The Way I see the Building & Real Estate Industry - A Local and - - PowerPoint PPT Presentation

▶
the way i see the building real estate industry a local
SMART_READER_LITE
LIVE PREVIEW

The Way I see the Building & Real Estate Industry - A Local and - - PowerPoint PPT Presentation

Apr 13, 2023 254 likes •755 views

The Way I see the Building & Real Estate Industry - A Local and Global Perspective of Accomplishments, Challenges and Directions for Surveyors Subtitle The Way I see the Building & Real Estate Industry - A Local and Global Perspective

slide-1
SLIDE 1

Subtitle

The Way I see the Building & Real Estate Industry - A Local and Global Perspective of Accomplishments, Challenges and Directions for Surveyors

slide-2
SLIDE 2

Date: March 6, 2009 (Friday) Time: 6:30 – 8:00pm Venue: Chiang Chen Studio Theatre, The Hong Kong Polytechnic University Speaker:

The Way I see the Building & Real Estate Industry - A Local and Global Perspective of Accomplishments, Challenges and Directions for Surveyors

  • Mr. Kam-hung Yu

Senior Manager Director Valuation & Advisory Services Greater China CB Richard Ellis FHKIS FRICS RPS(GP) FHIREA

slide-3
SLIDE 3 CB Richard Ellis | Page 3

Flowchart

1. Real Estate Development Process 2. Local vs Regional vs Global 3. Opportunities and Challenges 4. Our Future

slide-4
SLIDE 4 CB Richard Ellis | Page 4

Demand and Supply of Land

Demand for various uses: Housing, Working, Tourism… etc Change of Harbour (Reclamation) Change of Green Area

How to balance

???

Back to Flowchart

slide-5
SLIDE 5 CB Richard Ellis | Page 5

Public consultation Master planning / Economic planning Formulation of the land use pattern Development density control Site boundary formation Feasibility study of the land Land allocation via various methods Others: Town Planning Application Land administration Inputs

  • Land exchange, Lease modification,

Payment of Premium Main Professional Involved: Main Professional Involved: Planner General Practice Surveyor Land Surveyor

Town Planning

Back to Flowchart

slide-6
SLIDE 6 CB Richard Ellis | Page 6

Real Estate Financing and Site Acquisition

Carry out development feasibility study Form optimum development scheme Site Valuation Site acquisition Carry out financial analysis Preparation of budgets Formulate optimum capital structure Main Professional Involved: Main Professional Involved: Architect Financial Analyst General Practice Surveyor Building Surveyor Accountant

Back to Flowchart

slide-7
SLIDE 7 CB Richard Ellis | Page 7

Back to Flowchart

Development Design

Preparation of budgets and master plan Formulate design and layout Submit building plans Conduct Market Study

Main Professional Involved: Main Professional Involved: Architect Engineer Quantity Surveyor General Practice Surveyor Building Surveyor Arbitrator

slide-8
SLIDE 8 CB Richard Ellis | Page 8

Procurement

Tendering and Procurement Budgeting and Cost estimation Insurance and contractual advice

Main Professional Involved: Main Professional Involved: Quantity Surveyor Architect Engineer Arbitrator General Practice Surveyor Building Surveyor

Back to Flowchart

slide-9
SLIDE 9 CB Richard Ellis | Page 9

Development and construction project management Financial management – progress payment and claims settlement Design amendments and drawings submission Construction Monitoring – Time, Cost and Quality Final Account settlement Dispute settlement Main Professional Involved: Main Professional Involved: Architect Quantity Surveyor Engineer Building Surveyor Arbitrator

Project Development and Construction

Back to Flowchart

slide-10
SLIDE 10 CB Richard Ellis | Page 10

Marketing

Evaluate the market situation and conduct research Formulate the marketing plan Conduct marketing campaign Formulate Property Management Strategy

Main Professional Involved: Main Professional Involved: General Practice Surveyor Property and Facility Management Surveyor Property Agent / Marketing Expert

