RICS Modus, Asia edition – Q4, 2014

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IN THIS ISSUE

GENDER POSITIVEFour women forge ahead in the profession / 28

CLEAN UP Bribery and corruption confronted / 32

HARSH TREATMENT How to combat labour exploitation / 38

Q4 2014

ricsasia.org/modusasia

MAKE THE CONNECTIONOpportunities in global infrastructure / 16

MODUS_Asia_Q4.14_P01_Coverv2.indd 1 07/10/2014 13:53

MODUS_Asia_Q4.14_P02_Savills ad.indd 2 07/10/2014 14:10

44-45 CAREERSHow to deal with a diffi cult boss, and Mott MacDonalds Alasdair Thompson FRICS

46 BUSINESSSupport your interns properly, and the results will be rewarding for both parties

47 LEGAL 101Stephen Lee Kalun FRICS discusses Hong Kongs standard working hours legislation

50 MIND MAPRICS Maarten Vermeulen FRICS on issues and opportunities in European real estate

PLUS48 Events

16 COVER STORYInfrastructures wonderful world of opportunity

24 A UNIVERSAL LANGUAGERunning the rule over International Property Measurement Standards

28 THE XX FACTORFour female RICS members from across Greater China share their experiences of breaking through industry barriers

32 WHAT WAS I SUPPOSED TO DO Bribery, corruption and the built environment

38 AN UNCOMFORTABLE TRUTHForced labour on construction sites is not just a problem for the rest of the world

42 GHOST IN THE MACHINESmart buildings do battle with cyber stalkers

06 DIFFERENCE OF OPINIONShould public money be used to preserve Hong Kongs heritage buildings? We hear two points of view

07-15 NEWS IN BRIEFEssential industry news, advice and information for RICS members

08 THINKING: BENJAMIN HENRY TOWELLInterest in Singapores green lease finally gaining momentum

13 PRESIDENTS COLUMNLouise Brooke-Smith FRICS ponders the pluses of RICS status as a professional organisation

Theres probably never been a better time to be a surveyorworking in this sector. Even places that are not well populated

are going in for massive investment in infrastructureKEITH RUDD FRICS, ARUP

COVER STORY, P16

Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

MODUS Q4 2014RICSASIA.ORG

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OUTSIDE REGULATION PLAYSir, By coincidence, I opened my latest demand from RICS Regulation while reading Modus. I was annoyed by the tone of the letter and the fact that it appears to apply a criminal record to someone who has not submitted their annual return well in advance.

I can sympathise with the need to get returns, but perhaps a bit of tailoring of the style of the demands might achieve better results. Many of the small members of the RICS annually face the cost-benefi t decision about whether to stay a member. Impersonal, strident demands can only have a negative impact on this decision.

I do not have a large staff to delegate this to and to complete an annual return I have to fi nd time out of the ever-present demands of the day job. I am not asking for sympathy, just understanding that it is not always easy to fi nd this time. Maybe a more sympathetic approach could be adopted that would encourage rather than threaten? It might help members resist the temptation to write letters to journals in preference to completing their annual return. Simon Thorp MRICS

Many thanks for your letter. You are certainly not alone in believing that we can improve the tone of our regulatory communications. I completely agree that this is an area we need to tackle. A project is already under way to solve the issue and I hope you will soon see clear change. We will be seeking members views in a few months time to fi nd out whether were making progress.Gillian CharlesworthDirector of Regulatory and Corporate Aff airs

FOR SUNDAY Editor Oliver Parsons / Art Director Christie Ferdinando / Contributing Editor Brendon Hooper / Production Editor Andy Plowman / Junior Designer Isabella Fernandes / Creative Director Matt Beaven / Account Director Karen Jenner / Account Manager Wesley Kirschner / Advertising Sales Director Charlotte Turner / Asia Advertising ROF Media, Bryan Chan, +852 3150 8912, [email protected] / Production Manager Michael Wood / Managing Director Toby Smeeton / Repro F1 Colour / Printers ROF Media / Cover illustration LaTigre / Published by Sunday, 207 Union Street, London SE1 0LN sundaypublishing.com / FOR RICS Kate Symons, Mark Goodwin and James Murphy [UK] / Roy Ying and Jeanie Chan [Asia] [email protected]

Join the

debateREACTIONS AND RESPONSES

FROM PREVIOUS ISSUESDo you have an editorial comment about

this issue of Modus? Please email [email protected].

RECRUITMENT SLEAZE Sir, Since passing my APC this May, I have been inundated with emails from recruiters trying to poach me for new jobs. Most got my details from RICS-published results or found me on LinkedIn. While I appreciate that becoming chartered is a huge achievement and puts me into a new professional standing, I question how ethical it is that 110 recruiters have contacted me in three months. Should they be able to access my information without being an RICS member and should there be more awareness for people about to sit their APC that this will happen?Jessica Wortelhock MRICS, London

WORDS OF A FEATHERSir, Your article on the use of glass focused on new techniques to improve energy performance of buildings and so reduce their environmental impact (Modus, global edition, July/August 2014). But it omitted to refer to the risk that ever larger areas of glass pose to bird life. The RICS rightly places great importance on green issues, but our profession needs to be aware of how hazardous glass structures are to birds and we should be pioneering the use of bird-safe design elements in buildings.Tim Knowlman FRICS, Amboise, France

Feedback

@Daz_Midgley Interesting article in this months @modusmag providing an insight into the Crossrail project. #transport #investment #worldclasscity #LDN

@Steven_Ramage Forget NYT, Huff Post etc. Im mentioned in this months edition of @modusmag! #fameatlast

@VerticeDM Crowd funding reality for development funding is its too slow and presents diffi cult reward structure for investors

@kathf48 Great #FACMAN feature in @modusmag so gd to read 12k RICS members on the FM pathway #professionalisation

@mrgkirk Cold glass of something grape-based and latest @modusmag is a very pleasant way to spend an hour sat in the garden.

@stuart_pannell @modusmag Another great edition, but where have all the cool news snippets gone?

@NickLeaney Good countryside mind map in @modusmag & need for support of local communities but crucially they fi rst have to accept need for change

@RICSnews // @RICSAsia

USEFUL RICS NUMBERS CONTACT CENTRE+852 2537 7117 Enquiries / APC guidance / Subscriptions / Events / Training / Bookshop REGULATION HELPLINE +852 2116 9713 CONFIDENTIAL HELPLINE +44 (0)20 7334 3867 DISPUTE RESOLUTION SERVICES +44 (0)20 7334 3806 UK SWITCHBOARD +44 (0)20 7222 7000


MODUS ONLINERead the latest and all previous issues of Modus Asia edition at ricsasia.org/modusasia. To reduce your carbon footprint, unsubscribe your hard copy and receive a digital edition only by emailing your name and/or membership number to [email protected] with the subject line Unsubscribe Modus Asia.

MODUS_Asia_Q4.14_P03-05_Contents_v2.indd 5 07/10/2014 14:32

The RICS International Heritage Conservation Conference takes place in Hong Kong on 9 January 2015. For more information, and to book your place, go to ricsasia-conference.org

06 RICSASIA .ORG

BOB DICKENSHEETS VICE-PRESIDENT, SCAD HONG KONG

CONSIDERING THE PRESSURE TO PROVIDE THE BASIC NEEDS of homes for Hong Kong residents, one would think this subject would require little discussion. The immediate answer would be housing. The bottom line says

that new construction is more cost effi cient than preserving, and vertical growth creates more usable space in a sustainable manner. The act of preserving heritage architecture consumes precious public money and rarely does an old building fi nd a suitable new use.The need for housing and the response of government to provide this service has a record

of improvements that stretch back more than 60 years and today, most residents receive housing assistance of some sort. Supporting the primacy of housing in this debate is the political pressure placed on districts and planners to meet the needs of constituents and developers, and with the growing increase in the number of elderly residents, the need is compounded. Immigration further adds to the story. How else could a city maintain its international ranking if it cannot provide the basic service of shelter for the many members of the community needed to support its corporate and service industries? Public safety also plays into the debate, as many of the

ageing shophouses that are so prevalent in urban south-east Asia and early public housing units are now past their lifespan and may be hazardous environments for both residents and pedestrians. Heritage buildings might provide diversity in style,

richness of environment and cultural enjoyment, but who will receive the greatest benefi t of these efforts working residents or tourists?

