RICS MODUS, Asia edition – Q1, 2016

  • View

  • Download

Embed Size (px)


#RICSModus, Asia edition, Q1 2016, the RISK issue. Risk versus reward: it’s an age-old conflict ever-present in the worlds of economics and finance. Many factors can contribute to the success or failure of a real estate development or investment and, as more investors pile into the market in search of a safe haven for their money, how far up the risk curve should they be travelling to secure a decent return?

Text of RICS MODUS, Asia edition – Q1, 2016

  • IN THIS ISSUE Asias future cities 16 / The real value of ideas 30 / How resilient is your city? 38


    Balancing risk with reward in real estate investment / 20



    S AS

    IA Q

    1 20

    16 RIC








  • Q1 2016_MODUS ASIA 03

    16 GROWING PAINSPlanning for Asias cities of the future

    20 COVER STORYGreater returns or stable income managing risk in real estate investment

    26 TAKING IT TO THE NEXT LEVELMeet the first RICS-certified BIM Managers

    30 WEALTH OF IDEASPutting a value on intellectual property

    34 TIME TO MIX THINGS UPHow can we sustain our insatiable appetite for the hard stuff?

    38 COME HELL OR HIGH WATERWhat constitutes a resilient city?

    42 NO GREAT SHAKESChristchurch making slow progress five years on from devastating earthquakes

    06 DIFFERENCE OF OPINIONIs Hong Kongs housing market now overinflated and ready to burst? We hear two points of view

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

    08 THINKING: RAEFER WALLISThe co-founder of AOO Architecture urges us all to join the rammed-earth revolution

    13 PRESIDENTS COLUMNMartin J Brhl FRICS ponders the true meaning of acting in the public interest

    The quality of the urban fabric is one of the biggest subjects for the next generation. It goes from the grand scale, with

    connectivity and infrastructure, right down to the buildingBEN CHA, GROSVENOR ASIA PACIFIC


    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.



    44-45 CAREERSNegotiating the right pay package; Arcadis Phil Moss FRICS

    46 BUSINESSAre your systems at risk from hackers?

    47 LEGAL 101Learning to swim in the flood of water-related services companies

    48 BRAIN GAINEffective risk management strategies

    50 MIND MAPAnshuman Magazine FRICS, Chairman of RICS South Asia, on Indias smart cities

    PLUS48 Events








  • A world of value in every square.

    To deliver exceptional value, we look at your real estate needs from every angle. Combining in-depth local knowledge with far-reaching globalinsights, our teams find the real estate opportunity thats right for you.Down to the last square metre.










    JLL ad_Modus Asia copy.pdf 1 11/23/15 12:50 PM

  • Q1 2016_MODUS ASIA 05

    @WeatherupSJ Interesting Article on @LinkedIn in this months Modus Excellent Tips and Ideas to make the most out of your Profile. #RICSmodus

    @Rachael_Hogg2 Reading through the latest issue of #RICSmodus over a nice leisurely Saturday morning coffee. Some really interesting topics to think over!

    @Oxford_Urban Congratulations on 50th issue of #RICSmodus magazine!

    @Mone_87 The only post I like to see through my door. @RICSnews #RICSmodus #RICSconstructionJournal #GeekMode

    @jakesoden Bit of reading in the garden while the suns out. @RICSnews @RICSCPD @RICSNorth #modus #buildingsurveying

    @CalcoQS Interesting to see how the #power sources have changed in recent years via @RICSnews

    @RICSnews // #RICSmodus

    FOR SUNDAY Editor Oliver Parsons / Art Director Christie Ferdinando / Deputy Editor Andy Plowman / Contributing Editor Alex Frew McMillan / Senior Designer Jess Campe / Creative Director Matt Beaven / Account Director Karen Jenner / Advertisement Sales Director Emma Kennedy / Head of Display Advertising Marlene Stewart / Asia Advertising ROF Media, Bryan Chan, +852 3150 8912, byan@rofmedia.com / Production Manager Michael Wood / Managing Director Toby Smeeton / Repro F1 Colour / Printers ROF Media / Cover Image Robert Frank Hunter / Published by Sunday, 207 Union Street, London SE1 0LN wearesunday.com / For RICS James Murphy and Kate Symons [UK] / Jeanie Chan [Asia]

    Join the

    debateIf 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

    BEARING IN MINDSir, With the distressing statistic that men in Britain aged 20 to 49 are now more likely to die from suicide than any other cause of death, I wonder if there is room in the pages of Modus to bring attention to the issue of mental health and our profession. Mental health is something we hardly discuss in public or private which is a significant part of the problem itself.

    I live with a mental health condition that was aggravated in 2015 by the stress of my APC final assessment. Deciding whether or not to tell your colleagues about your problems can be difficult, but the support of my employer, the Portman Estate, has been vital to my recovery.

    Undoubtedly more needs to be done to raise awareness of mental wellbeing. LionHeart offers services including trained counsellors and legal advice, while Modus provides a way to reach RICS members and encourage them to talk about the issue. As a profession we should be standing together to end the stigma of mental health-related problems.Greg Walsh MRICS, London


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

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

    TAKE GOOD CARESir, As a surveyor who worked for 37 years in a local authority, devising adaptations with social services, I have, even in retirement, a passionate interest in the subject of later-life housing (Search for a silver lining, p34, Q4 2015).

    In particular, having also cared for my late mother, it became clear that a large problem in keeping the elderly in their own home is giving authorised access to carers. Based on my experience, I have devised a control-centre-based access control system that is subject to a patent (pending).

    I would be most interested in any suggestions on how this project could be taken forward, perhaps to the benefit of LionHeart members?CR Newton AssocRICS, Cheltenham, UK

    MEMBERSHIP BARDSir, Readers may be interested to know that in November 2012, the RICS awarded the title of Honorary Chartered Surveyor to the Scottish poet, Robert Burns, the only posthumous membership granted by the Institution so far.

    As 2016 is the 400th anniversary of the death of the much greater English bard, William Shakespeare, it would be more than fitting for the RICS to grant him membership, too.Anthony H Ratcliffe FRICS, London

    Thank you for your letter. Although Modus has no official position on the relative merits of both these great British bards, we can at least argue that Burns training as a land surveyor probably better qualifies him for honourary membership than dear old Bill.




    Bubble trouble or just hot air? Whats your view? Join the discussion on LinkedIn at rics.org/linkedin, or email editor@ricsmodus.com




    EW A



    EW M



    N I




    N A







    IC IA

    N D



    Intelligence News / Reviews / Opinions / Reactions


    According to pAst experience, A bubble mArket includes high levels of gearing, multiple outstanding property mortgages, overheated speculative investment and a shortage of housing supply. Despite the recent rise in

    interest rates, the mortgage rate is still relatively low in Hong Kong, and is likely to only increase gradually. In addition, banks are running stress tests on the ability of mortgage applicants to pay, in which they assume an increase in rates of at least three percentage points.After the government imposed a set of cooling measures, the speculative market faded.

    What we see is strong and genuine demand for self-use and long-term investment, not signs of an overheating market. No residential mortgage loans were in negative equity as

    of September 2015, according to the Hong Kong Monetary Authority, and about 60% of properties in Hong Kong are mortgage-free. The unemployment rate remains low at 3.4%. The affordability of prospective buyers is still stable.T