MODUS Asia Edition | Q4 2017 by ROF Media

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Contents MODUS ASIA Q4 2017 RICS.ORG/MODUS

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07-09 NEWS IN BRIEF Industry news, advice and information for RICS professionals 08 THINKING: CHRISTINA TAN Keppel Capital’s CEO considers the risk profiles in some of Asia’s biggest commercial real estate sectors 11 PRESIDENT’S COLUMN Amanda Clack FRICS reflects on 17 months in which infrastructure, cities and diversity have become big themes both inside and beyond the profession

Features

Intelligence

S MAGAZ

06 DIFFERENCE OF OPINION Who’s the star performer in Asia’s real estate market: India or Indonesia? We hear two points of view

14 COVER STORY We debate the future role of the profession; consider the surveying jobs of tomorrow; and ask how the industry can attract Asia’s brightest and best talent 26 IS CO-LIVING WORKING? Shared living: a radical solution to the housing shortage, or simply a wealthy millennials’ playhouse? 30 FLYING STARTS If you thought building an airport was complicated, try funding one 38 LIES OF THE LAND How RICS professionals are improving the lives of millions around the world who still have no security of tenure

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NATALIE COHEN MRICS, HERRON TODD WHITE COVER STORY, P14

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AGA ensure the integrity MAGA question Sand S Mto “As professionals, we must probe Z Z DU DU of the advice we give. That is our point of difference as chartered surveyors, and no single technological solution can replace that”

44-45 CAREERS Quit your job without burning your bridges; Knight Frank Cambodia’s Ross Wheble MRICS 46 BUSINESS Set your search engine marketing strategy 47 LEGAL 101 In Hong Kong it’s just become a lot easier – and cheaper – to say you’re sorry 48 PROFESSIONAL DEVELOPMENT Leadership in infrastructure management 50 MIND MAP Cushman & Wakefield’s Sigrid Zialcita discusses fintech’s influence on real estate PLUS 49 Events

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.

Q4 2017_MODUS A SI A

Hong Kong

Call for entries

Awards presentation ceremony Date: Friday 23 March 2018 Time: 18:30 till late Venue: Grand ballroom Grand Hyatt Hong Kong, 1 Harbour Road, Wanchai, Hong Kong

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Feedback 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

CONSCIENTIOUS REFLECTION Sir, The article “False Friends” (Cover story, p18, Modus Asia, Q3 2017) was interesting but failed to identify the key reason for the failures that lead apparently decent people to do terrible things. The root of the problem is spiritual. Every human being is capable of doing terrible things, whether in business or elsewhere. “There, but for the grace of God go I”, is a truth that could easily be written over all our lives when observing other people’s failures. Today, society has few, if any, moral absolutes. Even our own consciences can become dulled to the reality of what is right or wrong. Until there is a spiritual change in our individual, corporate and national lives, such incidents will continue to occur with increasing frequency. Ernest Bayton FRICS FALSE FLAGS Sir, False Friends shone a light on unethical corporate behaviour. But it made no mention of the elephant in the room. Namely, the largely undemocratic political construct of questionable integrity known as the EU, which has been allowed to misbehave exactly as it wishes for far too long – until recently, of course. It’s shameful that in a democracy like the UK, the only way some of us could get our voices heard was to down tools and actively fight the EU on the beaches of the 2016 referendum. I now hope that RICS plays its part in ensuring that, in terms of legislation that affects the built environment, whatever comes after Brexit is fair, inclusive and non-divisive, and that no one is left isolated and let down by society. Graham Stow FRICS, Stow Associates, Wiltshire, UK

Join the debate If you have any comments on any of the stories on Modus Asia, the editorial board welcomes you to send them in – in Chinese or English. We will publish them in their original format with an English translation. Get in touch at editor@ricsmodus.com 如对亚洲版 Modus 的内容有任何回应，欢迎以中文或英文电邮至编辑委员会。阁下之意见将以原文（辅以英译本）刊登。电邮地址为 editor@ricsmodus.com。

@RICSnews // #RICSmodus @hjscores29 @RICSnews enrolled with RICS recently and had my first issue of Modus. I really enjoyed it! Look forward to the next one #modus #RICS @MRICSnewmum Disappointing

#GenderPayGap still exists - I’m 4K worse off than my average male counterpart #RICSmodus

IMAGE PROBLEM Sir, I’ve only just noticed that the image at the top of the Secret Surveyor is of a conventional male. Surely it’s pointless publishing articles trumpeting how RICS promotes women in the profession when you can’t even ensure the images in Modus are in line with this message? Bairbre McKendrick MRICS Thanks for your letter. Eagle-eyed readers might have noticed that, when we receive a submission from a female Secret Surveyor, we change the illustration to that of a woman.

TIMELY INTERVENTION Sir, Having read Mr Griffin’s letter (Coming up short, p5, Modus Asia, Q3 2017), I must disagree with his view. In my opinion, one hour of informal CPD is a reasonable grant for having read Modus. I consider the time, among other resources, that a writer would have put into an article, which not only reinforces his/her knowledge, but that of the reader’s as well. These articles might also encourage readers to conduct further studies into issues raised. What about the main article: “What makes good people do bad things?” The underlying lesson here is that one must always be aware of actions that could jeopardise our adherence to professional standards and ethics. It seems to me that RICS understands the contribution the magazine makes to surveying professionals, as evidenced by the one-hour informal CPD allocation. David Bally MRICS, associate director, Raymond & Pierre, Trinidad & Tobago

MODUS ONLINE

Read the latest and all previous issues of Modus Asia at rics.org/modus. To unsubscribe your hard copy and receive a digital edition only, email your name and/or membership number to ricseastasia@rics.org with the subject line “Unsubscribe Modus Asia”.

FOR SUNDAY Editor Oliver Parsons / Art Director Sam Walker / Deputy Editor Andy Plowman / Contributing Editor Alex Frew McMillan / Junior Designer Katie Wilkinson / Creative Director Matt Beaven / Account Director Karen Jenner / Advertisement Sales Director Emma Kennedy / Asia Advertising ROF Media, Bryan Chan, +852 3150 8912, bryan@rofmedia.com / Production Manager Michael Wood / Managing Director Toby Smeeton / Repro F1 Colour / Printers ROF Media / Cover Image Tommy Parker / Published by Sunday, 207 Union Street, London SE1 0LN wearesunday.com / For RICS James Murphy and Kate Symons [UK] / Le-Anne Lim and Jeanie Chan [Asia]

Q4 2017_MODUS A SI A

Intelligence

News / Reviews / Opinions / Reactions

DIFFERENCE OF OPINION

India and Indonesia have stolen the property investment limelight lately. Which is the star performer? Discuss.

real estate has been late to the party For ForeiGn and local investment in Indonesia. There is one sovereign wealth fund active here, GIC, and several regional developers, but we haven’t got overseas institutional investors. Regardless, my view is that Indonesia’s potential is greater than India’s. There are fewer restrictions in Indonesia: any foreign commercial investor can invest in any sector. The only restriction is on individuals, who can’t invest unless they are residents. There’s also less risk and more certainty around capital protection. In south-east Asia, generally, you can move your money in and out. In China, you can’t. In India, you can, but it’s very difficult. SUBHASH BEDI CHAIRMAN AND MANAGING DIRECTOR, There’s a proven track record of entry and exit for regional RISING STRAITS CAPITAL, NEW DELHI, INDIA developers. Hongkong Land has had exposure in Jakarta since 1989. Keppel has been involved since the early 1990s, it’s been more than a decade since the real estate sector Kajima since the mid-1990s. They’ve all been pretty opened to foreign investment in India. The learning process successful at making money, and have a good, long-term has helped identify the gaps that made India a less-than-ideal investmenttrack record of exits as well. market, and this current phase makes Indian real estate one of the leading Logistics in Indonesia is a nascent sector that is growing destinations in Asia. There are several reasons why. very quickly. E-commerce is really hitting the big time, which First: strong fundamentals. India is a high-growth market, with increasing is fuelling demand for efficient, well-located warehousing urbanisation and a growing middle class, leading to demand for housing. and foreign investors are starting to take advantage. The government has added a safety net in terms of a stable currency, and Industrial developer Logos is buying land to develop modern has invested in infrastructure, which provides additional impetus for growth. warehousing for e-commerce third-party logistics. Inflation is also at a historic low. New regulations such as the Real Estate Overseas operators have the relationships with clients in (Regulation and Development) Act protect consumers, while changes to the more-mature markets – Amazon in the US, Alibaba and “SARFAESI”securitisation act and the Bankruptcy Code protect lenders and Lazada here in Asia. They’re quite comfortable to bring that investors. Key policy initiatives such as the “Make in India” scheme, the relationship to Indonesia. There are local players, but the relaxation of foreign-direct investment in many sectors, tax reforms and the foreign businesses have opportunities as well. sales tax help push Modi’s growth agenda. Office trends are mainly driven by IT, finance and research and development. Those industries should grow at a rate of 8%-10% over the next decade, Indian summer or hot Indonesia? leading to demand for more space. Rents are increasing, and vacancies in the Join the debate at rics.org/linkedin, top six cities have come down to 5%-7%. Investment from overseas totals or email editor@ricsmodus.com more than $12bn over the last five years. That has helped establish a market for selling grade A offices. With REIT regulation improving, REIT listings will provide another avenue for investors in office assets. It all helps put India on the global map for investors. 06

RICS.ORG/MODUS

INTERVIEW ALEX FREW MCMILLAN ILLUSTRATION MICHAEL DRIVER

TODD LAUCHLAN FRICS COUNTRY HEAD, JLL INDONESIA

10.1%

Intelligence

$97 UP, UP AND AWAY Office rents in Australian skyscrapers see fastest global rise Source: Knight Frank, 2017

0.6% Growth in six months to Q4 2016 Rent/ft2

$303

HONG KONG

0.6%

$159 NEW YORK (MANHATTAN)

1.1%

3.4% 0%

$134 $113 TOKYO

$61

$77 -2 %

$105

SAN LONDON SYDNEY FRANCISCO (CITY)

BOSTON

$68

SHANGHAI

-4%

CHICAGO

$64

SINGAPORE

NEWS IN BRIEF

JAPAN ®

DAI-ICHI LIFE LOOKS OVERSEAS FOR FIRST TIME SINCE BURST OF BUBBLE

rics.org/modus

INFOGRAPHICS IAN DUTNALL; IMAGE DAI-ICHI LIFE

Celebrate 150 years of RICS: your chance to get involved Next year marks the 150th anniversary of RICS. To celebrate this milestone, there will be two exciting campaigns in which professionals, members and the wider industry can take part. “Pride in the Profession: celebrating 150 years of surveying successes” looks at the 150 years of positive impact surveyors have made to society. We need you to help us showcase great examples by nominating the people and the projects that have inspired you and illustrate the impact that surveying has on the world around us. If you wish to share an example of outstanding surveying work, please visit rics.org/150 to take part. “Cities for our Future” is a global competition run by RICS, designed to find solutions to the most pressing issues facing the world’s rapidly expanding cities. With global urban populations predicted to grow by more than 2.5 billion by 2050, rapid urbanisation presents one of the defining challenges of our time; putting unprecedented levels of strain on property, construction, infrastructure and land use. Through this competition RICS will challenge students in the fields of surveying, architecture, design and engineering – among others – to find innovative solutions to the problems facing many cities. The competition will be judged by some of the leading names from our industry and beyond, and the best idea will be awarded a cash prize. RICS is inviting members globally to mentor the entrants that feature in next year’s competition shortlist. To register your interest, email 150@rics.org.

INJECTION OF FUNDS Ikitelli City Hospital in Istanbul has received $90m in project finance from Dai-Ichi Life

The Japanese institutional investor Dai-Ichi Life Insurance is looking at overseas property as an asset class for the first time since the bursting of Japan’s bubble in the late 1980s. The interest of the listed insurer is part of a broader push by Japanese institutions that, thanks to poor investment yields at home, have rediscovered an appetite for modest risk in the form of overseas real estate. Dai-Ichi Life was due to invest this year via a fund of funds into a commercial portfolio of 500 properties across Europe, reports the Nikkei business newspaper. It will step up its international investment next fiscal year,

LINKING Why are we getting the basics wrong when it comes to preparing documents? STARTED BY Sue Willcock, author of Help, I’m A Manager! A Practical Guide to Success as a First Time Manager in Professional Services

I think time is the problem or rather the lack of it and our ability to decide on what is important and prioritise so that we do find the right amount of time. Continuity of thought and attention to detail is the casualty as a result. David Hunter

commencing March 2018, too, the Nikkei stated. That will take the form of investment in other developed markets such as Australia and the US. Europe is particularly attractive for the initial investment, due to lower currency-hedge costs. The insurer built up a ¥600bn ($5.4bn) international property portfolio in the 1980s, but like most Japanese large investors, had to offload its holdings when Japan’s economy imploded at the end of that decade. It sold off its last foreign property in 2001. Dai-Ichi Life in July provided ¥10bn ($90m) to finance the construction and operation of a 2,700-bed hospital in Istanbul, Turkey. This is the first time it has invested in a new-build property via project finance. The insurer sees the investment as socially responsible, as it seeks to back medical facilities in emerging nations. The sogo shosha conglomerate Sojitz will build the $1.8bn hospital’s infrastructure, while the Japan Bank for International Cooperation will also provide direct financing.