Back to Flowchart

slide-11
SLIDE 11 CB Richard Ellis | Page 11

Legal Formality

Obtain various approvals and documents from government Advice on various building control measures

Main Professional Involved: Main Professional Involved: Legal Professional Building Surveyor General Practice Surveyor

Back to Flowchart

slide-12
SLIDE 12 CB Richard Ellis | Page 12

Design optimum tenant-mix and maintain optimum tenant Profile Building and Facility Maintenance and Management Building Safety Refurbishment and renovation License application Enhancement the building value Corporate Real Estate management Main Professional Involved: Main Professional Involved: General Practice Surveyor Property and Facility Management Surveyor Building Surveyor

Asset Management

Back to Flowchart

slide-13
SLIDE 13 CB Richard Ellis | Page 13

Determine the needs for redevelopment Feasibility study on redevelopment Compulsory Sale Land Resumption Master Planning

Main Professional Involved: Main Professional Involved:

General Practice Surveyor Planner Building Surveyor Land Surveyor

Redevelopment

Back to Flowchart

slide-14
SLIDE 14

Local vs Regional vs Global

slide-15
SLIDE 15 CB Richard Ellis | Page 15

Local:

  • Private sector (Developers, Institutional Companies, Investors

and Consultancy firm)

  • Public sector (Government and quasi- government
  • rganization)

Regional:

  • China market
  • Other Asian cities

Global:

  • EMEA
  • North America

Others

Local vs Regional vs Global

slide-16
SLIDE 16 CB Richard Ellis | Page 16

Local Market

Local:

Last decades: real estate profession prospered due to blooming economy of Hong Kong, which was real estate- driven Last decades: real estate profession prospered due to blooming economy of Hong Kong, which was real estate- driven 1997 Asian Financial Crisis: the rate of economic growth dropped significantly and property market suffered from a long downturn period Demand for properties dropped significantly Oversupply of real estate-related professional services 1997 Asian Financial Crisis: the rate of economic growth dropped significantly and property market suffered from a long downturn period Demand for properties dropped significantly Oversupply of real estate-related professional services 2003: HK’s economy was recovered 2003: HK’s economy was recovered

Total No. of Transactions 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total no. of transactions (Domestic Units) 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Total no. of transactions (Office, Commercial and Flatted Factories) Domestic Total Office Commercial Flatted Factories Hong Kong GDP and GDP Growth 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year GDP (HK$ million)
  • 5
  • 3
  • 1
1 3 5 7 9 11 Year-on-year % change in nominal term
slide-17
SLIDE 17 CB Richard Ellis | Page 17

Local Market – General Practice Surveyor

Private sector: Developer, Investors and private consultancy and institutional firms Private sector faces “cut- throat competition” 75% 25%

Private Sector Private Sector Public Sector Public Sector

Public sector: Government and quasi-government organizations Higher demand of services by the public increase the daily duties and workloads of professionals in the public sector The job nature of the non-civil-service contract (“NSCS”) staff and civil servants is almost identical, but their remuneration package and benefits are significantly different Salaries of new civil servants are geared to their civil service experiences only, but not those in private sector

slide-18
SLIDE 18 CB Richard Ellis | Page 18

Local Market – General Practice Surveyor

  • Institutional Firms
  • Developers / Investors
  • Consultancy Firms

Private Sector Private Sector

  • Quasi-government Organization
  • Government Organization

Public Sector Public Sector

GP GP

Sales & Marketing Sales & Marketing Valuation, Consulting & Advisory Valuation, Consulting & Advisory Property Development Property Development Asset and Facilities Management Asset and Facilities Management

slide-19
SLIDE 19 CB Richard Ellis | Page 19

Local Market – General Practice Surveyor

General Practice Surveyor: General Practice Surveyor: Challenges: Challenges:

Rapid Changing Environment?? Rapid Changing Rapid Changing Environment?? Environment?? More Demand?? More Demand?? More Demand?? Strong Competition ?? Strong Strong Competition ?? Competition ?? Limited Job Opportunities??? Limited Job Limited Job Opportunities??? Opportunities???

slide-20
SLIDE 20 CB Richard Ellis | Page 20

Local Market – Planning and Development Surveyor P&D P&D P&D

Property Development Property Development Planning Planning

X Institutional Firms

  • Developers / Investors
  • Consultancy Firms

Private Sector Private Sector

  • Quasi-government Organization
  • Government Organization

Public Sector Public Sector Confidential Projects Confidential Projects Confidential Projects Confidential Projects Confidential Projects Confidential Projects

slide-21
SLIDE 21 CB Richard Ellis | Page 21

Local Market – Planning and Development Surveyor

  • Planning and Development Surveyor:

Planning and Development Surveyor:

Director of planning AO grade government official, with AO type training Developers / Investors Strategic director With foresight and planning and development knowledge Involve in planning stage as well as property development stage

Government Organization/ Quasi- government Organization Role of Surveyor Role of Surveyor

slide-22
SLIDE 22 CB Richard Ellis | Page 22

Local Market – Building Surveyor

Building Surveyor: Building Surveyor:

Private Private vs vs Public: Public:

  • Salary level of BS working in private

sector: about 3/4 of public sector in general

  • Private Practice was more active

since 1990’s when more owners know BS more and more jobs were

  • utsourced to private sector by the

Government

  • Jobs in private sector are more

diversify

  • Difficult to switch between private

and public sector

  • Experienced BS working in public

sector for long time may not able to catch up with the private sector practice since it requires diversified areas of knowledge

NOW NOW 1970 1970’ ’s s

Public Public Sector Sector Private Private Sector Sector Private Private Sector Sector Public Public Sector Sector

slide-23
SLIDE 23 CB Richard Ellis | Page 23

Local Market – Building Surveyor

Building Surveyor: Building Surveyor:

Challenges: Not many graduates choosing to be BS each year Not many new construction projects in Hong Kong

–Scope of work is narrow –Mainly deal with existing building such as building maintenance, renovation, heritage conservation, UBW removal, etc

Competition within the local market and among

  • ther professionals render BS projects become less

profitable Professionals are facing more challenges and difficulties than before

slide-24
SLIDE 24 CB Richard Ellis | Page 24

Local Market – Land Surveyor

Land Surveyor: Land Surveyor:

Difficult to switch between private and public sector since many practitioners in private sector are not of professional grade

LS LS LS

Public Public

Land Grant Land Grant Land Grant Land Administration Land Land Administration Administration Land Allocation Land Land Allocation Allocation Land Boundary Land Land Boundary Boundary

Private Private

Construction Work Construction Construction Work Work Land Boundary Land Land Boundary Boundary

Most Most

Public Sector:

Salary level is generally higher Jobs are more diversify

Private Sector:

Jobs have been developed slowly Mostly related to construction work

slide-25
SLIDE 25 CB Richard Ellis | Page 25

Local Market – Land Surveyor

Land Surveyor: Land Surveyor:

Challenges: Not many graduates take APC exam each year New construction works are limited since the Asian Financial Turmoil Limited job opportunities from the Government over the last ten years while private sector are only dealing with construction work Resources for LS in private sector are limited as many construction works are dominated by engineers or architects Limited channels for local professionals to catch up with new technologies

Too little new construction works?? Too little new Too little new construction construction works?? works?? No new openings from Government?? No new openings No new openings from Government?? from Government?? Limited graduates?? Limited Limited graduates?? graduates?? New Technologies?? New New Technologies?? Technologies??

slide-26
SLIDE 26 CB Richard Ellis | Page 26

Local Market – Quantity Surveyor

QS QS QS

Dispute Resolution Dispute Resolution Cost Planning Cost Planning

  • Institutional Firms
  • Developers / Investors
  • Consultancy Firms

Private Sector Private Sector

  • Quasi-government Organization
  • Government Organization

Public Sector Public Sector

OVER 80% OVER 80% Project Management Project Management Procurement Procurement

slide-27
SLIDE 27 CB Richard Ellis | Page 27

Local Market – Quantity Surveyor

Quantity Surveyor: Quantity Surveyor:

Mostly working in private sector (mostly consultancy firms, contractors and developers) Only very little government department is employing QS because many current government jobs are using contractors to do most of the procurement procedures Wide salary level range with average comparable to the public sector generally (depends on grading and experience) Longer working hours and wide scope of work when compare to public sector Difficult to switch between private and public sector Challenges:

  • Long working Hours and tough working environment Surveying

graduates not choosing QS

  • Number of construction projects in HK is decreasing in the past ten

years

  • Financial Tsunami causes suspension of construction projects
slide-28
SLIDE 28 CB Richard Ellis | Page 28

Local Market – Property and Facility Management Surveyor

Back to Flowchart

Asset Management Asset Management Facility Management Facility Management Property Management Property Management Shopping Centre Management Shopping Centre Management

Property Management Companies Developers / Investors Private Sector Private Sector

  • Quasi-government Organization
  • Government Organization

Public Sector Public Sector

Mostly Mostly Mostly

More jobs to private sector due to “Outsourcing of projects causes shrinking of public sector”

PFM PFM PFM

slide-29
SLIDE 29 CB Richard Ellis | Page 29

Local Market – Property and Facility Management Surveyor

Property and Facility Management Surveyor: Property and Facility Management Surveyor:

Challenges:

Slow growth Not many development in HK?? Slow growth Slow growth Not many Not many development in HK?? development in HK?? Cost cutting Limit the potential of expansion of industry?? Cost cutting Cost cutting Limit the Limit the potential of expansion of potential of expansion of industry?? industry?? Low starting salary unattractive to graduates Low starting salary Low starting salary

  • unattractive to

unattractive to graduates graduates

slide-30
SLIDE 30 CB Richard Ellis | Page 30

Regional and Global Market

1. Rio Hotel 2. Galaxy StarWorld 3. Wynn Macau 4. Grand Lisboa 5. Crown Macau 6. The Venetian 7. MGM Grand Macau 8. Ponte 16 9. Galaxy Cotai Mega Resort 10. City of Dreams 11. One Central Macau 12. Oceanus 13. Nam Van 14. Luxury Residential at Taipa 15. Macau Studio City 16. Four Seasons

All of these were completed in the past few years

1 1 10 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 16 16 15 15 14 14 13 13 12 12 11 11

Macau’s blooming market for the past few years with lots of mega projects completed such as residential, retail, office, hotels, casinos etc

slide-31
SLIDE 31 CB Richard Ellis | Page 31

Regional and Global Market - General Practice Surveyor

China & China & Other Cities Other Cities NOW NOW 1970 1970’ ’s s Hong Hong Kong Kong Hong Hong Kong Kong China & China &

  • ther cities
  • ther cities

General Practice Surveyor: General Practice Surveyor:

slide-32
SLIDE 32 CB Richard Ellis | Page 32

Regional and Global Market – General Practice Surveyor

Vietnam India Malaysia Korea Middle East Europe US Macau Taiwan Others….

China

Regional and Global Market Regional and Global Market

General Practice Surveyor: General Practice Surveyor:

Unfamiliar with China market, i.e. cultural aspect, design aspect…etc Unfamiliar with China market, i.e. Unfamiliar with China market, i.e. cultural aspect, design aspect cultural aspect, design aspect… …etc etc Different planning and property development policy in different province Different planning and property Different planning and property development policy in different province development policy in different province

IPO valuation M & A Market feasibility study Others

slide-33
SLIDE 33 CB Richard Ellis | Page 33

Regional and Global Market – Planning and Development Surveyor

Planning and Planning and Development Surveyor: Development Surveyor:

Developers or investors in HK will have more projects in China bring more

  • pportunities to P&D

surveyors Planning and development is essential for every development But there is just China Real Estate Appraiser in China who are responsible for valuation only, but not planning and development P&D surveyors from HK has an important role

More Developments in China More Opportunities

slide-34
SLIDE 34 CB Richard Ellis | Page 34

Regional and Global Market – Building Surveyor Building Surveyor: Building Surveyor:

Lower or similar salary level in other regions Not much working opportunities in other regions Surveyors in HK may not be familiar with the statutory requirements, laws, regulations and ordinances in other markets including Mainland as well as Southeast Asia

Opportunities? Opportunities? Wider Scope of Works Wider Scope of Works

Project Management Project Management Building Services Building Services

slide-35
SLIDE 35 CB Richard Ellis | Page 35

Regional and Global Market – Land Surveyor

Land Surveyor: Land Surveyor:

Due to legal issues, HK professionals are not permitted to handle geographical information of China and hence cannot practice in China Salary level to work in other regions are not much higher than in Hong Kong

South-east Asia Middle-east Asia Others….

China X

Regional and Global Market Regional and Global Market

slide-36
SLIDE 36 CB Richard Ellis | Page 36

Regional and Global Market – Quantity Surveyor Quantity Surveyor: Quantity Surveyor:

Other cities/countries (including PRC and America) starts to adopt the HK(British) procurement system Blooming economies in the emerging market creates lots of construction projects, hence, job opportunities Lack of professionals in the area of procurement in other regions Foreign companies request HK professional to be project management roles Diversify scope of works and services

South-east Asia – Thai, Viet, Singapore… Middle-east Asia – UAE (Dubai) Others (EMEA, North America)…. China Regional and Global Market Regional and Global Market

slide-37
SLIDE 37 CB Richard Ellis | Page 37

Regional and Global Market – Property and Facility Management Surveyor

Property and Facility Management Surveyor: Property and Facility Management Surveyor:

Financial crisis caused suspension of completion of projects, hence, no new management position in short term Foreign markets developers would only employ HK professionals as management levels or senior levels Hong Kong professional have advantages because of having higher ethical standards employ HK professionals as senior management levels Much development projects are to be completed in the future in PRC as well as other emerging markets

slide-38
SLIDE 38

Opportunities

and Our Future

slide-39
SLIDE 39 CB Richard Ellis | Page 39

Opportunities and Our Future

Rising Expectations Rising Expectations Rising Expectations New Challenges New Challenges New Challenges Demand from different sectors Demand from Demand from different sectors different sectors Demand from wider geographical origins Demand from wider Demand from wider geographical origins geographical origins Needs for multilateral professional development Needs for multilateral Needs for multilateral professional development professional development

Create Opportunities

slide-40
SLIDE 40 CB Richard Ellis | Page 40

Opportunities and Our Future – Local – General Practice Surveyor General Practice Surveyor: General Practice Surveyor:

Speed up of urban and rural renewal Speed up of the public and infrastructure projects (e.g. new railway projects and regional highways as well as the development of HK-Zuhai-Macau Bridge) More mega projects such as large shopping mall To restrict the preparation and submission of planning applications to professionals only Future trend: Service-oriented Require contribution of professional young surveyors

  • Better planning of development
  • Price setting
  • More advanced leasing and marketing

techniques and agency services

  • Facility management and asset

management

  • B

Better planning of development etter planning of development

  • Price setting

Price setting

  • More advanced leasing and marketing

More advanced leasing and marketing techniques and agency services techniques and agency services

  • Facility management and asset

Facility management and asset management management

slide-41
SLIDE 41 CB Richard Ellis | Page 41

Opportunities and Our Future - Local

Building Surveyor: Building Surveyor:

Mandatory Building Inspection Scheme Classification of Building State Allocation of more resources to building maintenance, construction and infrastructures by Government creates more job opportunities during the financial turmoil Public involves more in building maintenance works awareness of the importance of BS has been increased

