term and/or a fine.

Agents say they are seeing these cases pop up on a more regular basis, but it is not rampant yet.

This is how it works.

The seller is typically a flat owner who bought his HDB flat at the peak of the last property boom, so he has made significant paper losses despite the recent run-up in prices.

If he sells the flat, the proceeds may be barely enough to cover the balance of his mortgage and any leftover will probably have to go back into his CPF account. So he ends up not getting his hands on any ready cash at all.

To pocket some cash or what is sometimes known as ‘magic dollars’, he strikes a deal with the buyer of his flat.

He gets the buyer to agree to declare to the HDB that the flat was sold for a much lower price. The buyer then pays the difference between the actual and declared price to the seller in cash.

To sweeten the deal, the seller usually gives the buyer a discount on the market value of the flat.

The scam is crafty because, on paper, these transactions can look flawless and are hard to detect.

Privately, the agent drafts a ‘letter of undertaking’, binding the buyer to pay the seller cash - sometimes under the pretext of paying for furniture and fixtures.

When the buyer pays up and the deal is done, the agent destroys the document and any paper trail. Neither the HDB, property agencies or lawyers will ever see it.

Everyone is a winner. The buyer gets a good deal and the seller gets some cash. But the catch is: The scam carries a jail term and/or a fine.

The deal is illegal because the seller is indirectly siphoning off money in advance from his CPF.

The HDB told The Straits Times that it was a ’serious offence’ to declare false resale prices, adding that if there was sufficient evidence, the case would be referred to the police.

Conviction could bring fines of up to $5,000 or jail of up to three years.

Such scams are not new to the market and HDB flat owners sometimes resort to them when they want to unlock cash.

In 2001, a ‘cash-back’ scheme was exposed, which involved over-declaring the agreed selling price.

It allowed the buyer to get a higher loan either from a bank or the HDB, with the ‘extra’ cash divided out among those involved.

Agency bosses told The Straits Times that they strictly discourage agents from handling these sales.

But despite the risk of getting caught, agents say such deals are popular in estates such as Simei, Pasir Ris and Bishan, which commanded high prices in the previous boom.

Some say the deals started surfacing as early as last April, when the HDB market started to pick up.

Resale prices rose 17.5 per cent last year after years in the doldrums, prompting more flat owners to think about selling their flats.

An agency boss, who declined to be named, has heard of up to 30 such cases.

PropNex chief executive Mohamed Ismail said it was hard to determine exactly how many such deals are being done, but he estimated that about 80,000 - or 10 per cent - of HDB homes are still in negative equity.

Negative equity means a flat owner’s mortgage is worth more than the home’s value now. Owners of these flats are more likely to take part in such deals.

Another agent said he is approached at least once a month to take part in such deals but he turns them down. ‘This is my rice bowl. Why would I want to risk going to jail for just a sale?’ he said.

‘Magic dollars’ scam

LET’S say a seller has a five-room flat that cost $450,000 in 1996, but which is now valued at $350,000.

At an average of $30,000 cash over valuation (COV) for a five-roomer, according to HDB data, the flat can sell for $380,000. But that is still significantly below the $450,000 the seller paid.

This means the sale proceeds will likely be used to pay off the seller’s loan and replenish monies used from his CPF account, leaving him with no cash in hand.

So the seller colludes with the buyer to declare falsely to the HDB that the sale was transacted at a lower value, often at valuation price, in this case $350,000.

As for the $30,000 COV, a $10,000 discount could be given to the buyer, who pays the seller $20,000 in cash.

This amount can vary up to tens of thousands.

‘Cash-back’ scam

THIS is not the first time that illegal sales have struck the HDB market.

In 2001, a ‘cash-back’ scheme involved over-declaring the agreed selling price of a property .

This happened at a time when HDB valuations were falling in a flat market.

By over-declaring, a buyer could get a higher loan, either from a bank or the HDB. The ‘extra’ cash was then distributed among the seller, buyer and agent.

At least one agent was convicted and fined $8,000 in 2005. The HDB stopped these deals by changing the rules to allow only an HDB-appointed valuer to value an HDB flat.

Source : Straits Times - 5 Mar 2008

Europeans and Americans view country as best in region while Asians say it is world’s top spot.

SINGAPORE has hit another home run with expatriates - Europeans and Americans reckon it is the best place in Asia to live, while Asians say it is the top spot anywhere in the world.

The annual survey, which has a major influence on luring foreign talent, compares living standards in 254 locations across the globe.

For the sixth straight year, Asian expatriates have named Singapore as the best city worldwide for quality of life.

Its fine infrastructure and health facilities, cosmopolitan population, and low health risks and crime rates scored the Republic plenty of points among those surveyed, according to the poll by human resources consultancy ECA International.

Singapore trumped the Australian cities of Sydney and Melbourne, which were ranked the second and third most attractive places worldwide for Asians to call home .

Europeans and Americans were also sold on Singapore, ranking it as their preferred choice in Asia, although on a global scale, they opted for Copenhagen. The Danish capital also ranked as the fifth best place worldwide for Asians to live in.

About 1,500 companies globally buy the report, so the ranking can greatly influence hiring policies.

ECA recommends that companies do not need to pay any ‘hardship’ allowances to their workers assigned to Singapore. This allowance, which can comprise up to 30 per cent of an expat’s salary, is paid to workers in countries where the standard of living is lower than in their home base.

The more comfortable the location, the lower the allowance and Singapore’s is set at zero.

However, there were some negatives this year with scores for air quality in Singapore hit by the smoke haze.

The Republic’s score for availability of quality accommodation also declined slightly, primarily due to the collective sale fever which has ‘reduced the supply of decent-standard accommodation in Singapore, irrespective of cost’, said Mr Lee Quane, ECA International’s general manager.

This narrowed the gap between Singapore and other locations such as Hong Kong, which jumped eight places in the rankings to No. 4 on the list of Asian cities with the best quality of life for Asians.

Hong Kong’s scores improved, thanks to significantly better scores for personal security.

Mr P.Maran, an Indian national in his 40s working for a technology multinational firm here, said Singapore was ‘by far the best place for Asians to live as it is safe, clean and is closer to home than other locations such as Australia’.

But he noted that the cost of such high-quality living comes at a price. ‘The cost of everything from rental to transport to children’s education is shooting up,’ he said.

While this survey did not rank Singapore in terms of cost of living, an ECA study last November showed that the Republic rose 10 places in a global survey of the most expensive places for expatriates to live.

But despite the jump, Singapore, at No. 122, is still significantly cheaper for expats than Hong Kong and other key global centres, such as London - at No. 10.

Popular choices Top 10 locations in the world for Asians to live

1. Singapore

2. Sydney (Australia)

3. Melbourne (Australia)

3. Kobe (Japan)

5. Copenhagen (Denmark)

6. Canberra (Australia)

7. Vancouver (Canada)

8. Wellington (New Zealand)

9. Yokohama (Japan)

10. Dublin (Ireland)

Source : Straits Times - 5 Mar 2008