REVIEWING THE LATEST DISCUSSION POINTS AT RICS.ORG/LINKEDIN Many of us share your view, and are trying to rectify this problem, as it reflects badly on the QS profession overall. However, it needs the profession collectively to pull their socks up, and we haven’t quite figured out how/don’t want to collaborate. Louise Vlatko FRICS There were no IT-based systems when I started working. Hand crafting

everything taught you to produce clear and concise information that was correct first time simply because it took so long to make any amendments. Technology has made us all lazy. Gavin Edwards This is a training issue. Software is only as good as the information put into it. Nicholas Sunderland MRICS Q4 2017_MODUS A SI A

“Operating in Asia’s real estate markets exposes you to a multitude of disruptors. The risks right now are game-changing”

he real-estate industry is now experiencing a “new normal” as millennials, Generation X and Baby Boomers converge at a time when technology is disrupting the way property is used. The risks right now are game-changing. One of the current top risks for investors is an environment of very low interest rates. That has resulted in high liquidity and inflated valuations that diverge from rental trends. To manage the risk, we are avoiding excessive borrowing, and seeking to ensure good cashflow from our investments. Operating in Asia’s real estate markets exposes you to a multitude of disruptors, such as the growth in e-commerce, the demand for better work-life balance, the shared economy, and open-office layouts. We have tried to embrace the first of these through our management of shopping malls. In Life Hub@ Jinqiao, a Shanghai mall from which one of our funds has since divested, we changed the tenant mix to focus on experiential offerings such as entertainment, dining and education. We also introduced an app for the mall and brought in Alibaba’s first Hema supermarket, which integrates online and offline grocery shopping. The fresh market sells live fish and fresh vegetables, and delivers within 3km of the mall. People who visit the mall can also buy this fresh produce and take it to the restaurants in the outlet to cook. In response to the growth of retailers offering clickand-collect services, we have opened a courier-reception service. An office receptionist is not going to help you collect the package you ordered online, nor will condominium management accept deliveries that could

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be perishable. However, it is quite easy for people to drop into the mall after work to collect something there. Opening the pick-up point has helped increase footfall by 5%-10%, and it helps bring people to the shops and restaurants. Of course, one of the biggest current external risks is the region’s increasingly volatile, uncertain and ambiguous geopolitics. In response to the ongoing North Korean nuclear crisis, we monitor how markets and investors are responding in South Korea, while getting feedback on geopolitics from our local team. Seoul is a size you can’t ignore and the city is doing well economically. It’s also a market that offers much better yields and pricing: average grade An office property is about $1,000/ft2, whereas it’s more than $1,600 in Singapore, and much higher again in Hong Kong and Tokyo. If you are looking for good-value property, it’s a good place to start. The large chaebol such as Samsung are generating strong profits. These are forces you can’t ignore. Therefore, we are quite comfortable having buildings in South Korea. A Best Western hotel near Incheon International Airport previously owned by one of our funds delivered a cash yield of 14%, before we sold it to return capital to investors. There are bound to be issues that are a bit more difficult to resolve. First, there is timeline risk because with funds you have a limited lifespan. Our funds normally run for eight to 10 years. This seems sufficient time to wait through certain cycles. But sometimes you have to explore the cost of holding the property. Once, we had a very small retail asset on one of the more popular shopping streets in Tokyo. The whole building was so old and crumbly. You would think the tenant would want a new, fresh building. But it was worried it might lose customers on a busy street while the store was closed for redevelopment. This repositioning was a bit harder. Fortunately, the business was doing well, so we sold with the tenant in situ, even though our original plan was to build a new development. WHAT ARE THE BIGGEST RISKS in Asian real estate? Email editor@ricsmodus.com

ILLUSTRATION ANDREA MANZATI

CHRISTINA TAN CEO, KEPPEL CAPITAL, SINGAPORE

Intelligence

NEWS IN BRIEF

WE LIKE

rics.org/modus

RICS launches real estate investment risk report Diminishing returns are having a impact on diversification and risk throughout the global real estate investment sector, according to a new report by RICS’ Real Estate Investment Risk Forum (IRF). A decade after the global financial crisis, new research shows that while investors believe risk management has improved, more than half acknowledge a drift away from traditional investment and into alternative assets such as senior living and student accommodation. Involving more than 40 of the world’s most influential real estate investors, representing more than $1tn in assets, the IRF is now challenging industry to ensure lessons of the past are not forgotten in the rush to deploy growing volumes of capital. The report will inform the debate at RICS World Built Environment Summit (see below). Register now for World Built Environment Forum Summit The third RICS World Built Environment Forum Summit will take place in London on 23-24 April 2018. Focusing on the theme of “Our Changing World – Urbanisation, Innovation and Civilisation”, 1,000 professionals from across the built environment sectors will convene to discuss the impact of digitalisation on business models and the consequences for cities and the regions around them An agenda-setting speaker line-up will discuss trends such as: urbanisation and resource security; artificial intelligence, blockchain and cyber security; and macro-economic issues such as financial stability and protectionism. To read thought-leading articles on the conference’s themes, explore the summit programme and to register for the event, visit rics.org/wbef.

GIMME FIVE Sweden’s comparatively high divorce rate has led to a lot of single parents, who struggle to find apartments flexible enough for their needs

The 5:1 Dream Apartment What’s that? A new model for a flexible apartment in which room layouts can be easily adapted to suit the changing needs of a family. Commissioned by Swedish housing corporation Stångåstaden and designed by White Arkitekter, the 5:1 Dream Apartment aims to fill the gap in the demand for a more flexible form of housing. Sweden’s comparatively high divorce rate means that children commonly grow up with separated parents, despite many homes still being built with the “nuclear family” in mind. This does not take into account the changing needs of single-parent households, which will have varying requirements for living space at different times. How does it work? By adjusting moveable interior walls, the apartments can convert from a one-room studio to five-room home. Smart space-saving ideas are also key to the design, such as beds that can be stored in the walls or the ceiling, or a bathtub that can be hidden under the floor. Ideal for single parents who take turns looking after their children, the designers believe the concept could also help alleviate the risk of psychological problems that can occur when children grow up in overcrowded living spaces. What’s next? This autumn, Stångåstaden will begin a trial of the adaptable apartments with renters for a year. “The Dream Apartment offers a flexible home that residents themselves can adapt according to the different stages in their lives,” says Fredrik Törnqvist, Stångåstaden’s managing director. “I hope that more housing corporations will be inspired by this new trend and build to meet today’s needs.” WATCH A VR PRESENTATION of the concept at bit.ly/5in1apartment

ON RECORD

WHO’S SAID WHAT… AND WHY THEY’VE SAID IT

There’s really no such thing as a ghost city. It’s just a phase of development

Zealandia would probably have been recognised as a continent long ago

WADE SHEPARD reporter and author

NICK MORTIMER, geologist, GNS Science, Dunedin, New Zealand

Four years ago, the new city of Lanzhou New Area in western China was a ghost town, almost empty of residents. Following the government’s “Go West” initiative, it is now filling up.

New geophysical data suggests that a region spanning 5m km2, which includes New Zealand and New Caledonia, is a single piece of continental crust, geologically separate from Australia. Q4 2017_MODUS A SI A

WINDOW INTO SEOUL IS A LOTTE TO TAKE IN Step on to the world’s highest glassfloored observation deck, 468 metres above Seoul, on the 118th floor of the recently completed 123-storey Lotte World Tower. The 45mm-thick glass floor can support 500kg/m2, and with three of the deck’s walls also made of glass, it’s as close as you can get to flying above the Korean capital without actually boarding a plane. On clear days, visitors can see as far as the Yellow Sea. Meanwhile, access is gained by another world-record holder – the world’s fastest double-deck elevator, travelling at 10 metres per second up the world’s longest lift shaft.

10 RICS.ORG/MODUS

Intelligence DIFFERENT CLASS

2015

2030

By 2030, Asia-Pacific will be home to 65% of the global middle class, while Europe and North America will represent 21% of the total Source: Brookings Institution, 2017

6% 5%

65%

46% ASIA PACIFIC

24%

14%

EUROPE

11% 7% NORTH AMERICA

9% 6% CENTRAL & SOUTH AMERICA

MIDDLE EAST & NORTH AFRICA

4% 4% SUB SAHARAN AFRICA

INVESTMENT

ILLUSTRATION BERND SCHIFFERDECKER IMAGES TIM GRIFFITH, COURTESY OF KOHN PEDERSEN FOX ASSOCIATES, GETTY

FUNDS MAKE PASSAGE TO INDIA FROM INDONESIA The Singaporean sovereign wealth fund, GIC, has invested $1.9bn in the rental-property business of DLF, India’s largest builder by market value. The investment is one of the largest-ever property transactions in India from an overseas buyer. GIC joins the warehouse developer Logos in expanding its Asia interest into India, after earlier also investing in Indonesia, another destination newly attracting attention. The Singapore fund is taking a one-third stake in DLF Cyber City, which has three schemes in Delhi, Chennai and Hyderbad and the potential to develop another 316.5m ft2 (29.4m m2) of real estate. DLF retains the remaining two-thirds in its subsidiary. GIC’s investment will, in part, help DLF handle its $4bn debt load, and the deal builds on an earlier $300m investment in a 50-50 joint venture that GIC set up with DLF in 2015. Sydney-based Logos has established a partnership, Logos India, with the Indian developer Assetz Property Group. The Mumbai-based joint venture is looking to raise $400m in investment to develop modern warehouses in India’s key shipment centres: Mumbai, Pune, Chennai, New Delhi, Bangalore, Hyderabad and Ahmedabad. Logos’s move into India mirrors its decision to follow GIC into the Indonesian market. In March it became the first branded warehouse operator to set up an operation in the country. Canada’s largest pension funds, the Canada Pension Plan Investment Board and Ivanhoé Cambridge, have provided $400m in funding for Logos to develop warehouse space in greater Jakarta.

INITIAL DECISION GIC has taken a $1.9bn stake in DLF’s Cybercity arm, whose first project is in Gurgaon, south of Delhi

“It has been a real honour to represent our profession” AMANDA CLACK FRICS RICS PRESIDENT CAPTURING THE ZEITGEIST The outgoing President reflects on how her themes of infrastructure, cities and diversity have risen up the worldwide agenda

Unusually, by the time I hand over the presidency, I will have been in office for nearly 17 months. This has been an incredible period of my life, and it has been a real honour to represent our profession around the world, working with our fabulous staff teams. My term of office commenced on the 27 June 2016, as the UK voted to leave the EU, and I could not help but wonder what the year ahead would hold. What has ensued is a series of world events that confirms the uncertain and changing times in which we live. Complacency is not for the faint-hearted, and the unexpected is not necessarily good for investors who, in the world of land, construction, infrastructure and property, prefer more certainty. My themes this year have proved incredibly pertinent against this backdrop. We have developed a strong strategy and presence for RICS in the infrastructure sector, with commercial management and cost engineering at its heart. We published a report for the North American continent on infrastructure management, and I am busy writing up a summary of the roundtables that we held around the world on the subject. Meanwhile, China’s One Belt, One Road strategy featured as the backdrop to our World Built Environment Forum annual summit in Shanghai. As the concepts of the smart city, resilience and densification continue to rise up the agenda, our focus on cities has also been key. Tackling the war for talent has put diversity and inclusion at the forefront of employers’ concerns in attracting the next generation of surveyors. I have loved meeting our talented professionals, from the RICS Young Surveyor of the Year and Women of the Future awards, to our international Twitter Q&A about the future of the workforce in five years. Plus, I have co-authored the CEO’s Guide to Diversity and Inclusion for Real Estate with my RICS colleagues Judith Gabler and Maarten Vermeulen. As RICS celebrates its 150th anniversary next year, our profession is well placed for an exciting future. My thanks go to my firm, EY, for its support during my extended presidency, and congratulations to John Hughes FRICS, founding partner of Hemson Consulting in Toronto, who becomes our 136th President. I wish him every success in this incredible role. Follow Amanda on Twitter @amanda_clack

Q4 2017_MODUS A SI A 11

Upcoming Upcoming activities activities in in 2017-2018 2017-2018 Hong Kong Hong Kong • • • • • • • • • • • • • • • •

APC blended course in QS & construction: 12 Nov APC blended course in QS & construction: 12 Nov Technical visit to the Greater Bay Area in China: 17–19 Nov Technical visit to the Greater Bay Area in China: 17–19 Nov Conduct rules, ethics & professional practice: 25 Nov Conduct rules, ethics & professional practice: 25 Nov Business Valuation Conference 2017: 1 Dec Business Valuation Conference 2017: 1 Dec Property valuation for non-valuers: 2 Dec Property valuation for non-valuers: 2 Dec APC final assessment interview: Jan 2018 APC final assessment interview: Jan 2018 Facilitative mediation module 1 & 2: Jan 2018 Facilitative mediation module 1 & 2: Jan 2018 Annual Dinner and Awards Presentation Ceremony: 23 Mar Annual 2018 Dinner and Awards Presentation Ceremony: 23 Mar 2018 • Annual Conference: 18 May 2018 • Annual Conference: 18 May 2018 Taiwan Taiwan • APC final assessment: 25 Nov • APC final assessment: 25 Nov • APC final assessment: 26 May 2018 • APC final assessment: 26 May 2018 Japan Japan • Annual Dinner: 26 Mar 2018 • Annual Dinner: 26 Mar 2018