Should public money be used to preserve Hong Kongs heritage buildings? Discuss.

DR ESTER VAN STEEKELENBURG FOUNDER AND DIRECTOR, URBAN DISCOVERY HONG KONG

HERITAGE HAS AN IMPORTANT ROLE IN CREATING and maintaining a vibrant and viable urban future. City planners and developers are slowly realising that historic

buildings and neighbourhoods have indisputable intrinsic value as places where people want to spend time and will spend money. Historic buildings have unique architectural features, while historic neighbourhoods have a human dimension where residents, businesses and shops co-exist. Theres a vibrancy that is diffi cult to replicate and so often lost in skyscraper cities. Preserving heritage and injecting it with new life also has an important

socio-economic function: to ensure the character of a city and its collective memory stays alive. This was the reason the Singaporean government abandoned its urban renewal policy in the 1990s it recognised that residents felt a loss of cultural identity living in high-rise fl ats and business travellers complained that the city looked just like any other. The government invested in regenerating some of the older districts and the city centre again became an attractive place to live, work and play. People started spending money, and soon after the tourism dollars returned. Preserving heritage buildings is often perceived as fi nancially unfeasible.

This may be true if one looks at the short-term viability of renovating an old building versus demolition and new construction, especially in Hong Kongs competitive real estate market. However, if one looks at the variety of long-term benefi ts of revitalising historic neighbourhoods, rather than individual real estate assets, the economics of heritage start to make sense.

STEPPING INTO DIFFERENT SHOESIn an exercise to better understand the subject, heritage preservation specialist Bob Dickensheets argues for a side he does not fully support

DIFFERENCE OF OPINION

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Intelligence News / Reviews / Opinions / Reactions

MODUS_Asia_Q4.14_P06-15_Intelv5.indd 6 08/10/2014 12:41

What is it?As concerns rise in the UK over the eff ects of a potentially damaging housing bubble, some of the blame particularly in London has focused on overseas buyers, whose transactions push up demand and house prices where supply is constrained. Savills estimates overseas buyers are behind around 85% of new-build property purchases in central London and more than two-thirds of re-sales. Thinktank the Smith Institute argues that a property speculation tax (PST), which is a well-established policy in countries such as Germany and Malaysia, should be considered as part of a comprehensive housing action plan to tackle the UKs housing crisis. It could go some way to changing the speculative behaviour of investors and help cool the feverish market.

What could it actually achieve?It is thought a UK version a one-off and tapered tax would focus on curbing speculation, while excluding ordinary homeowners and longer-term investors. It would incentivise holding on to assets and discourage buying and selling for speculative gain. Furthermore, if the PST could be collected by Revenue & Customs, which already monitors most property transactions, it would make tax avoidance more diffi cult. Signifi cantly, it is argued a PST could also raise up to 1bn ($1.6bn) of vital funds for new, aff ordable homes at a time of fi nancial austerity in the public fi nances.

Find out more: smith-institute.org.ukShould PST be introduced into the UK market? Email [email protected] or tweet using #RICSmodus

Property speculation tax: a proposed solution to cool down the UKs rapidly overheating housing market

POWER SHIFTAfter receiving negative press

for targeting overseas

buyers, fl ats in next phase of

Battersea Power Station were launched in London-only

sale in May


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Members rally round Yunnan rebuilding e ort

RICS members are on the ground helping with the rebuilding and recovery eff ort in Chinas Yunnan Province, following a devastating earthquake that hit the region in the summer. The magnitude 6.5 quake on 4 August killed at least 615 people, injured more than 3,000, and destroyed around 220,000 houses.

Soon after the disaster, RICS President Louise Brooke-Smith emailed all members in Yunnan to check if they were safe, and if RICS could off er assistance in restoration work. All members are well and some were already working in the disaster zone to assist in the rescue. Xu Ji Song MRICS described how his organisation had sent four investigation teams specialising in earthquake hazards to the region, to identify on-going issues and prevent further risk to life.

RICS accredits Singapore built environment courses

Two built environment undergraduate programmes at SIM University (UniSIM) in Singapore have been accredited by RICS, following a panel review by RICS Education professionals.

The accreditation panel scrutinised course materials, assessment papers and feedback from students, alumni and employers on the Bachelor of Science in Facilities and Events Management, and Bachelor of Building and Project Management courses, and found that both met RICS standards.

For more information, visit unisim.edu.sg/programmes.

THE BIG IDEA

THE DATA

Intelligence

NEWS IN BRIEF

ricasia.org/modusasia

GLOBAL HOUSE PRICESWhich countries reported the greatest rises and falls in house prices during 2013?Source: Knight Frank

Dubai Estonia

Croatia Cyprus Greece Hungary Italy

Turkey Brazil(asking prices)

China(Beijing andShanghai)

Sub-Saharan Africa

10M1992

173

223

10M2013

East Asia South-east Asia South Asia

Los AngelesWashington DC

Atlanta

Barcelona

Latin AmericaWorld

167

279

64

140

295314

40

842

1015

57

2%

44%15%

28%

18% 16%14%

12%

-10% -9% -8% -8%-5%

1%

1%

1%

4%3%

1%

1%

London

Paris

Milan

Dsseldorf

Berlin

Lyon

China

20

58

29

1

India

Reactorsoperable today

Under construction

Planned

21

France

57

1

100

US

6 22

Japan

48

3 9Russia

33

3110

UK

16

40

5 5

Western Cape CBD Western Cape non-CBD

2011 2012 2013

4,000M, RAND

2,000M, RAND

6,000M, RAND

8,000M, RAND

10,000M, RAND

Gauteng CBD Rest of Souh AfricaGauteng non-CBD

856m1991

1.04bn2001

1.15bn2008

1.47bn2030

Urbanisation rate

Storagefacilities/4 millionpopulation

/1 million

Poland

Americas Europe Asia

Germany Spain France Ireland Sweden UK Denmark Netherlands Finland European average

29.21,006

11.6350

26%28%

30%

40%

23.1303

100%90%80%70%60%50%40%30%20%10%-10%-20%-30%-40%-50%-60%-70%-80%-90%

-100%

Spanish commercialproperty market

Available space %

Occupier demand %

$123K

HONG

KON

G

$115K

LOND

ON

$112K

NEW YOR

K

$107K

PARIS

$76K

SING

APOR

E

$74K

TOKY

O

$72K

DUBA

I

$70K

MOS

COW

$60K

SYDN

EY

$44K

SHAN

GHAI

$30K

RIO DE

JANE

IRO

$28K

MUM

BAI

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2008 2009 2010 2011 2012 2013 2014

Population of India

Gross lettable area (m m )2 / Number of new centres

Q1 Q2 Q3 Q4

LIVE/WORK COST PER EMPLOYEE PER YEAR IN 12 GLOBAL CITIES

Source: Savills World Research


08 RICSASIA .ORG

In Singapore, the government is the biggest champion in pushing the property and construction industries to reduce their environmental impact. Unlike many other countries, it is the governments Building and Construction Authority (BCA) that writes, administers and certifi es buildings under the national green building rating system known as the BCA Green Mark. Its an approach that has allowed policies and road maps to be successfully built around this platform. The BCA launched Singapores first

Green Building Masterplan in 2006 to place the concept of sustainable development at the forefront of industry and consumer awareness. The plan brought together financial incentives, legislation, industry training programmes and a public outreach campaign to drive this effort. A second masterplan, launched in 2009, placed greater emphasis on the performance of existing buildings, which led to environmental legislation for the retrofi t of existing commercial buildings. Building on the relative success of these plans, the

third masterplan was launched in September, which for the fi rst time acknowledged the fact that buildings exist to serve human activity and therefore their stakeholders need to play a collective role in creating a live, work and play environment that conserves resources. A key aim is to foster greater collaboration, engagement and to incentivise occupants, as their activities contribute signifi cantly to a buildings energy and water usage. To help, the BCA has rolled out a suite of occupant-

centric Green Mark schemes and has been promoting the concept of an environmentally-friendly leasing

arrangement. The green lease concept, in short, is an agreement between landlord and tenant, which sets out objectives on how the building is to be improved, managed and occupied in a sustainable manner. This yields cost savings in energy and water, and provides a better indoor environment for improved occupant health and wellbeing. The green lease acknowledges the possible synergies in

cooperation between landlords, tenants and service providers and contractors. It addresses traditional barriers to implementation, such as split incentives and interests between owners and occupiers, by ensuring that the parties with influence over key aspects of environmental performance obtain some benefi t from implementing the

improvements. For example, by installing energy-effi cient lighting that generates less heat, a landlord benefi ts from a reduced overall air-conditioning energy consumption, while a tenant can benefi t from the reduced energy bill.A green lease toolkit has been produced by BCA to fi ll the gap in the market.