Quantity Surveyor: Quantity Surveyor:

Insufficient supply of QS Government creates more job opportunities during the financial turmoil by increasing its expenditure in building maintenance, construction and infrastructure more resources Diversification of scope of work including project management, contract management, dispute resolution, etc

slide-42
SLIDE 42 CB Richard Ellis | Page 42

Opportunities and Our Future - Local

Property and Facility Management Surveyor: Property and Facility Management Surveyor:

Stable growth in long term (size of the industry depends on number of existing units) Intrusion of Green Management concept Seek more mutual recognition in the industry Seek for eligible recognition as Registered Professional Housing Manager (RPHM) Extend business to Mainland industry

Land Surveyor: Land Surveyor:

New technologies create new job opportunities and widen scope of works Insufficient professional grade LS in long term Geographical Information System and 3D Laser Scan Modelling New job opportunities created by the government

NEW TECHNOLOGIES NEW NEW TECHNOLOGIES TECHNOLOGIES

slide-43
SLIDE 43 CB Richard Ellis | Page 43

Opportunities and Our Future - Regional

Regional: Regional: General Practice Surveyor: General Practice Surveyor:

Living standard of China is improving demand in property market Developers or investors in HK will have more projects in China bring more opportunities to HK surveyors HK surveyors have wider vision and can solve the problem with flexibility More innovative

Planning and Development Surveyor: Planning and Development Surveyor:

Planning and development in China is not comprehensive, but it is essential for every development bring more opportunities to HK surveyors Lots of HK developer would like to enter into China market which create lots of opportunities to HK surveyors

slide-44
SLIDE 44 CB Richard Ellis | Page 44

Opportunities and Our Future - Regional

Building Surveyor: Building Surveyor:

Conduct due diligence More construction project in Mainland more wider range of works Diversify scope of works and services

Quantity Surveyor: Quantity Surveyor:

Other cities/countries (including PRC and America) starts to adopt the HK(British) procurement system Blooming economies in the emerging market creates lots of construction projects, hence, job opportunities Lack of professionals in the area of procurement Foreign companies request HK professional to be project management roles Diversify scope of works and services

slide-45
SLIDE 45 CB Richard Ellis | Page 45

Conclusion & Suggestion

Specification Specification Diversification Diversification

+

Continuous Learning and Sustainable Development Life-Learning / Advancement of Professionalism Professional Diversification / Specification Creativity Languages Export of Professionalism

slide-46
SLIDE 46

Thank you Thank you

Acknowledgement Acknowledgement The Hong Kong Institute of Surveyors The Hong Kong Institute of Surveyors The Hong Kong Polytechnic University The Hong Kong Polytechnic University

  • Prof. Barnabas Chung
  • Prof. Barnabas Chung
  • Mr. Edwin Tsang (P&D), Chairman of PDD, HKIS
  • Mr. Edwin Tsang (P&D), Chairman of PDD, HKIS
  • Mr. Gary Yeung (PFM), Vice
  • Mr. Gary Yeung (PFM), Vice-
  • chairman of HKIS

chairman of HKIS

  • Mr. James Law (BS), Head of Building Consultancy Services (CBRE)
  • Mr. James Law (BS), Head of Building Consultancy Services (CBRE)
  • Mr. Lesly Lam (LS), Honorary Treasurer of HKIS
  • Mr. Lesly Lam (LS), Honorary Treasurer of HKIS
  • Mr. K. W. Leung (GP), Director of Valuation (CBRE)
  • Mr. K. W. Leung (GP), Director of Valuation (CBRE)
  • Mr. Stephen Lai (QS), Managing Director of RLB
  • Mr. Stephen Lai (QS), Managing Director of RLB
slide-47
SLIDE 47 CB Richard Ellis | Page 47

Q & A Q & A

slide-48
SLIDE 48 CB Richard Ellis | Page 48

chart

1. Real Estate Development Process 2. Local vs Regional vs Global 3. Opportunities and Challenges 4. Our Future