Find Find out out more more at at rics.org/events rics.org/events 12

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Intelligence

NUMBER CRUNCH THE E-COMMERCE BOOM HAS LEFT THE US WITH SURPLUS OF RETAIL SPACE – NOT AN ISSUE FOR DEVELOPING NATIONS (M2/1,000 PEOPLE ) Source: Credit Suisse, 2017

PHILIPPINES INDIA CHINA

SECRET SURVEYOR

“I’m not unduly worried about automation. Unless they make a robot that can handle steps”

ack when I started out, the only problems with houses were damp, woodworm and subsidence. Several years later, the world is a more complex place, but I’m still just as enthusiastic about my job, and I’m embracing change. In the coming weeks I’ll be out and about, armed with what is fast becoming standard equipment: a tablet-based inspection and report production system. It has a good logical approach to surveys and valuations, and has enough common sense built in to at least make every report customised and specific to the prospective purchase, rather than a series of non-committal sentences that could be produced by a robot. On the subject of robots, I ran the role of “chartered surveyor” through one of those questionnaires about whether the job could be automated. Unfortunately it could, but only in such activities as the dreaded automated valuation model. This algorithm-based opinion of value has been around for some time now and is always cited as a threat to our profession. I am not unduly worried, though, unless the technology evolves to such a point that a robot surveyor can drive (or fly) out to a property, easily manage the doorstep and then, after the ground floor inspection, demonstrate an ability to climb stairs and elevate itself into the roofspace. At a recent (mandatory) conference for my specialism, we were told pretty bluntly that the merit of our profession was as a better calibre of data gatherers, and that we’d need to adapt to survive against this wave of automation. So I’m really just a number cruncher? It’s not something that I originally signed up for, but I guess I’ll “go with the flow”, as they say. Or should it be that other cliché, “grin and bear it”? ARE YOU INTERESTED in writing a future Secret Surveyor column? Send your musings on the profession to editor@ricsmodus.com

ARGENTINA COLOMBIA

BRAZIL

PERU

MEXICO

92 TURKEY

121

181

228

RUSSIA

GERMANY

I TA LY

113

413 SPAIN

NETHERLANDS

245

362

FINLAND

926

434

NORWAY

SWEDEN

2,000 USA

The US has more retail space than any other country in the world, but following the effects of the global financial crisis, it now seems it has too much. In 2017, major US retail chains from Macy’s to American Apparel announced store closures, indicating an oversaturation of retail space,

and there have been nine large retail company bankruptcies – as many as there were for the whole of 2016. So what is going on? Several trends are changing the nature of American shopping, including the rise of e-commerce, the oversupply of malls, and an increase in spending on dining out and on “experiences”. Q4 2017_MODUS A SI A

Xxxxxxxxx

ME E T T HE …

DRONE-FLYING BIM-USING FORWARD-THINKING USER-EXPERIENCING DOG-WALKING AR-DWELLING BLOCKCHAINING CONTINUALLY TRAINING SCENARIO-DESIGNING WAX JACKET-WEARING VALUE-ADDING DATA-WRANGLING CHANGE-EMBRACING … S UR V E Y OR OF T HE F U T UR E

RICS.ORG/MODUS

Skills

Words Andrew Brister

Illustrations Tommy Parker

R E C OG NISE Y OUR SE L F IN T HE R E?

Q4 2017_MODUS A SI A

Skills

nowing the future is impossible. But, with technology up-ending old ways of doing things, and emerging economies shaping up to be dominant forces by the middle of the century, there is one thing we can be sure of: change is coming. What will this mean for professions such as surveying? We asked a panel of experts from across the world for their viewpoints.

AROUND THE TABLE Natalie Cohen MRICS National manager, commercial, Herron Todd White (Australia), Brisbane James Dearsley Founder, PropTechConsult, London Kath Fontana FRICS Managing director, ISS Technical Services, London Prof KT Ravindran FRICS Dean Emeritus, RICS School of Built Environment, Amity University, Noida, India Erland Rendall MRICS Director and owner, Atorus Consult, Durham, UK 16

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What are the skills and attributes that will make professionals successful in the future?

Kath Fontana: Apart from technical skills and experience, successful professionals will continue to require skills centred on the “three Cs”: commercial, communication and collaboration. The professional will always need strong negotiation skills, be able to spot risk and opportunity and have well-honed analytical abilities. Good communication – verbal and non-verbal – will be crucial as the working environment evolves to accommodate a diverse workforce spanning five generations.

KT Ravindran: Fundamental to any profession is technical competence in the subject, and the skills to adapt quickly to changing technological applications. The space for the maverick professional is shrinking and the ability to work in teams will be imperative. An aptitude for innovation will also be crucial. James Dearsley: Two things will be more important than anything else: a willingness to be flexible and agile in the work you’re undertaking, and the place you are working in physically. Our openness to change is a key attribute for the work we do and for our employers. Our jobs are likely to be more transient, more virtual and more varied. Natalie Cohen: As the latest innovations change the way we work, it will become increasingly important to allow technology to do the heavy lifting, in turn freeing us up to provide professional judgement, risk identification and solutions. Embracing change is paramount. Collaboration is how we get there, making sense of change, new ways of working and new ways of doing business: in essence, coming out of our silos. KF: This is key. Working in silos can no longer guarantee success. The professional of the future will be a strong collaborator. Erland Rendall: We all agree that for professionals to be successful, they must be good communicators across myriad platforms. They must also be comfortable with data, having mastery of information capture, distillation, interrogation and dissemination. They will need to deploy technology appropriately, dealing with the cultural challenges of the advent of smart technology. Finally, they must diversify, providing a suite of specialist services and products aligned to the market. Which skills will we no longer be as reliant on?

JD: In the shorter term, there will be many more automated workflows coming into business; largely manual, repetitive tasks will become a thing of the past. Gartner predicts that 16% of all US jobs will be eliminated by 2025 due to technologies such as robotics, artificial intelligence and automation. Moving further ahead, there is the risk of near or almost complete automation. It is highly skilled workforces that will have the best chance of taking advantage of the shift, but this requires great understanding of the change and a willingness to move with the times. KTR: No professional skill can be expected to become completely redundant in the future. Skills will grow in their complexity and »

Skills

Continuing professional development

UK/IRELAND

EUROPE, MIDDLE EAST AND AFRICA

ASIA-PACIFIC

2015 - 2016

What specialisms are new surveyors qualifying in, where in the world are they coming from, and how have things changed in the past eight years? We compared annual intakes for the 10 largest segments.

QUANTITY SURVEYING & CONSTRUCTION 1,328

AMERICAS

2007 - 2008

COMMERCIAL PROPERTY 996

COMMERCIAL PROPERTY 998

VALUATION 627

QUANTITY SURVEYING & CONSTRUCTION 531

PROJECT MANAGEMENT 374

BUILDING SURVEYING 373 VALUATION 422

RESIDENTIAL 371

BUILDING SURVEYING 292

PLANNING & DEVELOPMENT 154

INFOGRAPHIC IAN DUTNALL

PROJECT MANAGEMENT 123

RURAL 148

RURAL 122 FACILITIES MANAGEMENT 141 PLANNING & DEVELOPMENT 71 PROPERTY FINANCE & INVESTMENT 30 FACILITIES MANAGEMENT 25 RESIDENTIAL 22

PROPERTY FINANCE & INVESTMENT 110

Q4 2017_MODUS A SI A

APC acceleration program: quantity surveying in Asia A quantity surveyor is concerned with the costs and financial management of the building life-cycle. The need for chartered quantity surveyors is significant. By 2020 it is predicted that £18bn will be spent on construction projects across key developing markets, therefore having the skills to meet this global demand is essential. This seven-month program has been designed to develop the technical skills and knowledge of professionals who work in the built environment, to be in line with the competencies defined by the RICS to practise as a chartered quantity surveyor. This program is now available in several territories across Asia. To find out more about this course, contact: China – learning@rics.org Hong Kong – etang@rics.org Singapore – shussin@rics.org

Find out more about APC courses at academy.rics.org

Skills

they may shrink in demand, but they will still be required in some measure. Certain roles in production and materials testing will be less sought after in the future, as technology there will displace humans. KF: Hopefully there will be less transactional activity in the built environment. As technology develops, the professional is likely to spend less time on repetitive tasks and more on value-added work such as providing insights to the customer in order to enable better decision making. ER: A technical understanding of the wholelife development cycle will still be required, albeit one developed and modified as a result of technology, new materials and environmental considerations. Existing built assets will still need to be assessed, maintained and restored or repurposed. It’s possible that new digital skillsets will replace potentially redundant skills. Will qualifications carry as much weight with employers as they do currently?

NC: The importance of qualifications through academic study, accreditations and approved training courses to provide trusted solutions will never diminish. However, the importance of on-the-job training is certainly growing. With RICS supporting apprenticeships, this further opens up surveying as a career. The challenge is how we educate today’s children for jobs that don’t yet exist, which will emerge from new technology. The way to address this is through collaboration – a case in point is the partnership between RICS and property technology specialist MetaProp NYC, which looks at the global opportunities and challenges posed by technology. This will provide great insight for the industry. ER: Professional qualifications will still form a core part of the training, education and benchmark of entry-level competence. But the range or specialist nature of those qualifications will change. Soft skills, data analysis and social awareness will need to be enhanced as the professional process worker becomes the professional knowledge worker. KF: It’s crucial for clients to trust the competence of the professionals they deal with, and formal qualifications provide that shortcut to confidence. Formal learning also offers the opportunity to learn important foundational elements of theory, which sometimes the day job just doesn’t deliver. KTR: The nature of delivery of professional qualifications may change through technology, but they will remain the only 18

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guarantee for performance. The trend towards ever-higher levels of specialisation in the industry will only increase our dependency on qualifications.

What does professionalism look like in very fast-developing countries such as India and China, and how do professionals fit in?

Is a university degree still the best route into the surveying profession? And what about the role of apprenticeships?

KTR: Professionalism is now finding a much firmer foothold in populous countries such as India and China. Although the pace of change in their economies outperforms the pace of change in the built environment industry, the skills gaps for professionals are so wide that they are sure to remain relevant for some time. ER: Professionals will need to recognise the stage of maturity of those markets. Over the past 50 years, areas such as the Middle East, North Africa and Asia have recognised the development of their own cultural, educational and market-maturity status. The professional, therefore, needs to adapt their service offering to align with those markets and the expectations and values inherent within them. The advantage that developing and emerging economies have over the more mature Western economies is that they are relatively unencumbered by history, convention or institutional structures and culture. As a result, their ability to assemble the collective knowledge, experience and methodologies of those mature markets enables them to fast-track their own processes and structures. »

KTR: The role of the university can never be overrated. In these days of big data, universities are the centres of synthesis, reflection and innovation. KF: University is a great option for some people, but we need a blend of highly skilled trades, crafts and professions to create a sustainable built environment industry. Apprenticeships are an excellent way for us to build that future workforce – in no way is an apprenticeship a second-best option. ER: The critical thinking, research, networking and other life skills that are developed at university will still be valued. However, there is clearly a divide growing in the vocational market around the most appropriate and efficient route to achieving the required level of training, education and competence to deliver the professional services required, both now and in the medium term. Professional bodies will need to maintain standards while encouraging innovative and flexible ways of learning those standards.

NATALIE COHEN MRICS National manager, commercial, Herron Todd White

Q4 2017_MODUS A SI A

Skills

to exist in their current form. I suspect they will evolve to be very highly skilled indeed, and focused only on areas that still need human intelligence. ER: Technology has always supported the development of the professional, going back to Neolithic times. Advancements in information technology and artificial intelligence might have helped to accelerate the processing capability of the computer, but the need for human intervention remains. So, too, do the key attributes that a human brings to the overall experience of problem solving. KTR: I agree. Technology is no threat to professionals, but a major asset. There may be less need for manpower as we move towards building off-site and improving delivery, yet the need for ever-higher levels of skills are inevitable. Will technological advances inevitably lead to the merging of specialisms? Or might they in fact lead to greater specialisation?

JAMES DEARSLEY Founder, PropTechConsult

Is technology such as automation threatening the idea of the “profession” altogether?

JD: The industrial revolution was all about mechanisation, which meant a replacement of human labour. It resulted in a theory known as the Luddite Fallacy as, after a short-term loss of jobs, there was a recovery and more jobs were created as a result of huge surges forward in terms of productivity. This time it’s different. Mechanisation is now automation. People need to be aware of what is happening, open their minds and stop believing that it will have no impact on their lives. To some this is frightening, to others it creates opportunity. Either way, we have a responsibility to ourselves and to our children to look to the future.