It provides a list of standard clauses that contain provisions for monitoring and improving energy effi ciency, water effi ciency, air quality, sustainable materials and waste management, through a target-based approach applicable to commercial buildings landlords and tenants, and are fully editable to suit the building or individual tenants context. Developed over several years, the toolkit was partly inspired by the RICS paper Doing Well by Doing Good. Indeed, RICS had some involvement with the toolkit creation through providing a peer review of the draft Green Lease via the Singapore offi ce, and arranged a well-attended CPD session as a platform to share the approaches, considerations and diffi culties behind the concept of green leasing.Green leasing is a new approach to real estate in Singapore and there are

many challenges in its implementation, but Ive noticed a surge in demand for more information on the approach and its commercial applicatiom. As such, I have happily become increasingly busy fielding questions on how to incorporate green leasing principles into a greater number of projects. So the quest for the holy grail of greater environmental mediation of buildings and occupants continues, but theres no doubt we are moving in the right direction.

I have happily become increasingly busy fielding questions on how to incorporate green

leasing principles into a greater number of projects

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Whats that? A lot has been written about 3D printing and its potential use in everything from making better architectural models to even entire houses, but engineers at Arup are thinking about its application at the nuts and bolts level in construction. In what way? Using a 3D-printing technique called additive manufacturing. Arup has been working with UK-based 3D-printing agency CDRM to produce a prototype for bespoke structural steel elements used in complex projects, which could revolutionise how materials are made for certain structures. At present, their focus has been on the humble steel node the team completely redesigned its complex geometry to be lighter, stronger and more effi cient for use in a street lighting project. While this particular project is on hold, the fi rm hopes to continue its research on a small-scale live project.

The excitement lies in the techniques huge potential to reduce costs, waste and the carbon footprint of projects when used on a large scale, says Salom Galjaard, the projects team leader at Arup. By using additive manufacturing, we can create lots of complex, individually designed pieces far more effi ciently. But most importantly, this approach potentially enables a very sophisticated design, without the need to simplify the design in a later stage to lower costs. arup.com

3D-printed construction materials

CONTAINS ADDITIVES

Arup and 3D printer CDRM

have been working on

a building material

prototype using additive

manufacturing technique


Hong Kong Chairman Andrew Lee takes o ce

Andrew Lee FRICS has been elected Chairman of RICS Hong Kong for a one-year term of offi ce, eff ective from 1 September. Lee is managing director of Sunbase International Properties Management and has extensive experience in the fi eld of facilities and property management.

It is my honour to be elected as the new Chairman of RICS Hong Kong, commented Lee. This coming year is a challenging one and we will be focusing on the governments housing policies, including the operational details of the Pilot Scheme for Arbitration on Land Premium [News in brief, overleaf].

We will also be looking to further develop the property management licensing system, to further address future urban development and conservation policies, and we are concerned about rising construction costs.

We are also keen to promote the RICS Valuer Registration Scheme, and to promote and contribute to the career development of surveyors.

Members input sought for Surveying the Future project

RICS Surveying the Future careers campaign is quickly galvanising industry support, but needs more members to contribute their expertise and thoughts about how best to develop professional talent in the property, land and construction industries.

If you would like to be involved, email Rebecca Hunt: [email protected], or Kate Owen: [email protected]; visit rics.org/surveyingthefuture or tweet using #surveyingthefuture.

WE LIKE

ONE THING I KNOW

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GLOBAL LEVELS OF UNDERNOURISHMENTChange since 1992 in the number of the worlds population who are undernourishedSource: Food and Agriculture Organization of the United Nations

Dubai Estonia




Sub-Saharan Africa

10M1992

173

223

10M2013



Atlanta

Barcelona

Latin AmericaWorld

167

279

64

140

295314

40

842

1015

57

2%

44%15%

28%

18% 16%14%

12%

-10% -9% -8% -8%-5%

1%

1%

1%

4%3%

1%

1%

London

Paris

Milan

Dsseldorf

Berlin

Lyon

China

20

58

29

1

India


Under construction

Planned

21

France

57

1

100

US

6 22

Japan

48

3 9Russia

33

3110

UK

16

40

5 5


2011 2012 2013

4,000M, RAND

2,000M, RAND

6,000M, RAND

8,000M, RAND

10,000M, RAND


BIM is not just a fad, it is here to stay

Mac Muzvimwe MRICS managing surveyor at Faithful + Gould BIM, BIM, BIM ... and no, it is not just another fad. I have been BIMing for nearly fi ve years, and I know that it is here to stay. Our social lives are

now dominated by technology, and building information modelling (BIM) introduces that technology to our industry, be it making a 3D laser scan of an existing building, extracting quantities from a model within a matter of minutes, or showing a 3D walkthrough video

to a group of primary school students and getting instant feedback. It is not all about technology, but collaboration, too. Sectors such as car manufacturing and aerospace already collaborate frequently, and BIM fosters that same collaborative attitude within our industry.



Once I used to be an ordinary building surveyor, working in a private practice carrying out ordinary building surveying work. Then I took a job working for a charity that helps disabled people adapt their homes. I thought I knew something about disabled access, but all my years of education and training could not equip me for meeting human frailty this closely.The most shocking realisation

was how alike many of my clients and I were. They didnt think it would happen to them either.If we live to be old, most of

us will probably, sooner or later, suffer from a chronic degenerative disease, as this is now the most prevalent cause of death at advanced age. It is increasingly common in later life to have a prolonged period of deteriorating health and if we live to be old, we are likely to be disabled for our last years.Not many of my clients

planned ahead for this, and fi nd themselves living in totally

unsuitable properties. Those who did plan ahead often bought a bungalow and installed a shower, only to fi nd that they can no longer manage the step or stand for long enough to wash.The most stubbornly diffi cult

properties to adapt are the oldest and the newest. Victorian terraces, built when

people did well to live past 50, have precipitous stairs, narrow doorways and whimsical changes of level, but are at least relatively spacious and built of solid materials. Not so houses built within the

last 20 years, in which circulation space is a luxury and internal walls usually cannot support wall-hung fi ttings. So far, two of my clients have

been former chartered surveyors identifi ed by copies of Modus in the house. Im not sure if it is signifi cant, but both were living in Victorian terraced houses.

Are you interested in writing a future Secret Surveyor column? Email [email protected]

Arbitration on Land Premium surveyors shortlist imminent

RICS will soon release a list of chartered surveyors who have met the requirements of the pilot scheme for Arbitration on Land Premium, launched in August by the Hong Kong government. The scheme aims to resolve disputes between landowners and the Lands Department by speeding up land premium agreements on land lease modifications or land premium disputes.

Listed RICS members must have at least 10 years experience in local land matters. Impartiality is crucial to arbitration and valuation, and all chartered surveyors providing valuation services using RICS valuation standards are required to register under RICS Valuer Registration, which regulates members through annual audits and reviews.

Dr Albert So FRICS, Chairman of the Valuation and Planning & Development Professional Group committee, said: The governments pilot scheme for Arbitration on Land Premium will expedite dispute resolution of land premiums, therefore speeding up land supply, especially through the release of land from developer reserves. RICS list of qualified chartered surveyors for the scheme will herald an impartial arbitration process that complies with international standards.

For more details, email [email protected].

