Setting new standards in urban development

Shanghai Tower (the highest in the picture), a new landmark of Shanghai's financial hub Lujiazui, is nearly complete. Many RICS members have been involved in the project from the beginning. [Provided to China Daily]

Long-term plans crucial for finding a sustainable future path, says expert

Planning for the future has always been a major challenge for policymakers and city planners alike, be it in countries like the United Kingdom, China or big cities like Beijing, London and Shanghai. But with all eyes on Shanghai as the city readies to be a major global financial center by 2020, planners have often pondered on creating a sustainable vision/growth plan for the city 25 years from now and beyond.

Though most industry experts and planners would like to pass the buck on the issue and content themselves with answers like "it is not something that will happen during my lifetime", there are others like Sean Tompkins who are experts in addressing such questions.

Tompkins, chief executive of London-based Royal Institute of Chartered Surveyors, says long-term plans are crucial tools for policymakers, as they include the responsibilities and ethical standards that are essential for the future development of a global city.

RICS is a professional organization that sets and implements uniform global professional standards for land, property and construction.

Several of its members are involved in drafting the 2040 urban plan for Shanghai.

According to Tompkins, it is important to have a clear vision and perception about urban-rural integration before getting down to drafting a plan to make cities like Shanghai more livable.

In October, RICS launched "Future Global Cities", an initiative aimed to boost cities' abilities in innovation, strategic leadership, building resources and competitiveness in economic, political, cultural, social and technological areas around the world.

Affordability and livability may require higher standards in China, and the plans should include urban infrastructure like traffic, public housing and other welfare projects such as education and healthcare, said Tompkins.

By 2020, urban residents will account for about 60 percent of the total population in China and some 200 million people may migrate to cities or towns by that time, according to the national urbanization program released in March.

In China, urban planning has been getting more and more importance in recent years. During an urban planning meeting in October, Premier Li Keqiang said the country should use farsighted solutions to tackle today's problems. According to the blueprint for the country's urban planning, Shanghai will be an important cog in the global network of cities.

Wu Jiang, a senior urban planner and vice-president of the Shanghai-based Tongji University, said: "Shanghai is the gateway to China and will link the country with the rest of the world. It will also connect coastal cities to the hinterland, serving a role like that of London to Europe and New York to the United States. Though China is a vast country and will have more than one node, Shanghai is irreplaceable."

Tompkins believes that there will be different standards for most of the future global cities. "Benchmarks, rather than economic output, will be used to evaluate cities and the focus will be on the leverage urban development can bring to rural areas. This will also be the key for the well-being of the entire population in China," he said.

A not-for-profit, independent organization that stands for setting and upholding the highest global standards of professionalism, RICS seeks to find ways to cater to the public interest.

"For this our members must provide impartial, authoritative insights on key issues affecting business and society," said Tompkins.

The rapidly growing property market in China and the nation's ongoing urbanization plan have posed many challenges to secure, healthy and sustainable development as it involves many parties including policymakers, urban planners, developers, talent from property and environment protection sectors. It also includes challenges like cultural diversity and inclusiveness, he said.

Sally Sun, a China partner at global consultancy firm PricewaterhouseCoopers, said China's property sector is already showing signs of strain with slower sales, tight cash flow and financing pressures. Given the general lack of enthusiasm toward China this year, the market has become divided with most of the attention now directed toward bigger cities like Shanghai and Beijing, which have been the source of numerous successful investments by foreign funds over the last 10 years.

"While small and mid-sized Chinese developers are experiencing difficulties due to the government-mandated squeeze on debt financing, we are seeing an increase in the volume of private capital originating from Asian markets, led by a group of large Chinese developers that invest mainly in residential projects both regionally and globally", said Sun.

Tompkins says that this is something that developers and urban planners should take note of and use it to ensure higher standards and the long-term well-being of future projects.

"When people talk about big cities in China, they often tend to think of cities with the largest population, GDP output, and mushrooming high-rises. But we have observed that most of the Chinese cities are competing as economic engines. They are investing heavily to attract talent, improve the environment and public services. They are also looking at whether the city is affordable for its residents and the public services are friendly for urban habitation," he said.

Tompkins said that his organization has focused on developing RICS' brand from a traditional, trusted UK mark of property professionalism built on high standards and ethics since 1868 to one of international significance. This has been achieved through a combination of strong strategic marketing acumen and a systematic, market-driven approach to business planning, including pushing forward RICS' recognition in China.

Toward that end, RICS is now not just an organization that sets standards, but an organization that seeks to cooperate, rather than compete, with realty developers and other services providers in the property market, said Tompkins.

It is extremely important for trend setters to understand local markets and have clear insight into local demand, as it will come in handy while formulating standards that are applicable and made upon empirical data, said Tompkins. RICS has been cooperating with many Chinese institutions and organizations and managed to promote its standards and professional services, said Tompkins.

RICS has recently inked agreements with the China Land Science Society, the Trade Association of Shanghai Property Management, the Chongqing Real Estate Association, and the Yunnan Province Society for Geodesy.

China's demand for high-end talent has also helped in the fast growth of RICS' members in China. Since RICS began operations in China in 2004, its membership has swelled 10-fold in a decade.

Currently, some 3,000 RICS surveyors covering almost every field in property development and urban planning are operating in China.

Prominent RICS members include CBRE, DTZ, Savills, Cushman & Wakefield, and Jones Lang LaSalle.