NC: With new technology comes new roles and disciplines. It is exciting to think of the professions that may exist in the next five to 10 years in the built environment. I believe technology has a role to play in the profession, but it needs to be used with caution. As professionals, we must probe and question to ensure the integrity of the advice we give. That is our point of difference as chartered surveyors, and no single technological solution can replace that. Technology is there to facilitate, support and increase the speed to market of the advice we give, but it can never replace the professional. KF: The almost universal availability of knowledge could certainly encourage the enthusiastic amateur to try their hand at some of the traditional professions. It will be interesting to see if professionals continue

KF: My bet would be on more specialisation, but working in a much more collaborative fashion. You can see this happening already – a great example is BIM. ER: New categories of expertise will be created. We already see this in relation to BIM, as early adopters have developed their levels of expertise and provide specialist knowledge and advice in relation to data capture and management. Data analysts will form a core part of the professional business, as will process analysts and cultural experts. KTR: It will certainly lead to increased mergers of specialisms. Look at how the application of technology has led to modular production techniques, increasing flexibility and broadening potential use. This will lead to mergers that create more efficient production processes, with fewer components retained within organisations. The changes will affect the full life cycle of the built environment profoundly.

Work under way on widening pathways to profession The knowledge, skills, experience and competence needed to become a chartered surveyor are assessed within RICS’ 2006 pathways and competencies framework. RICS has recently conducted a review to ensure it is globally relevant and represents contemporary practice. The review acknowledged the crucial role of proptech in today’s profession, as well as demand for new competencies in areas such as data analytics, data security, 3D printing, automation and use of drones, smart cities and intelligent buildings. It also showed support 20

RICS.ORG/MODUS

for an inclusive design competency to be added. This covers the design of environments to enable people of all physical abilities and psychological differences to work and live in dignity and equality. There are 20 pathways across construction, property and land. The review revealed the need for new pathways for Corporate Real Estate, and Land and Resources; guides will be developed for both. There will be a second-stage consultation later this year, with a view to implementing changes in early 2018.

Skills

The shape of jobs to come

ILLUSTRATIONS LATIGRE

The pace of technological change is staggering. Below are some of the jobs that Elisa Magnini, researcher at Arup Foresight, thinks you could find yourself doing in the not too distant future...

ARE YOU EXPERIENCED?

IT’S WHAT’S INSIDE THAT COUNTS

User-experience design (UX) seeks to enhance user satisfaction with a product by improving usability, accessibility and pleasure when they interact with it. As buildings and homes become increasingly “smart” and embedded with multiple internetconnected devices, a built environment UX specialist will be needed to keep things user-friendly and intelligible.

Specialists will assess and design interior spaces to ensure they are “healthy”. The role of indoor wellbeing curator is a natural evolution from emerging interest in wellbeing, and WELL Building standards, an offshoot of sustainable design that aims to ensure that spaces do not adversely affect occupants’ emotional, mental or physical health.

HOW TO GET A HEADSET

CONSIDER ALL THE OPTIONS

Augmented reality headsets and other devices that enhance our regular view of the world by overlaying 3D holograms and data are already being used by some built environment professionals. An augmentation consultant would advise on how to design the physical world to make the most of the technology and on the most effective virtual overlays.

Advances in AI and machine learning will enable autonomous building design, based on algorithms that assimilate and interrogate complex data sets. The more diverse the information, the more robust the designs will become. A scenarios designer will feed the computer with relevant data, or direct it to observe situations to which the designs are most sensitive. »

Q4 2017_MODUS A SI A

Skills

‘THERE IS A WAR FOR TALENT ’ Rapidly growing cities, vast infrastructure projects, booming home ownership … Asia is literally building its future. But how are we going to attract the next wave of skilled, young professionals to help get us there? Words Alex Frew McMillan

eal estate risks being on the losing side in the war for talent in Asia. Salaries across the continent are slipping, the upper echelons of the profession all too often look the same, and other, more attractive industries are stealing an advance. The bald truth of it is that real estate is no longer cool. Asian families where everyone has a smartphone may push their brightest offspring in other directions: engineering, medicine, finance, computing, the kinds of professions that people want to boast about on social media. “There is a war for talent,” says RICS’ senior economist, Jeffrey Matsu. “We shouldn’t look at the built environment on its own. We need to look at what other industries are doing to attract this pipeline of talent, and what kind of tools they are introducing.” The real estate profession values consistency and rewards long professional lifetimes. But compensation may need to be more varied, along the lines of the technology and finance industries, Matsu believes. “You can’t say: ‘We are on the cusp of a fourth industrial revolution, but we’re going to pay you less than 30% than you would get elsewhere,’” he says. Fortunately, the situation is far from hopeless. The increased use of technology in the profession is a key way to change perceptions, to draw in millennials and other young employees. It is also a lure for mid-career professionals with skills to transfer.“People like the industry’s purpose but they perceive the work negatively,” Matsu says. “That needs to change.” The use of 3D printing, modular construction, robotics, artificial intelligence, big data and BIM promises

RICS.ORG/MODUS

to shift that scenario. The challenge of improving the efficiency and the performance of the property industry is an intellectual and practical draw that can lure in talent. At the moment, there is little promise of heady advancement or even a modest bump in your take-home packet. Compensation in real estate fell 5.6% this year compared with last, reports the 2017 RICS and Macdonald & Company Asia Salary & Benefits Survey (data, p24). That brought average pay to $90,138, no short shrift in emerging Asia in particular. But that is down $5,342 in the last 12 months. Those who got a raise got a small one – increases of 5% or less rose by 7%, while raises of 6%-10% fell by 6%. Will prospects change? Last year, business curdled in China in particular. The People’s Republic has led pay rises, bonus expectations and anticipated growth for most of the last decade. But the 2016 salary survey reported a noteworthy drop in sentiment. That has been corrected in 2017, with the prospect of an economic hard landing in China averted. Asia-wide, only 13% of property professionals anticipate a salary decline this year, while 42% expect to maintain their take-home pay and 37% expect a raise. More than half (53%) of respondents expect their company to hire more people this year. The number of people expecting economic activity to improve is up, while the ratio of pessimists is down. Although pay increases were lower in China this year than the other survey locations of Hong Kong, Malaysia and Singapore, the Middle Kingdom should – in theory – be at the forefront of any compensation advance. Broadly, demographics drive many of the employment trends »

Skills

Q4 2017_MODUS A SI A

Skills

JEFFREY MATSU RICS Senior Economist

shaping the real estate industry, although that can sometimes be hard to appreciate in the boardroom or on the construction site. Japan is at the crest of the demographic wave challenging the developed world. Its population is ageing, its workforce declining, its demand for new office space and homes faltering. But that does not take into consideration the two faces of Japan: Tokyo, Osaka and the country’s other large cities are thriving, and drawing in young workers. It is rural and small-town Japan that is suffering.

lsewhere, Asia is blessed with a youthful and increasingly skilled workforce, and a population that demands very different, new places to live and work. There are, for the most part, plenty of warm bodies to populate construction sites. And the skill set at the top of the wage scale is expanding. Beyond sheer numbers, though, Asia has definite challenges in creating a happy, motivated and varied workforce. The culture on this continent generally does not favour diversity. There are thick cultural barriers that block the ability of women in particular to work. Ethnic splits all too often manifest themselves as tensions rather than aspects of Asian culture to celebrate. The situation is not always improving, either. In India, for instance, business services firm BDO reports that women are both underpaid, by about 25%, and underrepresented, comprising only 28% of the workforce, down from 37% in 2004-05.

24 RICS.ORG/MODUS

Family-run businesses dominate the property industry, notes Nidhi Seksaria, partner and head of BDO India’s real estate and construction practice. Leadership roles are therefore often established through inheritance, which disadvantages women. Women in India also prefer part-time roles, and they are discouraged societally from taking on overtime. Real estate, while the second-biggest employer in India behind agriculture, is also, for the most part, unregulated, says Seksaria. So even when women are employed in the industry, they may face unscrupulous hiring practices and unfair working conditions. The same applies to unskilled workers, although in client-facing roles class, rather than caste, tends to sway hiring. Families are no less influential in other parts of Asia, where dynastical wealth is often founded on property. The very concrete nature of the bricks-and-mortar business means long-term wealth is built slowly and not easily lost. But as a result, it is very carefully and deliberately transferred. In Asia in general, therefore, property tends to be a patriarchal, at times hidebound, industry. Challenging the status quo will require staunchly proactive policies to diversify the corporate culture. It starts in the HR department but needs to permeate the corporate ethic.“It’s evolutionary rather than revolutionary,” Matsu says. “It’s not enough to say: ‘We’ve thrown out the policy book, and these are the new rules.’” Particularly at the top of the industry, there are few familiar faces for those with unconventional career paths, family backgrounds or personal lives. As a result, if there are two equal candidates, a company should proactively choose the one that offers more diversity, Matsu believes. Real estate must become a “welcoming place to work.” Consider the issue of career breaks. Women are often penalised in terms of advancement because they are more likely to take time out to raise families – whether they actually do or not. The industry in Asia needs to compensate not only for this bias but also accommodate men who might take the same step, or people who take a leave of absence to care for elderly family members, for instance. “We are in a very homogenous, traditional industry,”says Matsu.“We need to recognise that as an issue, and make sure that policies are generated in a very proactive and positive manner, because it doesn’t just happen. “We need to ask whether we are doing enough,” Matsu continues. “Are we actually representing diversity through all the levels of our organisations, rather than just talking about it? I think the answer is no.” n

Figuring out the profession How could the results of this year’s Salary & Benefits Survey inform the war for talent? For more data, go to rics.org/asiasalarysurvey

$90,138 is the average salary of a property professional in Asia, down 5.6% from $95,480 in 2016

12.4%

higher base salary earned by those who are either MRICS or FRICS – an average of $101,273

79%

of respondents said salary was the most important aspect of their job, followed by management style (71%)

-16.2%

fall in trainee or graduatelevel wages, from $30,755 in 2016 to $25,777 in 2017

of respondents have up to four years’ experience, versus 30% with more than 21 years – highlighting the shortage of young talent

SOURCE: RICS AND MACDONALD & CO. ASIA SALARY & BENEFITS SURVEY

PEOPLE LIKE THE INDUSTRY’S PURPOSE BUT THEY PERCEIVE THE WORK NEGATIVELY… THAT NEEDS TO CHANGE

Skills

$90,138

12.4% 79% -16.2% 9% JEFFREY MATSU

Q4 2017_MODUS A SI A

Co-living

LUXURY BEDROOM GAMES ROOM ROOFTOP GARDEN LIBRARY FULLY S T OCK ED B A R CINEMA SPA

WELCOME TO YOUR DREAM HOME*

*YOU W IL L BE SH A RING W I T H 50 0 O T HER PEOPL E

26 RICS.ORG/MODUS

Co-living

M Words Mark Wilding Images Nick Guttridge, Amandine Alexandra

oving to a new city can be an isolating experience. When Ed Thomas arrived in San Francisco in 2014, he had a different problem: learning the names of all his housemates. His new home contained 60 bedrooms and an entire floor of shared communal space. Thomas immediately loved the concept. It felt not just like a home, but a community. Three years later, Thomas is head of community experience at the Collective, a co-living provider with several sites across London. All are designed to offer a similar communal experience. Thomas lives and works at the company’s flagship site, a 546bedroom, purpose-built development to the north west of the city that claims to be the world’s largest co-living community. The Collective Old Oak is a cross between a trendy hotel and student accomodation (box, overleaf). Walking through the front door, visitors are greeted by a reception desk, over which a cinema sign spells out

ALL TOGETHER NOW Residents at the Collective’s Old Oak scheme can make use of communal spaces such as the “secret garden”, either for their own events or to join in with those organised by the site’s community managers

the message: “Honey, I’m home.” In the restaurant, the tables are designed to look like giant cassette tapes. Rooms are arranged over 10 floors, each of which features a different communal space. There is a library, a cinema, a spa and a bar. Rents start at £850 a month, which covers not just all bills and cleaning, but also access to an almost bewildering array of social opportunities. Thomas is evangelical about the co-living concept. He describes returning to the UK after two years co-living and working in San Francisco: “I felt my mission was to help other people have that similar experience.” For Thomas, co-living represents the future. “I got into it by chance, then realised this is absolutely how we’ll live,” he says. From the concept’s birth in San Francisco in the early 2000s, you can now find coliving spaces in many of the world’s biggest cities. Each site varies in terms of its scale and ambition, but there are some common characteristics. Rooms tend to be tiny. Residents are instead encouraged to spend their time in shared social spaces. Operators employ community managers to organise events and create a sense of belonging. “They are the rock stars,”says Christopher Bledsoe, co-founder at US co-living operator Ollie.“They do more to define the experience of our renters than anything else. They are the ones that greet them with a smile. They are the ones that, if someone’s going

through a rough break-up, make sure they join the communal dinner for the evening.” In one sense, co-living was born out of necessity. Spiralling property prices in cities mean home ownership is now out of reach for many young people. In that scenario, coliving is an economic solution to the woes of Generation Rent. But there is another factor at play. Loneliness is typically thought to affect the elderly, but a 2010 report from the UK’s Mental Health Foundation found it was of greater concern among young people than old. “Socially, we are increasingly isolated,” suggests Thomas. Co-living provides an opportunity to forge real-world connections. This social aspect of the experience has been stretching operators’ ambitions. Yoan Kamalski is co-founder at Hmlet, a co-living operator with sites in Singapore and Tokyo. He describes his business as offering something “between Tinder and LinkedIn but linked to a piece of real estate”. The company started out renting properties with six rooms, but is now “getting bigger and bigger real estate to really start creating that community, that added value”. Reza Merchant, the Collective’s chief executive, concurs. “As we did bigger and bigger schemes, we realised the scale allows us to create a much better product. You can provide more shared space. You’ve also got more manpower to create that community. It’s difficult to do that at a smaller scale.” »