RICS Vietnam Advisory Group launces with CPD events

A new RICS Vietnam Advisory Group is setting up a series of CPD events in the coming months, among them a December valuation workshop to be attended by the local heads of valuation in global firms such as CBRE, JLL, Colliers, Cushman & Wakefield and Savills. University students will also be invited to the workshop to gain an insight from the experiences of RICS members.

SECRET SURVEYORI thought I knew about disabled access, but all my training could not equip me for meeting frailty this closely

PROPERTY SAFE BET FOR ASIAN INSURERSLess restrictive investment regulations could encourage Asian insurance companies to increase their real estate assets by $75bn over the next fi ve years, predicts CBRE.

Regulations that dictate how and where insurers can invest have historically been tight in Asia, limiting the capital deployed into real estate assets. However, several countries in the region have started to allow overseas direct investments, and increased investment allocations to property.

Two years ago, China allowed insurance companies to invest abroad, and earlier this year increased the maximum allocation

allowed in real estate from 20% to 30% of total assets.

Last year Asian insurers completed $2.4bn of property deals. CBRE predicts that the combined eff ect of an increase in insurers asset sizes and further liberalisation will result in Asian insurers real estate investment assets growing from $130bn in 2013 to $205bn in 2018.

Download CBREs report at bit.ly/cbre_asia_insurance

NEWS IN BRIEF

Intelligence

INVESTMENT


PING STRIKESChinese

insurance group Ping An bought Lloyds

building last July for 260m


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Hong Kong Awards 2015

ricshkawards.com

The RICS Hong Kong Awards showcase outstanding achievements and developments in Hong Kongs land, property and construction industries and across the built environment. The awards are open to everyone working within the property profession.

Nominations are now open!Nominations close: Friday 12 December 2014

Award presentation ceremonyDate: Friday 13 March 2015Time: 6:30pm till lateVenue: Grand Hyatt Hong Kong


REAL ESTATE HOTSPOTS FOR MIDDLE EASTERN INVESTORSLondons reputation as a safe haven means it is in a class of its own for Gulf-based moneySource: CBRE

Dubai Estonia




Sub-Saharan Africa

10M1992

173

223

10M2013



Atlanta

Barcelona

Latin AmericaWorld

167

279

64

140

295314

40

842

1015

57

2%

44%15%

28%

18% 16%14%

12%

-10% -9% -8% -8%-5%

1%

1%

1%

4%3%

1%

1%

London

Paris

Milan

Dsseldorf

Berlin

Lyon

China

20

58

29

1

India


Under construction

Planned

21

France

57

1

100

US

6 22

Japan

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3110

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16

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Hong Kong Awards 2015

ricshkawards.com

The RICS Hong Kong Awards showcase outstanding achievements and developments in Hong Kongs land, property and construction industries and across the built environment. The awards are open to everyone working within the property profession.

Nominations are now open!Nominations close: Friday 12 December 2014

Award presentation ceremonyDate: Friday 13 March 2015Time: 6:30pm till lateVenue: Grand Hyatt Hong Kong

US-based clothing brands are expanding into Asia faster than any other, research from JLL shows. Around 21% of retailers expanding into Asia are from the US, followed by Italy and the UK, and the regions speedy growth and rising purchasing power of its emerging middle-class consumer base is expected to attract even greater interest from international retailers.

In the coming decade, JLL notes, urbanisation will drive wealth creation and change consumer buying habits in the Asia-Pacifi c region. Established US mid-tier brands such as American Eagle and Michael Kors are expected to grow in peripheral Asian markets, while luxury retailers are likely to continue focusing on core markets such as Hong Kong, as many brands view the city as a stepping stone to mainland China. Shanghai and Beijing will also remain top targets.

At the same time, mid-tier brands are increasingly targeting the regions growing middle-class population, which is predicted to reach 1.32 billion by 2020. Currently China has the largest middle-class population in Asia-Pacifi c at 250 million, followed by Japan with 120 million. By 2020, Chinas middle-class population is expected to more than double to 590 million.

Rising income levels in Asia mean that an all-new consumer base can now aff ord to purchase fashion and luxury items, said Michael Hirschfeld, senior vice-president of JLLs national retail tenant services. Middle-class buyers are rapidly turning to the urban core, creating dense areas with top-shelf demographics a perfect entry point for international retailers.

US LABELS TO TARGET ASIAS MIDDLE CLASS

KORS MARKETMichael Kors opened his fi rst Chinese fl agship store at Shanghais JingAn Kerry Centre in May this year

SOME THINGS NEVER CHANGE. OUR CORE PURPOSE IS ONE EXAMPLE: since 1881 our Royal Charter has required us to act in the public interest. This is what separates RICS from a trade association, although life is rarely so clear-cut. To some observers, professions can appear self-serving. They might

appear to delimit practices, control entry into the profession and seek to rig markets. And yet, defi ning practices, developing knowledge and maintaining entry standards are surely necessary measures that ultimately benefi t society. Without them, how could we credibly claim to protect the public from incompetence and unscrupulous or illegal acts at the individual level? A professional body also has the responsibility to step back and look at the

bigger picture. What is in the long-term public interest, even if involves diffi cult choices in the short term? What are the global trends that will affect us locally and how do we adapt to them? These questions require us to re-examine long-standing assumptions, and to think imaginatively about how the world may change, reshaping professional responsibilities and accountabilities. Our Futures project is doing just that. It will be important to relate the Futures fi ndings not only to our public

interest remit but also to the value they bring to members. These include our status in the eyes of clients; recognition of RICS by governments, fi nancial and commercial organisations, creating a market for members services; market advantage through a superior qualifi cation; knowledge in the form of practice standards and CPD (continuing professional development), and a growing membership as a source of business opportunities and good-practice sharing. This package can be summarised as a sense of identity common to all members, across borders and irrespective of specialism. I see an opportunity for us to adapt to a changing world in ways that reinforce our sense of professional identity. Moreover, we can use this to our advantage in building collaborative relationships with other professional bodies. Operating as a professional body gives us our clarity of purpose and a

licence to infl uence public policy, and to set and regulate standards. The real benefi ts to members lie in this public interest remit the more our profession benefi ts society, the better for our members. Follow Louise on Twitter @LBSLouise

STANDARD BEARER

Real value of RICS

membership derives from the status of

belonging to a professional

organisation, rather than an industry lobby

LOUISE BROOKE-SMITH FRICS RICS PRESIDENT

Our public interest remit is what lifts us above being a trade body


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Join top-level global property professionals

Bridging the East and the West

for Global Real EstateGain in depth insight into: Asia Pacifi c inbound and

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Regional developmentopportunities and projects

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Celebrate excellence with prestigious awards

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Raising industry standards in Sichuan Province

RICS and the Sichuan Provincial Construction Engineering Project Management Association have signed a memorandum of understanding to support the growth of built environment professionals and to raise industry standards in the Sichuan region.

The agreement will help the development of project management professionals in particular, through personnel training, the exchange of information such as sharing project and academic research, and greater project cooperation.

This will be a giant leap for the growth and recognition of RICS in south-west China, said Tony Ho, Deputy Director of RICS North Asia. It will not only raise the standard of project managers of Sichuan to an international level, but it will also speed up the development and transformation of the industry in the province.

RICS applies carbon rating to buildings whole life-cycle

RICS has published a methodology to calculate the total carbon emitted for a building its embodied carbon from its construction to demolition.

The measurement is a crucial development in the world of carbon accounting, as embodied carbon becomes a more signifi cant part of a propertys overall carbon burden.

Often embodied carbon levels reach up to 70% of the total carbon in standard buildings. If embodied carbon is not considered, even energy-effi cient properties may not become carbon positive for at least 40 years.

The methodology provides a fuller explanation of the impacts of decisions made at the design and construction stage of a building.

To download a copy of RICS Methodology to Calculate Embodied Carbon Global Guidance, visit rics.org.

International hotel chains have ambitions to expand throughout China, despite a slight dip in the number of visitor arrivals in the country, reports Knight Frank. The firm analysed six cities Beijing, Shanghai, Guangzhou, Hong Kong, Macau and Taipei and of these, Macau was the most active in 2013, adding more than 1,700 five-star hotel rooms, followed by Beijing and Guangzhou. In the first half of this year, Beijing was the most active, adding at least 1,300 rooms.