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Co-living

ROOM IN THE MARKET? Old Oak is currently on the market for £100m, but as yet no-one has been tempted to back an investment class hovering somewhere between student accommodation and a trendy hotel

Residents at Old Oak can choose to attend a range of gatherings. There are Friday-night drinks, movie nights and “speed-meeting” events to connect with other residents. A coding collective has been formed, as well as a poker group, and an entrepreneurship meet-up. Alice, a 19-year-old student from Switzerland, moved to the Collective after living in student halls elsewhere in the city. “It’s much better,”she says.“In the last place, the community was different. We didn’t really talk. It was me in my room just going out to school and coming back.” Clearly, co-living appeals to those looking for an active social life as well as a place to sleep. Perhaps for that reason, residents often fit a typical profile: young, single, and solvent enough to pay rents that, while not astronomical, are not insignificant, either. That said, there are no hard and fast rules. The Collective has residents in their 50s and 60s. At Ollie, residents include recent divorcees and young couples. All have made a simple calculation: that personal space is less important than community. At its Carmel Place scheme in Manhattan, Ollie offers studios of between 260 ft2 and 360 ft2 (24-33 m2). Bledsoe says those who fixate on the scarcity of space are missing the point. “For a renter who eats out all the time, how important is it to them that they have a dining room?” he asks. “If we’re creating the wrong product, the market is the ultimate arbiter. We view space as one of many factors on which people are basing their decisions.” 28 RICS.ORG/MODUS

Ollie will soon put that assumption to the test. The company recently opened its third site, a 127-unit development in Pittsburgh, about which Bledsoe is particularly excited. “Once we’ve demonstrated its success, it turns the lightbulb on for every other tertiary city throughout the country.” Other operators are set to test the sector’s appeal among investors. At the end of May, the Collective put Old Oak up for sale, seeking offers upwards of £100m, on the understanding that the company would continue to manage the site.

“That will be a good litmus test of the market,”suggests CBRE’s Arthur McCalmont MRICS, senior director of UK residential capital markets. The sale marks one of the first co-living investment opportunities brought to the market. Nevertheless,“we get lots of enquiries”, he says. “If there’s a good portfolio of well-managed, high-quality stock, there will be a lot of interest.” Could it become a recognised asset class? McCalmont is cautiously optimistic: “It has relatively high turnover, there’s a lot of little units that aren’t very varied. You’re targeting quite a narrow occupier market. You get quite high management costs and also maintenance is greater. It certainly sits at the higher end of the risk curve and, therefore, investors demand a higher return.” That kind of investment could open up growth opportunities on a different scale. In June, the Collective secured planning consent for a 250-room scheme in Stratford, east London. The next phase of expansion will see it branch out to other cities, giving residents the chance to travel the world, plugging into ready-made communities every time they arrive somewhere new. Ultimately, the company believes that renting needs to be part of the sharing economy. “When you build an app or website, you spend so much time speaking to your users, trying to understand what it is they want and what’s missing,”says Thomas.“You can build a product that really suits their needs. In housing, because there’s the luxury of excess demand, people haven’t really had to stop and think, what is it that people want?” n

From little acorns: how Old Oak grew “When the Collective came to us in 2013, Reza [Merchant] had a portfolio of around 50 units and a number of developments throughout central London,” writes Andrei Martin, partner at PLP Architecture. “He saw the benefit of bringing people together in a communal setting. The buildings were not entirely conducive to this purpose. What was lacking was the way in which architecture can really help to galvanise interactions between people. “At Old Oak, we created spaces that are very different and that can be changed with time. At the moment, there’s a secret garden, a library, a games room, a screening room and a spa. There’s a sense that there’s a wealth of possibilities. You can quite

quickly change your hang-out and not feel that life is repetitive. This is something that is at the heart of architecture – spaces should surprise and delight. “Even though rooms are small, you’re not deprived of anything you’d expect to have in a studio. Every room has a double bed. All units have a private bathroom and there’s also a kitchenette that you either have sole use of, or you share with one other person. “There’s really no regulatory framework for this type of accommodation. It’s still very difficult to get the planning and regulatory approvals for such a building. Having to prove that the quality of residential living is not coupled with the dimensions was quite a big hurdle to overcome.”

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Infrastructure

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Infrastructure

Last year, 3.8 billion people made a journey on an aeroplane, and by 2035 that figure is expected to double. If countries are to remain competitive in the battle to attract a new wave of air travellers, itâ&#x20AC;&#x2122;s vital their airports are fit for the future. So how do you plan, develop and finance this most challenging of infrastructure projects?

FLYING STARTS Words RenĂŠ Lavanchy Photography Mike Kelley

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erched precariously on its Queens promontory, runways jutting into the East River, the old is – finally – giving way to the new at New York’s LaGuardia Airport. The original main terminal building, opened in 1964, was expected to handle no more than eight million passengers a year. To cope with the 15 million people who now pass through the terminal, work has been under way since June 2016 on the 1.3m ft2 (120,770 m2) LaGuardia Central Terminal B, which will provide over 50% more floorspace, enough to accommodate the 17.5 million passengers expected by 2030. While LaGuardia may be a high-profile example of America’s under-invested and worn-out infrastructure – former vice-president Joe Biden once likened it to being in “a third-world country” – it is far from the only one. “Most of the airport terminals, from small regional facilities to large hub airports in the US are ageing,” argues Dwight Pullen, Denver-based senior vice-president and national director of aviation at Skanska USA. “You can walk through them and see that.” Not only has traffic increased, so has the size of planes, Pullen notes. The taxiways at LaGuardia are too cramped for modern wide-body aircraft, and public areas too small for the passenger numbers dropped off by each plane. Nor is there space for today’s security screening procedures. It is a pattern repeated all over the country. US airports have drawn up plans for $100bn of infrastructure projects between 2017 and 2021, according to Airports Council International, but many of these plans have yet to leave the drawing board. If the US has the biggest need of renewed airport infrastructure, Asia and the Middle East may require the most extra capacity over the coming decades. The International Air

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TERMINAL PROBLEM Built in 1964, LaGuardia’s original main terminal was only ever expected to cope with eight million passengers – not the 15 million that used it in 2016

Transport Association expects four of the five fastest-growing aviation markets in 2016-2035 to be in Asia, totalling an extra 1.8 billion passengers across the region. The Middle East is forecast to be the fastestgrowing region, with 4.8% growth and 244 million more passengers. “There is significantly more growth here in terms of population, GDP, middle class – each of which are key drivers of airport growth and capacity need,” says Don Stokes, an Asia-based partner in the infrastructure practice of law firm Freshfields Bruckhaus Deringer. “Among the biggest obstacles to Asia achieving its potential in terms of economic growth and GDP is the state of the infrastructure.” In the Middle East, the generators of growth are the airlines themselves, suggests Vimal Shinh FRICS, director at Turner & Townsend in Dubai. “The UAE especially and the GCC [Gulf Cooperation Council countries] are becoming large hubs. They’ve got some of the biggest airlines with aggressive growth plans,” he says. “That’s what’s pushing the demand, which is then pushing the airlines, which is then pushing the reason for these huge [infrastructure] assets, because the airlines are growing out of the assets that they have.” Dubai is spending more than $27bn over 11 years expanding Al Maktoum International Airport to be the future base of the Emirates airline. The ultimate capacity of 220 million passengers would be more than twice that of Atlanta’s HartsfieldJackson, currently the world’s busiest airport. With deep pockets and authoritarian political will, Dubai may be willing and able to afford to fund this from public borrowing and revenues. But countries with neither are turning to private finance.

Infrastructure

Members of the ground crew The sheer scale and complexity of airport projects present a unique set of rewards and challenges, as these high-flying professionals will attest

“WORKING AT AN AIRPORT IS SUCH A COMPLEX STORY” PROJECT RUNWAY LaGuardia’s new terminal is being constructed by a consortium under a 35-year PPP agreement that is the largest in US aviation history. Two-thirds of the project’s total cost has been financed by private funds

PORTRAIT ILLUSTRATIONS POLI LOVI IMAGES OFFICE OF GOVERNOR ANDREW CUOMO

ack at LaGuardia, a British-born quantity surveyor is picking his way round the new terminal’s construction site. On the shoulders of Lionel Dore MRICS, director at Canadian cost consultant BTY Group, rest the interests of American bond investors, who are providing $2.41bn of the $4bn budget. “We visit the project on a monthly basis. We walk the project,” Dore explains. “We have a meeting beforehand with the contractor and concessionaire to understand what’s happened in the month, how much money they are applying for, then we get out and see if that’s reflected.” That close monitoring is a prerequisite for unlocking private finance in infrastructure. The new terminal is being developed by a private consortium, under a public-private partnership (PPP) contract with the Port Authority of New York and New Jersey that operates LaGuardia. In return for financing, building and maintaining the terminal, the “concessionaire” will operate it and collect revenues for 35 years. While airport terminal PPP projects are nothing new, the LaGuardia project is the first of its kind in the US.

Public authorities, particularly in the US, often see PPPs as simply an additional pot of money they can turn to when unable or unwilling to finance investments from their own borrowing. But once an authority gets interested, advocates say, further benefits emerge. “In a PPP, the partnership is crucial. Working together with the port authority helped us define a solution for the project that went well beyond just financing,” says Farhad Soltanieh, investment director at Skanska Infrastructure Development, one of the LaGuardia consortium’s stakeholders. “We provided an innovative design, construction and operational solution that achieved the client’s objectives,” Soltanieh says. “It was more cost effective, and served the airport better from the overall delivery and operations perspective.” As revenues grow at the terminal, the consortium pays a share back to the port authority, thus ensuring the public sector can enjoy the fruits of any increased profitability. President Donald Trump has decried the state of his country’s airports, and his budget proposal promises to make greater use of »

Having an interest in large-scale, complex projects makes Birgit Werner MRICS the perfect fit for her role as vice-president of property development at Munich Airport. Since her arrival from Zurich Airport in 2014, Werner has set up a real estate unit as a core business division within the airport company, and is currently overseeing the development of further facilities, including hotels and affordable housing that will transform Munich into an “Airport City”. Nowadays, she notes, “the airports business is so volatile that you need new income streams via real estate. Hotels and parking, for example, really are cash cows for airports.” One challenge, she says, is meeting the high expectations that airport operators have for rates of return. “With profitable parking and hotels it is not a problem. But for offices, compared with the real estate market in Munich, it is tough.” “Working at an airport is such a complex story,” she continues. “It’s interesting because of where you are – you’re setting up a mixed-use development, but at a place which is, in a way, a non-market. It’s a sector with a lot of politics and a lot of stakeholder management, and this is what I’m really good at.”

Q4 2017_MODUS A SI A

Infrastructure

“THE WAY YOU DO BUSINESS IS QUITE DIFFERENT WHEN YOU HAVE A STATEOWNED COMPANY AS A SHAREHOLDER”

RICS.ORG/MODUS

OVERDUE DEPARTURE PPP has struggled to get off the ground in the Philippines, as the private sector has borne the risk of securing the relevant permits – a situation the government has finally rectified on the Mactan-Cebu airport upgrade

private finance, including PPPs, so it is likely the federal government will encourage the states and cities that run most US airports to embrace this model. It will not, however, be easy. Securing private capital for an airport requires hard work to demonstrate how that capital will be protected and repaid.

n the other side of the world from New York, private finance is upgrading Mactan-Cebu International Airport, the second busiest in the Philippines. A consortium including India’s GMR Airports is investing some $670m in upgrading the airport, which was designed for 4.5 million passengers, but handles more than eight million. Sidharath Kapur, president of finance and business development at GMR, is full of praise for how the Philippine government has worked with his firm. However, PPPs in the Philippines have had several false starts over the past decade. One flaw with earlier projects was that the state expected the private sector to assume the risk of securing the permits to build on land. The potential

delays and cost overruns involved were unpalatable to investors – a situation the government rectified on Mactan-Cebu. Access to land remains a problem in Asia: in India, the construction of a new $2.5bn privately financed airport for Mumbai is being held up by the acquisition of the necessary land, which the government failed to complete before awarding the contract. Making the numbers add up is another problem. Stokes notes that airports in emerging markets such as south-east Asia derive a relatively low share of their revenues from non-aeronautical sources, such as car parking and retail. Most comes from aeronautical revenue like aircraft landing charges. But these airports’ reliance on lowbudget airlines, he adds, means “it’s very difficult to generate the sort of revenues that you need for project finance”. This, in turn, makes airports reliant on low-cost development finance, which is limited. Kapur concedes the point about non-aero revenues, but the flip side, he argues, is that those revenues are growing much faster than in developed countries, such as India, »

IMAGE GMR MEGAWIDE CEBU AIRPORT CORPORATION

Paulo Dantas MRICS has nearly 20 years’ experience as an infrastructure lawyer, focusing on public-private partnership projects and procurement. As a partner at law firm Demarest Advogados in São Paulo, he has advised bidders and worked on feasibility studies for the Brazilian government’s airport concessions programme, under which private consortia bid to finance, operate and upgrade airports. Dantas welcomes the recent reforms to the way contracts are issued, which previously saw state airports operator Infraero retaining a shareholding in each airport. Now, the winning bidder takes 100% ownership of the project company. “The way you do business is quite different when you have a state-owned company as a shareholder,” he notes. “You have all the bureaucracy and rules that the state-owned company has, so it’s not as efficient as the private sector.” Brazil’s ongoing corruption crisis has rocked its major construction firms, who have pulled back from bidding for airports. Dantas believes that the bidders stepping in to replace them will be better able to focus on growing nonaeronautical revenues. “The operation [of the airport] will be the most important goal for the private players. They will be able to bring in much more money and can even consider going public. It’s quite interesting to see how it’s going to evolve from here.”