In recent years, Chinas hotel market has faced increasing challenges, such as competition

among local and international hotel brands, slower local economic growth, increasing operating costs and the governments policies to curb the consumption of luxury goods and services, said David Ji, director and head of research and consultancy, Greater China, at Knight Frank. Despite this, international brands have continued to put their confidence in Chinas hospitality market by launching aggressive expansion plans.

The report found Hong Kongs hotel industry remained stable in the first half of 2014, backed by strong visitor numbers. Furthermore, Knight Frank expects the Hong Kong governments proposal to control the number of visitors from mainland China by adjusting the Individual Visit Scheme to have a limited impact, and the local hotel market should not be notably affected.

Meanwhile, Taiwan has recorded an increase in the number of international visitors since it opened its tourism market to mainland tourist groups in 2008 and individual tourists in 2011. The outlook for the regions hotel industry now looks positive for the long term.

DOWNLOAD Knight Franks Greater China Hotel Report 2014 at bit.ly/kf_chinahotels2014

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Retail Real Estate trends

Regional developmentopportunities and projects

Network with industry leaders

Celebrate excellence with prestigious awards

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What are the principles and techniques you need to successfully manage a large, technical project? Following a typical process from planning and scheduling to budgeting and control this book focuses on the needs and challenges of project

managers across the construction, engineering and manufacturing sectors. Chartered engineer Lesters guidance is closely aligned to the Association of Project Management and the Project Management Institute, and this sixth edition includes

new chapters on agile project management and project governance, as well as helpful real-life examples. It is also ideal for those studying for professional examinations.

What are you reading? Email [email protected] or tweet using #RICSmodus

PROJECT MANAGEMENT, PLANNING AND CONTROL ALBERT LESTER

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PLANES,TRAINS,

MODUS_Asia_Q4.14_P16-23_Infrastructure_v3.indd 16 07/10/2014 14:34

Infrastructure

Around the world, there is vast investment taking place in the transport, energy, water and communications networks that underpin

every aspect of modern life. In developed countries, the emphasis is on upgrading crumbling facilities after decades of under-investment. In the rapidly growing economies of the Middle East, Asia and Latin America, it is about building new networks from scratch, even entire new cities, as the global population grows to a predicted 9.5bn by 2050 and mass urbanisation continues. A 2013 report from the McKinsey Global Institute estimated that it would take $57tn of investment by 2030 just to provide the infrastructure to meet projected GDP growth 60% more than had been spent in the previous 18 years. This encompasses so many subsectors in so many countries that the biggest challenge for many is working out where to start. Infrastructure is booming everywhere,

says Keith Rudd FRICS, director at Arup.

Illustrations La Tigre

Fancy a job for life? Infrastructure is the worlds biggest growth market, with opportunities for the next 20 years and beyond, writes Katie Puckett

Theres probably never been a better time to be a surveyor or an engineer working in this sector. Growing cities need infrastructure in its widest sense, but even places that are not well populated are going in for massive investment in infrastructure. Across the Middle East, for instance, theyre realising that car-based travel is not the right answer in cities and are building metros to move people quickly.How to pay for all of this is a key challenge

for the worlds governments. There is a considerable gap between available funds and actual needs, which is leading many to explore the public-private partnership model (box, page 23) and creating an opportunity for professional services firms, suggests John Kjorstad, infrastructure hub leader at KPMG. That opens up the conversation. Theyre no longer looking for the lowest cost but the best service, and it becomes much more competitive. Investors also demand international best

practice, quality and assurance standards exactly what chartered surveyors can offer. Patrick Bruce FRICS, commercial director

ANDAUTOMOBILES

AND SEA PORTS, METRO STATIONS, MONORAILS, MAGLEV LINES AND MOBILE PHONE



18 RICSASIA .ORG

at Costain, has worked on transport and energy projects in the Far East and India, among them Hong Kong International Airport, which was funded by the World Bank. He sees the greatest demand for quantity surveyors on complex, multi-billion-dollar megaprojects with outside investors: If a project is funded by an organisation such as the World Bank, it would insist that everything is above board and set up in a responsible way with a commercial quantity surveying team making sure that money is properly apportioned. With so many opportunities out there,

the most pertinent question to ask is, where to go? KPMG has just changed the way it classifies infrastructure markets, identifying the greatest opportunity in two key groups. Mature growth markets include the UK and most of western Europe, Canada, Australia, Singapore and Japan open, transparent markets where private investment in infrastructure is well established. High-growth markets, meanwhile, are the economic powerhouses of the BRIC countries (Brazil, Russia, India and China) and, interestingly, the US.

The US hasnt really used private investment in infrastructure as much as Europe, says Kjorstad. Its relatively behind, along with BRIC- type countries with large GDPs that have allowed them to develop their own public funding systems for developing infrastructure. Were now starting to see some real progress in these markets, with private investment in energy, transport and even social infrastructure.The government body charged with

doubling the UKs exports of goods and services by 2020, UK Trade & Investment (UKTI), has identified 100 High Value Opportunities on infrastructure projects around the world. These are very substantial projects, which are either exclusively

ROB JACKSON, DIRECTOR, RICS MIDDLE EAST & NORTH AFRICAAcross the Gulf Cooperation Council (GCC) countries, there is $2.54tn of projects at design, bid or construction stage. The bulk of that investment is taking place in Saudi Arabia, UAE and Qatar, on roads, rail and airports, as well as the power and water networks to support them. Apart from Dubai, no city has a metro system, so networks are now being built in Doha, Abu Dhabi, Riyadh, Mecca and Jeddah among others. Rail is also attracting huge investment with the aim to develop national and GCC-wide networks there are no rail networks in the region with the exception of Saudi Arabia. Meanwhile, cities are seeking to establish themselves as aerospace hubs, emulating Dubai with large airport expansions.

All this means that there is a skills shortage, and demand for chartered surveyors of all kinds. Clients are looking for professional qualifications and RICS membership is recognised across the region.

The $2.5tn projectspipeline

MIDDLE EAST

infrastructure or where infrastructure is a significant part of it, and where there could be 250m [$410m] of contracts for UK companies to bid for, explains international trade adviser Raphael Channer. These projects are indeed scattered

around the world, from port expansion and deepwater drilling in Mexico, to the A$26bn ($24.4bn) the Australian government plans to spend on road upgrades over the next five years. But by far the densest cluster of investment is in the Middle East. UKTI recently hosted a tour of the UK for

representatives of Saudi Arabia, Kuwait, Qatar, Oman and the UAE. We asked each of them to name their four or five priority sectors for investment and infrastructure came top each time, says Channer. Qatar, for example, plans to spend $220bn on infrastructure by 2022, while Kuwait is building three cities from scratch, investing $75bn in airports, metro systems, ports and hospitals. Theres nothing in the US or Europe on the scale of whats going on in the Middle East, adds Channer.Across the Red Sea in Africa there is an

enormous need for infrastructure of every kind, but the real hotspot is oil and gas. There are so many resources there and so many opportunities to move in and develop people, says Norman McLennan FRICS, vice-president supply chain global

NETWORKS, HELIPORTS AND HIGH-SPEED RAIL, NOT FORGETTING NUCLEAR, COAL, GAS POWER, SOLAR PANELS AND WIND FARMS (PLUS ALL OTHER RENEWABLES) TO FUEL IT ALL. THEN THERES


Infrastructure

upstream oil and gas, at Sasol Petroleum International, which is developing Mozambiques significant gas fields. The challenge is that the supply chain is quite embryonic so it takes a lot of investment in supplier development to bring local firms up to the standard where they can compete in the global arena. McLennan sees plenty of opportunities

for surveyors in the upstream oil and gas industry upstream means extraction, downstream covers refining and distribution adding that the professionalism and commercial awareness they bring is much in demand. McLennan himself moved from traditional construction during the 1980s recession and has since worked all over the world: The skills that surveyors develop are very portable to the oil and gas sector, and its a tremendous sector to be in. Although there are many surveyors already working in the industry, the age profile is quite high and he fears an imminent skills shortage.Martin Darley FRICS is another convert

to upstream oil and gas who has never looked back. He started out in the chemical engineering heartland of Stockton-on-Tees in north-east England, but now works in the US as a cost engineering and project services manager for multinational oil company Chevron. Darley agrees that chartered surveyors are uniquely qualified to deliver

UK infrastructure pipeline

JASON HO, MANAGING DIRECTOR, RICS NORTH ASIAThe world will be more urbanised in 20 years time as more people choose to live in cities. By then, China will have over 10 megalopolises, each with a population of more than 10 million. The need for better planned national transport and urban infrastructure to service a burgeoning urban population has never been greater.

Studies also show that long-term, coordinated planning could save the world substantial costs in infrastructure development. Physical infrastructure needs to be efficient, smart, green and creatively weaved into the urban fabric. There also needs to be a step-by-step improvement in soft infrastructure, such as social and community facilities, parks and open spaces to ensure better environmental quality and liveability.

Technology will play an intrinsic part in transport and infrastructure design, especially for global smart cities of the future.

Efficient, smart and green: cities of the future

ASIA


NETWORKS, HELIPORTS AND HIGH-SPEED RAIL, NOT FORGETTING NUCLEAR, COAL, GAS POWER, SOLAR PANELS AND WIND FARMS (PLUS ALL OTHER RENEWABLES) TO FUEL IT ALL. THEN THERES

383bn


Infrastructure projects can be extraordinarily complex, so we need people like chartered surveyors who can understand complexity

Increase in global infrastructure investment required to meet projected GDP growth to 2030

THE THOUSANDS OF KILOMETRES OF MOTORWAY AND OTHER ROADS TO GET PEOPLE FROM A TO B.

60%

MARTIN DARLEY FRICS Chevron

company five years ago, head of commercial services Jonathan Harries MRICS has seen a five-fold increase in the number of chartered surveyors on his 120-strong team, and hopes 50% of them will be chartered within the next two years. Clients are looking for something different, something better, and having those commercial skills at the centre of our offering certainly helps, he suggests. More often than not, theyre looking for chartered surveyors.

Infrastructure is increasingly regarded as not just the result of economic development, but a vital contributing factor while inadequate infrastructure is seen as a significant stumbling block. For example, the Civil Engineering Contractors Association estimated that the UKs GDP could have been 5% higher each year from 2000 to 2010 if its infrastructure had matched that of other leading economies. Supporting the UKs economic

competitiveness was the avowed intention of the National Infrastructure Plan, first published in 2010 and updated yearly. This

the size and complexity of projects in this sector: Infrastructure projects often mean building things where no one has been before, and they can be extraordinarily complex, so we need people like chartered surveyors who can understand complexity. Its that ability to have a very broad perspective. A lot of qualifications tend to deep-dive too soon, but RICS surveyors remain as generalists for much longer. Thats what you need for senior management.Oil and gas is likely to be the scene of

significant investment for some time to come. The International Energy Agency (IEA) forecasts that the world will need to invest $40tn in energy supply and $8tn in energy efficiency by 2035 to compensate for declining sources of energy and to meet rising demand. The IEA expects gas to account for most of this increased investment, with more than $700bn invested in the liquified natural gas (LNG) sector alone.Consultant Rhead Group is working on

two LNG megaprojects in Australia, together worth more than $70bn. Since joining the



Infrastructure

year, it set out a pipeline worth 383bn ($628bn), with greatest investment in energy and transport, but also covering flood defences, communications, water and waste. A primary focus for the UK is improving

the creaking rail network. Although Londons Crossrail project is not due to complete until 2018, a second phase is already in consultation, running between the citys southern and north-eastern suburbs. Meanwhile, as the 43bn ($70.5bn) High Speed 2 project crawls its way through parliament, chancellor George Osborne started courting northern voters in June by calling for a High Speed 3 line to link Manchester and Leeds. Infrastructure is the backbone of

economic growth, and I can only see even more huge projects, predicts Andrew Stevenson, director of transportation for EMEA at Aecom. The challenge for the industry is resource availability finding enough people to meet the requirements.

He believes that surveyors have an important role to play in justifying such a level of investment: Effective commercial management will be increasingly key. Certainty of outcomes is highly persuasive in attracting investment, as well as demonstrating the pivotal role infrastructure plays in economic development.Also crucial to the UKs economic

development is a rather more 21st-century form of connection. David MacDonald MRICS is head of estates and property at communications infrastructure company Arqiva, which is linking isolated rural areas to mobile-phone networks; installing the infrastructure to support energy smart meters; and rolling out a machine-to-machine network in 10 UK cities to create an internet of things devices that communicate with each other to automate daily tasks. Globally, analyst Gartner predicts the number of connected devices will increase 30-fold between 2009 and 2020.

GRAHAM MATTHEWS FRICS, CHAIRMAN, RICS OCEANIAThe development of Auckland airport is probably the largest infrastructure project in New Zealand and will demand the services of a wide range of surveyors, from land measurement to cost control. New Zealand is a fairly small country, but if you extrapolate that demand across the Asia-Pacific region, the opportunities are almost limitless.

Countries such as China, India, Indonesia and Vietnam are developing infrastructure and utilities at a prodigious rate ports, airports, water, roads, rail, energy and sewerage. In India, for example, the population has already passed one billion, but the infrastructure base is still very low. Over the coming decades, that will increase substantially.

In China we are seeing similar growth, thanks to its incredible economic evolution pushing development to levels that are difficult to imagine. For chartered surveyors interested in infrastructure, there cannot be a better time or a wider range of opportunities.

Creating a new world

OCEANIA

AIRPORTS ARE EXPANDING AND ARE KEY TO ECONOMIC GROWTH, SO THE OPPORTUNITIES TO


MacDonald began his career at a very traditional surveying company in Glasgow, before consulting for Vodafone on the rollout of the 2G network in the 1990s. His current job is a world away from where he started, but thats why he enjoys it. The interesting thing is the juxtaposition between the UKs very mature property market and this extraordinarily fast-moving industry. From a technical point of view, a radio planner will want to put a mast in a prominent position, while the local community want it hidden away. The landowner wants to maximise the rent for a particular site, while the operator wants to pay as little as possible. What the chartered surveyor offers is an ability to bring competing interests together and come up with a solution that everyone can buy into.MacDonald echoes the concerns of his

peers regarding a skills shortage his main challenge is finding enough surveyors to keep pace with demand. In the past year, he has taken on 14 surveyors, and although Arqiva has launched a graduate recruitment programme for 2014, it will continue to recruit general practice surveyors as well. He cannot resist a sales pitch: Its an incredibly exciting industry to work in, and its great to think that the work you are doing is contributing in some way to society itself. The trouble for MacDonald is that, right

now, the sector is full of other potential recruiters making exactly the same case.

For more information, go to rics.org/infrastructure. For RICS Infrastructure Information Service, which provides a single point of access to costs, trends and benchmark data, go to rics.org/iis

Infrastructure

22 RICSASIA .ORG

PLAN AND BUILD THEM KEEP ON COMING. FINALLY, THERES THE CHALLENGE OF FINANCING IT ALL, THAT IS WHERE THE EXPERTISE OF PROPERTY PROFESSIONALS WILL BE UTTERLY INDISPENSABLE.


Predicted increase in the number of connected devices 2009-2020

Public-private partnerships will be key for the global infrastructure revolution, but not all markets are taking advantage

Plugging the worlds infrastructure gap is coming to be recognised as two challenges in one: accessing new sources of project finance, while improving value for money so that constrained funding goes further. The public-private partnership (PPP) model is increasingly regarded as a potential solution to both, as discussed in a report commissioned by RICS from Ulster University, entitled The Global Infrastructure Challenge: the role of PPP in a new financial and economic paradigm.

Will PPP pay for our brave new world?FINANCE

The report considers the prospects for PPP in five key markets the US, Canada, UK, India and Australia but the Americas region is particularly interesting. It contains one of the worlds most successful and prolific PPP markets, as well as some markets with the greatest potential.

Paul Hughes FRICS, senior director, cost consulting and project management at Altus Group, was one of the speakers at the Americas launch of the report, held in Washington DC in June. Hughes moved to Toronto in 2005 to work on some of Canadas fledgling PPP projects in the healthcare sector, and has had a front-row seat for its successful adoption throughout the

country. Social infrastructure was the primary focus of PPP, but now it is increasingly used for roads, rail and bridges, and the numbers are getting bigger.