Infrastructure

Consistently inconsistent: top 10 airport projects by cost Airports come in different shapes and sizes, so there is enormous global variation in how much they cost. But there is another reason for this variation: inconsistent approaches to the classification and reporting of cost. The International Construction Measurement Standard (ICMS), launched in July 2017, aims to change this. For the first time, cost managers will be able to go all over the world and present a standard that has been endorsed in their clientâ&#x20AC;&#x2122;s home country or region. rics.org/icms

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SOURCES: Timetric/Construction Intelligence Center; Reuters; National Development and Reform Commission of China; Dubai Aviation Engineering Projects, Government of Dubai; Ineco; China Daily; Los Angeles World Airports; Singapore Ministry of Transport

i New Mexico City International Airport | Mexico City, M e x

Chengdu New Airport | Chengdu, China

New Istanbul Airport | Istanbul, Turkey

Beijing Daxing International Airport | Beijing, China

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Long Thanh International Airport | Long Thanh, Vietna m

on Hong Kong International Airport Three Runway System | Hong K

Heathrow Airport expansion | London, UK

W Al Maktoum International Airport expansion (2014-2025) | Dubai

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Q4 2017_MODUS A SI A 35

An airport with no airplanes? Surely, you can’t be serious …

“After almost 15 years of planning … the construction of a new, large airport for Berlin has begun,” the city’s government announced with a note of relief on 5 September 2006, the day of the ground-breaking ceremony for Berlin Brandenburg Airport. Designed to consolidate Berlin’s two existing operational airports into one efficient hub, it was scheduled to open in autumn 2011. Eleven years and about five missed deadlines later, the latest plan is for it to open sometime in 2018 – by which point the volume of air traffic forecast for Berlin means it will already be operating at capacity. The cost has shot up from a 2006 estimate of around $2.25bn to as much as $8bn, although the airport company has not released an official cost estimate recently. Officially the delays have been blamed on a long list of technical problems, from faulty automatic doors that fail to close in the event

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of fire, to escalators that were too short, to 90km of incompetent wiring. One of the most intractable such failings seems to have been the overly complex fire control system. Dubbed “the monster” because of its size, it relied on sucking smoke downwards instead of upwards. It has now been redesigned, dismantled and rebuilt. Some industry watchers point to an overarching failure of governance. The “engineer” in charge of the fire control system was sacked after being revealed to lack an engineering qualification, and one official and several contractors have been investigated over possible corruption. Some point to a governance structure that is too hierarchical and which lacks trained professionals; the airport’s supervisory board is dominated by local politicians. The abrupt dismissal of the design consortium in 2012 has also been blamed for causing a knowledge vacuum.

Once heralded as the final, gleaming apogee of German reunification, now the laughing stock of a nation famed for its efficiency. Just who or what is to blame for the sorry saga of Berlin Brandenburg Airport?

Infrastructure

“I’VE BEEN LUCKY ENOUGH TO BE PULLED ACROSS ALL PARTS OF A PROJECT” Vimal Shinh FRICS has spent much of his professional life on airport and commercial projects. His first job after leaving university in the early 2000s was for BAA – now Heathrow Airport Holdings – in the UK, where he first acquired a taste for managing airport projects: “I liked the fact that there were various stakeholders involved. It was very intricate in terms of how the whole system worked, it was very challenging.” Working his way up from small, local capital projects at BAA to larger schemes, Shinh stepped away from airports to work on commercial developments in the Middle East for several years, before being persuaded to return to his current role as a director at Turner & Townsend in Dubai. “The Arab culture is very warm and welcoming. They want that to be portrayed through their airports as well,” he notes. Nowadays Shinh works for public sector airport authority clients across the UAE and the Gulf states. Depending on his clients’ needs, he can get involved in a project’s earliest stages and work all the way to completion, including conceptual design and masterplanning, and provides services such as cost estimating, cost assurance and contract administration, deploying the “basic principles of quantity surveying”. “I’ve been lucky enough to be pulled across all parts [of a project]: airfield work, assurance works, peer reviews and central processing areas,” he says.

which is reporting average growth of 20% a year: “There are opportunities for private operators to enhance their business model and create shareholder value, because typically in non-aero revenues, a large part goes into the bottom line.” That seems to be the business model for Mactan-Cebu, where much of the debt financing the upgrade is only repayable after 15 years, according to reports. This reflects the fact that the investors plan to grow commercial activities at the airport over the life of the contract, generating enough cash to repay the debt. PPPs are often lauded for commanding a tighter grip on finances, but they are not immune from cost overruns. This summer RICS joined with more than 40 other global professional bodies to launch the International Construction Measurement Standard, a set of common rules to allow like-for-like cost comparison across global construction projects for the first time. Kevin O’Grady, an associate director in Arup’s airports practice, believes the standard will benefit his UK airport clients by reducing the scope for cost creep: “The accuracy of cost information to support funding requests is paramount … robust data enables better decisions on design and cost at every project milestone gateway.” Projects whose cost is contained are less likely to be de-scoped or scrapped.

ell-resourced, well-run airports can be made more profitable and contribute more to the economy. Nevertheless, some megaprojects currently on the table will still struggle to pay for themselves. Vietnam plans to seek private investors for a $16bn airport at Long Thanh to serve Ho Chih Minh City, but still expects to contribute substantial public subsidy. Even LaGuardia’s $4bn terminal is partfunded with $1.2bn of grant money from the port authority; this may or may not reflect the relatively low landing charges paid at airports in the US. “It makes a lot of sense, provided that the risks are manageable, to have the private sector involved,”says Chris Chalk, UK-based aviation practice leader at engineering firm Mott MacDonald. “There are instances – particularly at the early stages – where the risks are too great for the private sector to take. It depends what you can charge and what the risks are on revenue. Sometimes a private company will work on certain parts of an airport.” In Turkey, for example, many

LONG HAUL Political will, plenty of land and vast wealth means Dubai can afford to spend more than 11 years and $27bn expanding Al Maktoum International Airport

terminal buildings are privately operated, while the airfield remains publicly run. Established global power or emerging economy, countries have a common goal in expanding their airport capacity to meet demand – and they are responding in different ways. The Middle East, with determined governments and relatively underdeveloped land, is powering ahead with megaprojects. China aims to build more than 70 airports between now and 2020, but other governments in the region are proceeding more slowly and with tighter budgets. The US, meanwhile, could be on the cusp of an airport-building renaissance, if it can get the projects and the financing right. Operators that fail to invest could find airlines voting with their feet, warns Chalk. “If there’s a lot of congestion, the airport will become less attractive to airlines and they may choose other destinations or put more capacity on elsewhere. Delays cost money, so from an airline perspective it’s important.” Success or failure in delivering investment could determine which countries can best compete for economic growth and jobs, suggests Dore’s fellow BTY director, Ryan Brady: “If the US falls behind in the quality of its infrastructure, it affects its ability to move goods and services through supply chains, and it impacts our competitiveness on a global scale, which is a salient topic at even the highest levels of government.” President Trump would doubtless agree. 

Q4 2017_MODUS A SI A

Land rights

LIES How can you prove what’s rightfully yours when there’s no formal means to register your property? Modus reports on the global initiatives that aim to bring security of tenure to millions Words David Adams Illustration Noma Bar

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re you able to prove that you own your home? If you are a Modus reader who is also a homeowner, you almost certainly can. But this level of land tenure security is very far from being the global norm. In developing nations it is downright unusual: about 70% of land and property is unregistered. The World Bank suggests that perhaps 90% of residential and commercial property in Africa is untitled. “To identify properties and register them to provide certainty of occupation and ownership requires a legal system that defines title, a process for registration and an infrastructure that allows that to happen,” notes Richard Baldwin, global practice lead for land tenure and property rights at international development company DAI. “In some countries all those things may be missing.” In places where land tenure is not formally recorded, land and property may be misappropriated; personal economic opportunities are restricted; would-be investors face significant financial, legal and reputational risks; and governments cannot raise money through property taxation. In recent years the need to address this problem, which affects millions of people worldwide, has been more widely recognised. The issue of land governance now has a prominent place in the UN’s Sustainable Development Goals, adopted in 2015. The

THE first of these goals, which calls for an end to poverty, includes a target for equal rights for all to ownership and control over land and other forms of property by 2030. The only trouble is that there is no chance the target will be hit. The task is just too big. Take India, for example. About two-thirds of the 7.5 million civil court cases under way in India during 2016 were related to land and property. Most of the litigants were individuals considered to be from low castes who have low incomes, according to a study by the civil society organisation Daksh. More than 6 million of these cases had been stuck in the system for more than five years. Nor can citizens necessarily rely on the authorities being prepared to fight for people who are dispossessed. Of 289 internal conflicts reported in India during 2016, 80% were caused by development and industrialisation projects – most the direct result of the government taking possession of land without the consent of local communities. The survey was conducted by the Rights and Resources Initiative, which advocates for the land rights of indigenous and local communities, and by the Tata Institute of Social Sciences. It showed that these conflicts affected 3.2 million people and put more than $179bn of investments at risk. In Kenya, Transparency International is also trying to help people adversely affected by corruption related to land rights. “We hope to do this by securing tenure for all types of land, rural and urban,” says Samuel Kimeu, executive director for the NGO in Kenya. The organisation has developed a software tool that anyone can download to learn more about the process of trying to »

LAND

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Land rights

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Land rights

Failed effort is a Greek travesty Greece is the only country in the EU that does not have a modern land registry, despite successive promises to create one. The EU put up €100m to fund the project in 1994, €60m of which was paid back in 2001 when it became clear that very little progress had been made. By then, the Greek government had secured an additional €41.6m for the programme. An enquiry carried out in 2011 established that, by that time, only 17% of property titles and 6% of land had been registered. One side-effect of these problems is that Greece’s National Cadastre and Mapping Agency has been starved of funds as a result of austerity measures imposed in the wake of the country’s financial crisis. But the slow progress is also symptomatic of deeper problems in government administration that have created conditions within which corruption and tax evasion have been relatively easy to perpetrate in relation to land ownership. Many records are held on handwritten ledgers stored by local registrars, leading to long-running ownership disputes between individuals and the church and state, which has historically claimed any land for which there is no hard evidence of private ownership. Another problem is that swathes of land are still officially designated as forest, which means it is not supposed to be available for economic development. Yet much of this land was deforested and developed on decades ago.

secure tenure. It is also focusing efforts on better recognition and protection of the rights of women in relation to land ownership. Poor land rights security is not good for government, either. One of Transparency International’s other campaigns in Kenya is based around securing tenure for state schools, some of which lose land to corrupt officials. “For a big percentage of all the schools in the country, their land is at risk,” says Kimeu. “Just the other day I saw that a school, which has existed for 30 years, had been given two weeks to vacate land because someone else is claiming they own it.” The economist Hernando de Soto argues that a lack of formalised land rights is a fundamental reason for the economic weakness of states. If people are excluded from formalising land and property rights, he asserts, a black market will be created, along with “dead capital” related to the land in question that cannot be taxed, capitalised or protected through the rule of law.

ut if the potential benefits to be gained from solving the problem are obvious, so too is its dizzying scale. What steps can be taken – and are already being taken – to begin to address these issues in very different societies the world over? In helping to create accurate land registers and cadastre mapping, the role of the surveyor is, understandably, vital. But surveying to the usual standards demanded of professionals in more established markets is too timeconsuming and costly for this task. “It will take many hundreds of years to get the job done if we continue to work with traditional surveying methods,”says Kees De Zeeuw, director at Kadaster International, the Netherlands’Cadastre, Land Registry and Mapping Agency. “Society cannot wait that long. We have to think of new ways to work.”