Canadas approach is in stark contrast to that of the US, where the pipeline of PPP projects is a trickle, even though many states have PPP legislation in place. The US could be the worlds biggest market for PPPs, but its going to take some time to get there, says Chris Guthkelch FRICS, project director at Skanska Infrastructure Development, one of several European firms pursuing PPP opportunities there.

So far, the model has been held back by fragmented, fractious local politics, combined with the ability of municipalities to access cheap funding by issuing bonds. But even though municipalities have cheap money, they still have all the risk of designing and delivering the project themselves, says Guthkelch. PPP is really about the transfer of risk from the public to the private sector, and about getting better value for money. Theres a lot of work still required to spread the word about the benefits.

Latin American governments have proved much quicker to seize on PPP to deliver all kinds of infrastructure. Colombia, Latin Americas third-largest economy, has a project pipeline worth $47bn. The country has a long history of private-sector involvement in transport infrastructure, and, in 2012, a new PPP law extended the model to more sectors. Consultant McBains Cooper has been advising the government on PPP deals for roads, hospitals, schools, airports and public buildings. The country is in a unique position, says international director Santiago Klein, thanks to the long- term fiscal policies of its government: There is high economic growth and financial stability, but a lack of infrastructure. The opportunities are enormous.

Download the report at bit.ly/global-infrastructure-challenge


PLAN AND BUILD THEM KEEP ON COMING. FINALLY, THERES THE CHALLENGE OF FINANCING IT ALL, THAT IS WHERE THE EXPERTISE OF PROPERTY PROFESSIONALS WILL BE UTTERLY INDISPENSABLE.

x30


There is measure in all things, goes the RICS motto Est modus in rebus apart from, it appears, how you actually carry out that measurement. At present, measurement standards for property assets can vary dramatically from one global region to the next, making it diffi cult for investors, occupiers and advisers to accurately compare space. Although codes of measurement ensure that professionals,

wherever they practice, are clear about what is included in a survey and what is not, without a common global standard, the property world is not as transparent as it could be. Imagine you are a corporate occupier who needs to fi nd an offi ce for 2,000 people in new territory. You think you have found the right 50,000ft2 (4,645m2) property for your needs. Naturally, you assume that this is all usable space. But what if it is actually 35,000ft2 (3,250m2) of usable space and 15,000ft2 (1,400m2) of stairwells, toilets and car parks? Should this not have been made clearer? It is a huge problem that is fi nally being addressed. Next

month, a consistent set of international property measurement standards (IPMS) will be launched to help reduce risk and bring greater transparency to the industry, with the fi rst standard covering offi ce buildings. Created by a coalition of worldwide property organisations, IPMS is a long-anticipated solution to problems in comparing properties across different markets. It will have implications for the property profession, clients and other built environment organisations.

International property measurement standards (IPMS) are on the way and their use could revolutionise the industry. Hooper

24 RICSASIA .ORG

LANGUAGE FOR A GLOBAL

PROFESSION

A UNIVERSAL

International property measurement standards (IPMS) are on the way and their use could revolutionise the industry. Brendon Hooper reports

LANGUAGE FOR A GLOBAL

PROFESSION

A UNIVERSALA UNIVERSAL

PROFESSION

A UNIVERSAL

MODUS_Asia_Q4.14_P24-27_IPMS.indd 24 07/10/2014 14:36


IPMS

GEORGE HONGCHOY FRICS, CEO, THE LINK MANAGEMENT LIMITED A globally recognised property measurement standard is important to the whole industry. In Hong Kong, there are diff erent standards for commercial space. This has caused many discrepancies in how properties are measured, requiring additional communications and eff orts to avoid misunderstandings and political challenges. IPMS would help clear up misconceptions in the minds of regulators, investors, tenants, the media and the public.

CHRIS FOSSICK FRICS, MANAGING DIRECTOR, SINGAPORE AND SOUTH EAST ASIA, JLLThe introduction of a global benchmark will help signifi cantly in standardising the way valuation is conducted around the world, and is a move in the right direction. The adoption of a more structured approach to measuring buildings will help to address the current lack of transparency in the market, thus boosting confi dence and attracting more investment into the real estate market in Asia.

With the property world becoming increasingly global, differing local and regional standards are inefficient, regardless of their quality, says Sander Scheurwater, Head of External Affairs & EU Liaison for RICS Europe. Research by JLL discovered that, depending on the measurement method used, the fl oor area of a building can differ by as much as 24%. In Spain, for instance, fl oor areas have been found to include outdoor swimming pools, while in parts of the Middle East, the measurement can include the hypothetica l maximum number of floors that could be built on the existing foundations. In India, clients are regularly confused by terms such as built-up area, and super built-up area, so the actual area that they get can end up much lower than what is shown on paper.Inconsistent measuring

codes lead to confusion and can affect both investors and occupiers, explains Max Crofts FRICS, chairman of the IPMS coalition (IPMSC) Standards Setting Committee. Corporate occupiers working globally can even experience deals having to be dropped at a late stage because of them, he says. For example, a local measurement code might include WCs in the carpet area [the actual usable area]. The occupier, having found a suitable site, then has to start a fresh search to obtain the desired net lettable. At the root of the issue is the lack of a universal language.Set up in Washington DC in

May 2013, IPMSC is one of the largest coalitions the industry

VOX POPS

Asia heads give their backing to standards project

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26 RICSASIA .ORG

has ever seen. With RICS a leading member, it involves 44 global professional and not-for-profit organisations working together to produce a set of standards that will ensure property assets are measured in a consistent way. The level of research involved has been staggering the IPMSCs standards setting committee ran a consultation between January and April that elicited more than 100 responses. A second consultation concluded last month, the draft of which is available to read on the IPMSC website. The coalition now plans to launch IPMS in November.Richard Stokes, RICS Head of

Global Corporate Affairs, has been involved from the start. Within less than a year the coalition has gone from conceiving an idea to publishing a first draft of an international standard. We now have a new ethos of working in collaboration to develop a high-level global standard, while making sure chartered surveyors are the best recognised professionals to deliver that standard.But the problem is not just about

data consistency. It is also about professional ethics and a need to improve transparency in the most fundamental aspect of the profession, refl ecting RICS Royal Charter mandate to look after the interests of the public. Having

fragmented measurement standards means that, fundamentally, all property users are affected and potentially losing out, adds Stokes. The situation in Dubai illustrates the current fragmented

approach. Although RICS measurement standard is commonly used, different developers have different standards. Dubais diverse range of property professionals have all brought their own standards of measurement from their home countries and applied them into one city, explains Rob Jackson, Director of RICS Middle East & North Africa. While the rest of the world may struggle with comparing standards in one country with those in another, in Dubai we have the same problem between individual developments and even between adjacent buildings. This is primarily why the Dubai government last year

became the fi rst in the world to endorse and embrace IPMS publicly. It hopes they will provide greater transparency and instil confi dence in prospective investors. Furthermore, the RICS team in Dubai recently signed up

JLL as the fi rst IPMS Partner organisation in the region (box, above). All IPMSC organisations are now approaching prospective partners, who will create the market for IPMS and for RICS measurement guidance.

Sign up to theSign up to theglobal movementglobal movement

IPMS PARTNERSHIP

The IPMS Coalition is seeking IPMS Partners. These are commercial fi rms that wish to signal their support for the initiative by announcing their commitment to adopting and using the standards. The designation is free, and Partner fi rms will be listed on the IPMS website and recognised as leading the way in adopting the new international best practice. Find out more at ipmsc.org/partners.

IPMS HAS BEEN CREATED BY 44 GLOBAL ORGANISATIONS WORKING TOGETHER

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IPMS

For Alan Robertson FRICS, chief executive of Middle East and North Africa at JLL, the benefi ts were clear: By introducing a single recognised methodology, the IPMS will bring consistency and reliability that has not been available to date, and it will lead to greater professionalism in the real estate market.This sentiment is echoed in China, where outbound

investment has been hitting new highs. Besides occupiers, we have seen more and more investors and developers struggling to defi ne the spaces they own, and the true value of properties they have invested in or developed because of inconsistent measurement standards, says Will Chen MRICS, managing director of GoHigh Capital and CDB Commercial Development Fund, Chinas biggest commercial real estate fund. I have no doubt about that China will welcome IPMS, which provides the right solution, for both outbound and inbound investment.And it is clear that the confi dence IPMS will bring works both

ways. When weve talked to investors in Asia, it was evident that when they were looking to move money west, some of the challenges they had to overcome were as basic as understanding exactly what they were investing in, adds Stokes.With consultation on IPMS for offi ces now launched, the 44

coalition organisations must ensure that it is integrated into their own guidance. Consultation for residential IPMS will

RICS guidance on how to implement IPMS for members will launch in early 2015, with training and tools available for members on how to implement the new standards. Once published, RICS members will be encouraged to use the new guidance when measuring offi ces, while measurements of other property types will continue to be undertaken in line with the existing Code of Measuring Practice. RICS Valuers will also need to refl ect IPMS in their valuation reports. Find out more at rics.org/training-events.

MEMBERS ADVICE

Implementing the new standard

commence shortly, and industrial and retai l consultations will follow next year. RICS guidance on the use of IPMS will replace the existing Code of Measurement over time, so professionals should take note: some areas of measurement will change as a result. All surveyors dealing with offices will need to understand IPMS and be able to use its universal language to share consistent information with other surveyors, says Crofts. RICS will be helping members understand what the changes are (box, above).IPMS is a massive step

change for the property world. And with up to 70% of global wealth wrapped up in property, consistent and transparent global standards could also affect financial markets and even whole economies. In the past, some property organisations have thought this issue too big to tackle, says Stokes. RICS has galvanised the international community to lead this project and RICS members can be proud of the positive change IPMS will make.ipmsc.org, @ipmsc

RESEARCH FOUND THAT SOME MEASUREMENTS CAN DIFFER BY AS MUCH AS 24%

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THE XX FACTOR

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Modus meets four women shaking up the industrys reputation for

being a male-dominated closed shopInterviews Roy Ying, Head of Communications and External A airs, North Asia

(RICS)

Careers

As more female professionals than ever forge careers in the surveying industry, the modern workplace in China is changing rapidly. But how far do the perceived

traditional roles of women affect their careers, and are companies doing enough to support equal opportunities? Four distinguished RICS members from four top-tier cities in different regions of Greater China relate their experiences of balancing family life with high-pressure careers in the quantity surveying, commercial property and building services sectors.

1 IRIS LEE MRICS DIRECTOR, RIDER LEVETT BUCKNALL, SHANGHAI

It was my childhood ambition to work in the built environment. I used to watch on television as landslides and fl oods destroyed peoples homes. Living in Hong Kong, I was grateful to the people who built sturdy housing for us, so I wanted to become one of them. Surveying caught my eye at university, and it became my career Im proud to be a consultant as I can be bold and keep my integrity in giving professional advice.As a director of the company,

my typical day at work involves both external and internal matters. Apart from meeting with clients, there are a lot of internal matters to deal with as RLB has grown signifi cantly in recent years to more than 1,800 staff. As a quantity surveying

consultant with a global presence, we serve international businesses as well as local Chinese clients. The biggest challenge working in China is integrating our scope of service with what local clients expect us to provide. The demarcation of work among consultants of various disciplines is blurring, and clients have a tendency to let the most cooperative party do all the coordination work. There is always a question of balance between providing outstanding services and keeping the costs of doing business under control.Sadly, Ive seen some female

staff quit due to the pressure of long working hours. My husband is also a quantity surveyor so he understands what my work is like. I believe support from a spouse is very important to overcome the traditional thinking that women should only take care of family matters. The most acute problem for

working Chinese women is staying at work while pregnant. Also, because of Chinas single-child policy, family members soon-to-be grandparents in particular get very anxious about the health of the pregnant woman. Companies have to be sympathetic and flexible and instigate measures to help pregnant staff. For example, by allowing for flexible working hours, or reducing the amount of business trips or site visits.

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TOWERING ACHIEVEMENT Iris Lee works for Rider Levett Bucknall in Shanghai, where it is quantity surveyor on the Shanghai Tower (left)


30 RICSASIA .ORG

Careers

It is fundamental that companies offer equal working opportunities for women, including, but not restricted to, job interviews, treatment and promotion opportunities. Unfortunately, its not unusual for women to experience a glass ceiling in this industry. I try to gain an advantage by putting an emphasis on accuracy and details in my work, being more creative and proactive, and setting myself higher standards.Im proud of my role here

its professional, highly technical and, I think, irreplaceable. Its wonderful to not only witness this industry growing, but also to join the process to help it become stronger.

3 CAMILLE LO MRICS MANAGER (MAINTENANCE-BUILDING), HONG KONG HOUSING SOCIETY

It was Lego that kindled my interest in buildings. When I was a child, my parents bought the building blocks for my brother and I to play with. Later, I started to look at courses where I could turn my interest into a profession, so I studied surveying at university. In my career Ive worked for

a main contractor, a building consultancy and a client-side organisation. In my present role, my daily challenges involve planning and monitoring the improvement programme for Hong Kongs public rental

MRICS

2002 (Cushman & Wakefi eld) (CCRECI) 1949 9

MRICS

LegoLego

2 SUNNY ZHANG MRICS GENERAL MANAGER, INSITE CORPORATE RESEARCH CENTER, BEIJING

My big opportunity to work in the commercial real estate industry came from getting an internship at Cushman & Wakefield in 2002, when the industry in China was relatively small compared with developed markets. At INSITE I focus on market research, but I also work on advisory reports such as feasibility studies, market due diligence, investment advisory, site selection, occupier strategic solutions and valuations. Im really pleased with the success of our recent project, the China Commercial Real Estate Confidence Index (CCRECI) Report. Its the first time a confidence index system for commercial real estate has been established in China. In Asia, its traditional to

think women should be at home caring for the family while men work. I think this attitude is more common in Korea and Japan, as in China women have been encouraged to work since 1949. Still, its generally felt that family should come fi rst for a woman, so its essential for us to have support from families when trying to balance life and work. My baby was born in September and my family, especially my husband, is very supportive. Its important to be with them at weekends and to take the time to relax during holidays.

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[email protected]

estates and old buildings. I also provide technical guidance, advice and building design. As a not-for-profi t organisation, the biggest challenge is to manage costs while delivering high-quality, sustainable solutions. A big part of the challenge for

a woman in the industry can be the physical environment. A construction site can be harsh, dirty and unsafe, and at times they require a great deal of strength and stamina to navigate around. There is also pressure to uphold a tougher persona and not convey emotions too readily, for fear of being seen as weak. But women can have excellent soft skills, such as effective communication and problem management, which are crucial in determining the success of projects. Whenever I encounter difficulties, I explore all the possibilities to reposition myself. My passion for this industry keeps me going. We are fortunate that Hong

Kong is able to attract talent from diverse backgrounds. The construction industry is undeniably still perceived as a male profession, yet, in the years I have been working, Ive seen an increasing number of women joining our fi eld. I believe that the male-dominated perception will gradually change over time.There is a particularly high

demand for professionals on new infrastructure projects right now, and the private sector and professional bodies should do more to emphasise that property and construction requires a range of skills, irrespective of a persons gender.

4 ANNIE CHEN MRICS SPECIALIST, CATHAY LIFE INSURANCE CO. LTD, TAIWAN

I used to work in the banking sector, dealing mainly with repetitive tasks. Tired of the same daily routine, I decided to change jobs to surveying, as I knew real estate was a dynamic industry in which interesting changes are taking place every

day. I now work in the real estate investment department of an insurance company, and my responsibilities include looking for potential investment properties and assessing their suitability. I also act on the companys behalf in purchasing or developing real estate.Compared with other

professions, working in real estate can sometimes be hazardous. For example, you may need to go to remote locations to conduct a survey or carry out a construction site inspection. Therefore, its seen as a profession more suitable for men than women. But this is really only a stereotype. The truth is, as mode

RICS Modus, Asia edition – Q4, 2014

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