Technology has made this possible, in the form of satellite photography, mobile apps and open-source data management software. “If you buy satellite imagery off the shelf that’s a year old, it’s relatively cheap,” says Baldwin. “We also have mobile devices able to record spatial information and attribute information about owners; and we can link smartphones with GPS devices by Bluetooth and get accurate mapping to within 1.5m.” These technologies enable so-called fit-for-purpose (FFP) land administration, which enables local people, assisted by land professionals such as local surveyors and para surveyors, to survey properties to a standard that is good enough to meet practical requirements. “Plus or minus 1.5m is probably good enough,” says Baldwin. “You use satellite photography and then mark the boundaries on it with the agreement of the community. That means costs can be reduced from $30-$50 per parcel to between $5 and $10.” The most successful implementation of FFP to date has, arguably, been in Rwanda. Following a successful pilot in 2009, nationwide land registration was completed in just four years. More than 100,000 local people were employed during the project, which saw 10.4 million parcels of land being registered and 8.8 million land lease »

THREE-QUARTERS OF THE WORLD DOES NOT HAVE SECURITY OF TENURE. PROFESSIONALS HAVE AN OPPORTUNITY TO HELP DUNCAN MOSS FRICS ILMS Coalition

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Land rights

certificates issued at an average cost of $6 per parcel. The method is now being used in other countries, including Namibia, Mozambique and Ethiopia. “We’ve got away from the idea of heavily trained surveyors and precision GPS, to using technology that is much more pervasive,” says Baldwin. “But the surveyor is still needed. They can oversee the process and help to manage interaction with communities and adjudication processes in disputes between neighbours.” These techniques are also proving useful in other situations. De Zeeuw cites work that Kadaster International has done in Nepal since the huge earthquake of April 2015, which killed around 9,000 people, injured almost 22,000 and destroyed thousands of homes. In some cases entire villages were wiped out, and many people lost any documents that proved ownership of their land. Kadaster and other groups are working with the Nepalese National Reconstruction Authority on pilot projects that will help individuals and families access the legal and financial resources they need to claim tenure and rebuild their homes.

rogress towards creating a more reliable land registry within individual countries is being complemented by international initiatives. The UN Habitat Global Land Tool Network seeks to alleviate poverty through land reform and improving security of tenure. It is currently running public education projects focused on this issue in Uganda, Kenya, Mozambique and Ethiopia, and sister organisation UN Global Geospatial Information Management is helping to promote FFP. Meanwhile, RICS is among more than 30 organisations working on the International Land Measurement Standards (ILMS) Coalition, which was launched in mid-2016. A Standards Setting Committee is working on a draft standard for land transfer, to be published for consultation later this year. It will focus on removing risk from the land

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transfer process and strengthening tenure security, land rights, investment and governments’ revenue-raising capabilities. “It’s about creating a global standard for things you need to know to do due diligence,” says Duncan Moss FRICS, principal consultant for Scotland at Ordnance Survey, and vice-chair on the ILMS committee.“But it’s also about protecting the seller. The longer-term aspiration is that governments start to listen to the demand for this type of information and invest in institutions and systems that will provide it.” Ultimately, there will also need to be some political force behind such initiatives. “Land management is the third most corrupt activity on the planet, so there are forces that don’t want the status quo to change,” says Robin McLaren FRICS, director of land information management consultant Know Edge, and co-author of guidelines on using FFP techniques in land administration published in 2016 by the UN Habitat Global Land Tool Network.“There has to be the political will to make this happen.” It also needs active participation from professionals working within these countries. This is not always a given. McLaren says there has been little support for FFP projects among surveyors in some countries. “It’s a common problem across sub-Saharan Africa,” he says. “Numbers of surveyors are very small and they don’t want to embrace new technologies they fear would diminish their role.” Those who resist may be harming their own long-term prospects. “Three quarters of the world does not have security of tenure,” says Moss. “Professionals have an opportunity to manage that process, to provide advice and to grow the industry across the developing world.” The potential upsides to tackling these issues are almost endless, says Baldwin. He sees the registration of land as a first step in the creation of a market that can stimulate investment and allow local people to use land and property assets to support economic development. It is easy to dismiss as unrealistic long-term aspirations like the eradication of poverty. But the application of surveying skills, alongside practical, lowcost technology and political commitment can make a huge difference to lives, the rule of law and social and economic stability in countries all over the world, and those far-off goals draw just a little bit closer. n STAY UP TO DATE with progress on ILMS at rics.org/internationalstandards

Age proves to be barrier for Scotland Land tenure issues can also create significant problems in countries with well-established registry systems and exemplary mapping. Scotland’s General Register of Sasines is the oldest of its kind in the world, dating back to 1617, but some estates have not changed hands for centuries, so there is not always a clear, up-to-date record either of ownership or boundaries. The Scottish Government is trying to establish beyond doubt who owns what, in part to increase the amount of public land available, a move that has angered some landowners. Campaigners seeking to encourage reform have also sought to raise awareness of instances of individuals exploiting the lack of transparency to acquire land through offshore companies. Registers of Scotland (RoS) is working on the digitisation of all land and property registration in the country, and was due to launch an online portal, ScotLIS, that should give surveyors and conveyancers access to all available property data, as Modus Asia went to press. RoS is also taking steps towards creating a new Land Register of Scotland to replace the General Register of Sasines by 2024. The first of these steps is Keeper-Induced Registration, which allows RoS to move titles from the General Register on to the Land Registry without an application from the owner. The second is a voluntary registration system.

competence

professionalism p essionalism

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Leading the way Leaders of the profession know that Continuing Professional Development (CPD) is essential to keeping skills and knowledge up to date and relevant. In joining the profession we have all committed to maintaining and enhancing our competence, knowledge and skills during the course of our careers. This commitment to continued learning and professionalism is a vital component in building our collective reputation with clients, regulators, governments and many other stakeholders. As an RICS member, you probably exceed the expected 20-hour minimum learning required each annual year. We recommend setting aside a small amount of time to record your professional development for the year, while continuing to promote the benefits of the profession to your fellow RICS members, staff and colleagues. The RICS designation represents leaders in the field from all over the world, and participating in CPD is an integral part in enhancing and protecting the reputation of our profession for many decades to come.

rics.org/cpd Q3 2016_MODUS A SI A

Careers / Business / Legal / Training

Foundations CAREERS Go on now go, walk out the door … but before you give your boss a piece of your mind, ask yourself: is that the best exit strategy?

HOW TO “RESIGN WELL”

Fed up? Been passed over for promotion? Derisory pay rise? People have resigned over a lot less, but what do you do when you really want to quit? Go in a blaze of glory, safe in the knowledge you will never see your boss again? Or do you bite your tongue, save your ire, and part ways with good grace? Tempting though it is to resort to the first course of action, “it’s hardly ever a good strategy”, cautions Rennie Dalrymple, managing partner at quantity surveyor Bruceshaw. “It’s a small sector, people move around; you can no longer guarantee never crossing paths with someone. What is certain is that bad exits stick in people’s minds.” Even if your resignation comes from a position of frustration – a lack of career development, perhaps, or a feeling of being stuck in a rut – Dalrymple counsels couching things more constructively. “I resigned from my previous role because I felt I needed to develop. This was the positive message I conveyed. Proof that it was the right thing to do is the fact that two of my former bosses are now my clients.” Once in a new position, many people discover that the grass is not always greener, and one benefit of an amicable departure is that it leaves the door open to return at a later date. Dalrymple has welcomed two people back in the last three years alone. “They would never have been able to return if we’d parted on bad terms,” he says. “Resigning is not an opportunity to take off your gloves,” adds Paul Payne, MD of construction recruitment firm One Way. “Aside from making you feel slightly better for a short

Timing “Don’t do it on a Friday at 6pm,” says Bruceshaw’s Dalrymple. “Resign midweek, so there’s time for the boss to react and talk to you about it.” Save it for the exit interview This is when you can air any actual grievances. Exit interviews are usually held with HR, so you don’t have to confront the boss, and good HR teams should take genuine concerns seriously. Stay committed until you leave Resigning is just step one. To really leave well, it’s important you stay committed during your notice period. Slacking off leaves just as bad an impression. 44 RICS.ORG/MODUS

period of time, leaving on bad terms will not actually help anything. You’ll be doing much more damage to your career.” Of course, some might argue it is the leaver’s responsibility to let management know if a part of the business is rotten, but even if this is the case, the advice is to be professional. “For some people, pointing fingers is a form of closure,” says Susy Roberts, founder of people development consultant Hunter Roberts. “But even if there is toxicity in the firm, it’s essential you stick to the facts, and say what’s caused you to resign. Assess whether it’s really about you or them. Sometimes, two people just don’t get on. If that’s the case, do you really want to drag a manager through a disciplinary for no real reason?” The exceptions to this rule are in cases of constructive dismissal, or when your position is untenable. Emma Burns, employment lawyer at Hugh James, says staff should not stay silent. “Too many people worry about burning their bridges, but it’s legally important to bring genuine claims.” Burns advises writing a “letter without prejudice, setting out grievances, saying that if a pretribunal deal can be reached, that’s the preferred option”. Such letters are much more common than people may think, she says, and are mostly successful. Clearly, in these situations, both parties seldom part on good terms, but deals can still be struck that at least guarantee good references. The rules are well established – resigning from your company is not too dissimilar to the breakup of a relationship. You should confront the issue but avoid playing the blame game, and try to stay amicable. You never know when you might want to pick up the phone to them again.

ON RICSRECRUIT.COM Walking into a new job? Follow these tips to make sure your new boss loves you from day one: rics.org/bosslove

WORDS PETER CRUSH ILLUSTRATION GIACOMO BAGNARA PORTRAIT NICK SELLS

GONE, BUT NOT FORGOTTEN

Foundations

TIMELINE

1999 Business and marketing, Canterbury Christ Church University 2003 Trainee stockbroker, Arjent, London

MY WAY

Ross Wheble MRICS

COUNTRY MANAGER, KNIGHT FRANK CAMBODIA, PHNOM PENH THE BEGINNING I grew up in Kent, and after studying business and marketing at Canterbury Christ Church University in 1999, my first job was as a stockbroker in London. But I just wasn’t passionate about stocks. Instead, I took a leap into real estate. In 2005 I began working in residential agency at Elizabeth Pryce, and a year later as an acquisitions surveyor at Danriss Group, which sponsored my master’s in property valuation and law at the Cass Business School. It was an RICS-accredited degree, so I could start the APC process straight away.

2005 Sales and lettings negotiator, Elizabeth Pryce

THE PRESENT We have a relatively small team, so you could say that my current role is similar to a traditional general practice surveyor. My main focus is on business development and client relationship management, and with the rapid pace of growth in Cambodia right now, we’re working on some very exciting projects. We’ve just completed a feasibility study for a“motorsport city”complex on the outskirts of Phnom Penh, and this year we’ll be launching a mixed-use development in the coastal city of Sihanoukville, which will include a five-star hotel.

2006 Investment acquisitions surveyor, Danriss Group, London 2008 Asset manager, Southend Borough Council; becomes a member of RICS

THE FUTURE There are some big challenges in Cambodia – in particular the lack of infrastructure and market transparency, which makes it more difficult to attract foreign direct investment. Nevertheless, there is huge potential here in infrastructure development, agriculture, hospitality, commercial, industrial and residential, which is why I’m excited about staying here for the foreseeable future. rics.org/rosswheble

2010 Vicepresident of research, Jones Lang Wootton, Malaysia

THE BREAKTHROUGH I felt I needed more experience in the public sector, so I continued the APC while working as an asset manager for Southend Borough Council. After qualifying, I was eager to move back into the private sector, but in 2010 the industry in the UK was still suffering from the effects of the Global Financial Crisis. Weighing up my options, I was browsing RICS Recruit one day, and saw a position on offer in Malaysia. I went for it, and three months later I moved out to work for Jones Lang Wootton. In 2013, I had a chance meeting with the managing “I was browsing RICS Recruit one day, saw director of Knight Frank Malaysia, who offered me an enormous role to lead the a position on offer in Malaysia, and went firm’s growing operation in Cambodia. for it. Three months later I left the UK”

2013 Country manager, Knight Frank Cambodia

Q4 2017_MODUS A SI A 45

YOU’RE AT THE TOP OF MY LIST

FIVE-POINT PRIMER

Search engine marketing (SEM) – also known as paid search or pay-per-click (PPC) – is a form of paid advertising used to increase traffic to a website and increase visibility in search engine results pages. Given that search engines are still – by far – the most popular way for customers to find local services, investing in SEM can be invaluable in the battle to win new business and stay ahead of the competition. The beauty of SEM is that it attracts targeted traffic. When prospective clients type in a search query directly related to the services you provide, SEM will enable you to connect with them at the exact point of need. If you have never paid much attention to how your business fares on search engine results pages, this is the best place to start. “Ask yourself what sort of phrases you would like to be found for,” suggests Joe Friedlein, founder of marketing agency Browser Media. “What are your areas of speciality? What is your geographical reach? These questions will help narrow your focus and develop a strategy.” You will need to know what keywords are being searched for by the people looking for your services. This can be done through Keyword Planner, a free tool provided with Google’s AdWords service.“The Keyword Planner will enable you to see the keywords your customers are typing into Google each month, so you can create a strategy around the things they

Type cast Find out what words your audience is using as search terms. Sort code Sift through the top keywords to identify the best ones for your needs. Local hero Don’t forget to reflect where your business operates in your targeted search terms. Seal of approval Signing up to RICS Find A Surveyor maximises the strength of your brand for an online audience. Prove it Use Google Analytics to measure how much traffic SEM is driving to your website. 46 RICS.ORG/MODUS

FIND YOUR BUSINESS After assessing its client base, Lionhill Surveyors decided that SEM would be a useful tool with which to reach customers. The north London firm contacted Google, which explained the types of products available, and it also spoke to RICS. “The team at Find a Surveyor were brilliant,” says director Martin Roth. “They offered advice and support and gave us a steer on what types of marketing packages to look into.” A key benefit for Roth and his team has been the ability to reach their target market and attract new customers. “In terms of enabling us to provide confidence in our service, the results have been excellent. SEM has also allowed us to increase awareness of other services we offer.”

WORDS LUCIE MITCHELL

BUSINESS Use search engine marketing to cost-effectively target new customers

are looking for,”says Ross Tavendale, partner at user experience expert Ideas Made. Matthew Kay, head of digital at marketing agency Klood Digital, notes that the keyword “surveyor”is searched for more than 70,000 times a month globally. “This doesn’t even take into account more niche, long-tail keywords such as‘surveyor near me’, and the thousands of other terms prospective customers might use. Based on those numbers, the market opportunity is huge.” Robert Stuart MRICS, director of Manchester-based Comprehensive Building Consultancy, wanted to target clients costeffectively at a time when they were ready to buy, so decided on SEM to help direct prospective clients to his website. He enlisted the services of a website designer who helped Stuart decide on the relevant keywords. “We put ourselves in the minds of our clients to consider the keywords and phrases they are likely to use when searching for a building surveyor. We further considered the location in which we operate and ensured these areas were also included.” Stuart also plans to sign up to RICS Find a Surveyor, as he believes corporate clients are more likely to use this service. “RICS is a reliable, established, trusted, professional body which breeds confidence,” he remarks. “We feel that clients requiring a commercial surveyor need this kind of reassurance.” One of the main benefits of SEM has been profit, he says. “We’re getting more money in than we are spending on marketing, and clients come to us having found the website as a result of their search criteria. We’re networking more and our name is definitely out there. Plus, we are more focused on where we are going as a company and how we wish to grow the business.”

Foundations

LEGAL 101

Many businesses opt for a mix of paid search and search engine optimisation (SEO) when investing in an SEM campaign. “The building blocks for most companies are PPC marketing combined with SEO,” explains Andy Atalla, founder of digital marketing agency Atom42.“This takes care of both the paid ads you see at the top of the page and the listings that appear below them.” To ensure SEM is profitable for you, Atalla recommends continuously tracking and analysing all campaigns and feeding

“We’re getting more money in than we are spending on marketing, and clients come to us as a result of their search criteria … Our name is definitely out there” ROBERT STUART MRICS Comprehensive Building Consultancy that information back into marketing. “This means that return on investment is constantly understood and always improving as new information comes in.” To better engage with clients and build your brand, it is a good idea to use SEM to answer clients’ questions, so you can solve their problems, rather than just focusing on the hard sell. This can be done by providing informative content, such as a blog, on your site. “Offer value to your users by giving them what they need, when they need it, and not just at the point of purchase,”says Atalla. “While your target keywords might be based on what people type in when they need a surveyor, it’s smart to also offer information on areas that might appeal to their needs before or after they look for your services.”

DIGITAL MARKETING FOR SMALL BUSINESSES Search engine marketing is just one dimension in how to raise your profile and attract customers online. Other key areas include developing an appropriate website, ensuring that the content you publish online

is useful and easy to find, and making the most of various forms of social media such as Twitter, LinkedIn and Facebook – each of which has a different audience, and can offer different opportunities for your business. RICS has published a tablet-friendly guide to digital marketing for smaller businesses. To read it, visit rics.org/ goingdigital

Sorry seems to be the easiest word CHARLES W ALLEN (above) and SCOTT D PETERMAN Partners, Orrick Herrington & Sutcliffe, Hong Kong “Never apologise, mister, it’s a sign of weakness,” advises John Wayne’s wizened army captain in She Wore a Yellow Ribbon. The Hong Kong government sees things rather differently. This July, it enacted an Apology Ordinance. Under the legislation, which comes into effect on 1 December, if a person expresses regret or sympathy, or says they are sorry about something, this will not be regarded as an admission of fault. Nor will it be generally admissible as evidence of liability. It will also not invalidate the sorry party’s insurance cover. Ordinance surveyed The law is a first for Asia, although several US states, as well as Canada, Australia and England, have done similar. But there have been differences in approach. For example, whereas Hong Kong’s legislation applies to civil liability, and to most proceedings apart from the criminal courts, other jurisdictions exclude certain liabilities, such as defamation and medical negligence. Hong Kong’s objectives are clear: to promote a change in culture. Apologies can often diffuse disputes and encourage settlements. The aim is to avoid expensive and time-consuming legal proceedings such as litigation, arbitration or adjudication. This is consistent with the policies of the Hong Kong courts, which require parties to try mediation before resorting to a trial.

Think big The legislation may be particularly significant after large-scale disasters. For instance, if the roof of a building collapses for no apparent reason, or scaffolding comes down during strong winds, causing mass injuries. The owners of the building, or the main contractors of the project, might well want to express sympathy towards the victims even before the causes are known and any wrongdoers identified. But they may hesitate, worrying their entirely sincere intentions will be used against them down the line. Principled position It will be relevant in a commercial context, too. What if a surveyor miscalculates and gives away a few inches of boundary land? The mistake is de minimis – too minor to warrant consideration – in the greater scheme of things, and not really worth a dispute. The ordinance will allow the professional to say sorry without inviting proceedings. Consumer champion The legislation is likely to be effective in consumer affairs as well. Let’s say a landlord refuses to consider certain classes of tenant, who see it as discrimination. The experience for the victims, forced to sue, may be more distressing than the original incident. For the property owner, it is a public-relations nightmare. The new law enables the landlord to make an apology that is not deemed an admission of liability, while the victims may appreciate being spared the need to sue for minimal damages on a point of principle.

Q4 2017_MODUS A SI A 47

CPD booster Related content from RICS

EARLY CONTRACTOR INVOLVEMENT David Mosey (above) of King’s College London on how early integration of design development and construction planning can improve outcomes. ››CPD hours: 1

PUTTING IT ALL TOGETHER PROFESSIONAL DEVELOPMENT Construction surveyors are well placed to fill the infrastructure commercial management skills gap. Do you have what it takes? Lead on The commercial manager is a senior role in infrastructure programme management. Sitting at the head of the commercial team and as a leadership figure, the commercial manager’s leadership qualities will shine through if they have the right knowledge and a talent for sharing their experience. The individual’s experience brought to such programmes has to be credible and it has to come with “soft” skills, too – a personal element vital for leading teams in a multidimensional infrastructure environment. Open book Those same soft skills are vital for building trust. A successful commercial manager will display openness and a sense of transparency, as well as pragmatism in any negotiating position. Research has shown that negotiation skills are vital for practitioners in infrastructure; they will frequently need to be able to strike deals with others.

DISTANCE LEARNING The RICS Academy offers a wide variety of detailed and self-paced distance-learning courses tailored to your specialism. To find out more, please visit academy.rics.org 48

RICS.ORG/MODUS

How to spend it Much of the success and failure of infrastructure projects is down to good or bad contract procurement. Commercial managers must be aware of the technicalities of different

procurement methods, but aligned with the programme requirements, outcomes and delivery objectives. Procurement should not be divorced from delivery. The commercial manager will appreciate the importance of relationships, of stakeholders’ different objectives and how these can all be aligned to mutual benefit and the delivery of common outcomes. Something to relate to That is not to say that the task of a commercial manager is all about building great friendships – far from it. Positive relationships are the aim, but not necessarily in an informal sense; it can be a tough world out there, after all. What is vital is a good, well-informed appreciation of what’s important for professionals at other points along the supply chain. For this, knowledge built from experience at all levels is a very useful attribute. If the client-supplier relationship is what it’s all about in infrastructure, then an appreciation of both sides is key. This means growing your understanding of both demand and supply chains, their differences and the interactions between them. RICHARD GRAHAM FRICS is leader for the RICS Commercial Management – Infrastructure Programme distance-learning course. Book your place at rics.org/managerinfradl

COMPLAINT HANDLING Fiona Haggett, RICS UK Valuation Director (above), examines professional guidance to assist surveyors when handling complaints. ››CPD hours: 1

JOINT VENTURES IN PROPERTY DEVELOPMENT RussellCooke’s David Webster (above) and Jennie Newton of Parisi Tax look at the advantages and disadvantages of joint venture structures. ››CPD hours: 1 SEARCH FOR all these webcasts and more at cpdfoundation.com

Foundations

SURVEYED Is there a book, website or app you couldn’t be without? Email editor@ricsmodus.com

SOFTWARE

INVEST IN SHARES Commercial property surveyors rely on accurate data, yet there are not many solutions available to help them sift through the vast quantity of figures available to find what they need. A lot of time can be spent digging around for accurate and reliable comparable evidence on

EVENTS

properties, as well as ringing colleagues to check numbers. Founded by Marcus Ginn and Andrew Peacock MRICS, networking platform Edozo helps surveyors to share property data. Members have a profile where they can list their career history and relevant lease and sale agreements negotiated. Published data can then be searched and accurate comparisons, or matches, can be drawn from these values. “Surveyors cited their frustration with having to double-check costly data sourced through traditional subscription databases as their main motive for wanting to share data on a different type of platform,” says Ginn. “Edozo replicates online what surveyors have always done – store deal evidence and share it with other professionals on request.” SUBSCRIPTIONS vary according to the client size and number of users, and start from less than £100 (HK$1,020) a month. edozo.com

ALSO THIS ISSUE

››Record important calls on your smartphone with the Call Recorder app, then play them back or send them to other devices. bpmob.com ››In Unravelling Sustainability & Resilience in the Built Environment, book authors Emilio Jose Garcia and Brenda Vale argue that sustainability in the built environment would benefit from a proper understanding of resilience. bit.ly/sustresil ››Watch Tesla and SpaceX founder Elon Musk talk about his grand plan to beat traffic gridlock in Los Angeles – by building a vast network of tunnels that automatically shuttle cars under the streets. bit.ly/tedtunnels ››Arcadis’ Industrial Capital Expenditure Survey investigates how and where global manufacturers are making investments in their production and other built facilities. Download the report at bit.ly/Arcadiscapex

Book RICS events online rics.org/events. For enquiries, call +852 2537 7117

HONG KONG

JAPAN

››RICS Awards, Hong Kong and Annual Dinner 23 March 2018 The RICS Awards, Hong Kong celebrates excellence, professionalism, achievement and overall contribution of projects, teams and development to our built environment. The awards are open to everyone working within the property profession. A presentation ceremony will be held at the RICS Hong Kong Annual Dinner. rics.org/hkawards

TAIWAN

››RICS Business Valuation Conference 1 December, Hong Kong This full-day conference addresses the significance of business valuation in financial markets, and identifies and responds to risks, compliance and regulatory concerns associated with business valuation. rics.org/bvconf

››Annual Dinner 2018 26 March 2018, Tokyo In celebration of 150th anniversary of RICS, we will host the first annual dinner in Tokyo in March 2018. Members and senior leaders of the built environment will gather to celebrate their achievements and successes. More details to be announced closer to the date.

››Annual Dinner 2018 March 2018, Taipei Built environment professionals are cordially invited to this annual gathering to celebrate their achievements and successes. This dinner also celebrates 150th anniversary of RICS. More details to be announced closer to the date. Q4 2017_MODUS A SI A 49

Mind map

WHAT EFFECT IS ‘FINTECH’ HAVING ON REAL ESTATE? Sigrid Zialcita, managing director, research, Asia Pacific, Cushman & Wakefield, Singapore

Fintech is driving the development of alternative office locations away from traditional CBDs.

In China and other developing markets, swathes of the population remain underserved by traditional banking. Fintech firms are exploiting this to provide people with a range of easy-to-access products.

The automation of labour across the finance sector will have potentially huge effects on the employment market, driving a substantial downsizing in the banking sector’s office occupancy over the medium- to long-term.

We estimate that fintech could reduce headcount in the finance sector by nearly 30% in the next decade. This translates to a reduction of 15-20m ft2 of office space in Asia’s financial centres alone.

ILLUSTRATION GIANMARCO MAGNANI

Banks have long performed as intermediaries for finance, but technology is rapidly disrupting their role. Fintech represents a better, faster and cheaper way of doing things.

RICS.ORG/MODUS

Summit London 23â&#x20AC;&#x201C;24 April 2018 Intercontinental London â&#x20AC;&#x201C; The O2 Global strategic thinking and practical solutions to the most pressing challenges of our changing world.

Join the discussion about this rapidly changing sector. Register now to benefit from the early bird rate at rics.org/wbef

CELEBRATING 150 YEARS OF SURVEYING SUCCESSES

Itâ&#x20AC;&#x2122;s our 150th anniversary. To celebrate, we want you to nominate the people and projects you admire most, as part of our Pride in the Profession campaign. RICS professionals have contributed extraordinary projects to society over the past 150 years and now itâ&#x20AC;&#x2122;s time to celebrate them.

Irene Barclay FRICS was the very first RICS-qualified female surveyor, who pioneered social housing and created 800 homes

Mark Clift FRICS led the Cyberport project that played a pivotal role in the economic development of the tech sector in Hong Kong

Nominate your example of outstanding surveying achievements now rics.org/150