The RICS & Macdonald & Company

ASIAN RewARdS & ATTITudeS SuRvey 2011

EXEC

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PROPeRTy & THe BuILT eNvIRONMeNT

ForewordThis time last year, I wrote “it has been a year of swings in global and local sentiment… and there is little to suggest this era of uncertainty is about to change”. Twelve months on and as we publish the results of our sixth Asia Salary & Benefits Survey, a similar message would not be out of place. It is very easy to find bad news in every media source or piece of official economic data but as with twelve months ago, this would be to ignore all the positives that are apparent across Asia.

undoubtedly, employees in development and consultancy sectors have benefitted from higher salary increases in 2011, with the impetus for growth continuing to come from development pipelines in China predominantly. Professional qualifications are increasingly a feature of the mainland real estate professional and their remuneration is accelerating as a result. In fact, those respondents with an RICS qualification earned 43% more than those with no professional qualification.

Happily, 2011 saw a significant decrease in the % of respondents who experienced redundancy and an impressive 82% of respondents reported they were fairly or very satisfied with their current employment. In contrast, the economic indicator question drew responses from 35% of people who felt their area of activity would improve in the next 12 months, down from 56% in 2010.

Macdonald & Company hopes that you enjoy reviewing these results and would like to express its thanks to both RICS and HKIFMA for their support. Our consultants are available to offer interpretation and explanation of these findings and are able to offer in depth research into any area of the survey. If you have a particular geographical or sector query, please contact any of our team to discuss how we can produce bespoke research tailored to your specific requirements.

william Glover, International director Macdonald & Company Property Limited, November 2011

For further information or analysis please contact:e: salarysurvey@macdonaldandcompany.com or call our Hong Kong office.

A comprehensive online statistics package for the 2011 survey is available at a cost of USD $999.

In addition to the Asia, Macdonald & Company & RICS undertake remuneration and attitudes surveys for the following regions: uK, Middle east, Africa and europe, all reports are available at www.macdonaldandcompany.com

The results have been collated and analysed by BluSky Research (a research trading name of BluSky Marketing Limited – www.bluskymarketing.com) for the second year.

Designed by Born Creative UK Limited. www.born-creative.co.uk

Introduction Now in its sixth year, the Annual RICS and Macdonald & Company Asian Rewards & Attitudes Survey is the most comprehensive survey undertaken for the property sector.

The survey continues the success of earlier years. 1291 Asian real estate professionals participated online in August and September 2011, making this the largest and most comprehensive survey of its type.

Thanks this year must go to RICS and HKIFMA who actively promoted their involvement in the survey amongst their members. we would also like to thank all the participants who took time to complete the online survey.

Besides statistics on current salaries, recent salary increases, bonuses and employment package benefits, the results give insight into wider issues that are important to real estate professionals in their role and their attitudes toward employment. This executive summary sets out the key findings of the survey.

For the 3rd year, we can now provide an easy to use online access to the full results, for more information contact Macdonald & Company.

2011 executive Summary

0

320

640

960

1,280

1,600

769

1,226

1,090

1,536

949

1,291

• Average annual base salary in uSd is $89,851 (versus $95,554 in 2010), predominantly driven by less senior

respondents to the survey versus last year

• Those with a RICS qualification earn 43% more than those who are “not professionally qualified”

• 47.7% of respondents received a base salary increase (versus 48.1%*), with the average salary increase for those

respondents being 11.1% (versus 10.4%*)

• 54.1% of the survey respondents received a bonus (versus 65.6%*) and the average bonus per year was uSd$24,954

(versus $28,791*)

• Only 5% of respondents have been made redundant in the last 12 months (down from 7%*)

• 70% of those made redundant have already found new jobs (down from 85%*)

• 80% were paid a redundancy settlement equal to or more than the contractual amount (equal to last year*)

• Health insurance 67%, 5 day working week 65% and mobile phones 51% are the most popular additional benefits

provided in the industry.

• The majority of survey participants (82%, up 5%*) are fairly or very satisfied with their current employment.

• 35% of respondents believe that the property market will get better over the next 12 months (versus 56%*), while 48%

believe it will remain unchanged (versus 39%*).

*In comparison to 2010

2007 2008 20092006

Key Findings

Research Sample Profile

Response Rate TotalIn its sixth year, with 1291 respondents, the survey remains the most robust and respected survey of its kind. The response rate has risen by 36.0% on the previous year, and is the second highest response total over the last six years.

The RICS &

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years’ experienceHow many years’ experience do you have in your discipline?

www.macdonaldandcompany.hk

0%

5%

10%

15%

20%

25%

30% 27%25%

20%

12% 12%

16%

19%

28%

21%

14% 14%

17%19%

22%

19%18% 18%

22%

Up to 4 5-10 11-15 16-20 Over 20

2010 2011

The general level of experience of the sample continues to be more senior this year with 40% of respondents communicating 16 years plus experience versus 31% last year.

200920102011

03

+36.0% yr/yr

expatriate workerwhere are you from and when did you arrive?

Level of Responsibilitywhat is your level of responsibility within the organisation for which you work?

The general level of responsibility or seniority of the sample has fallen a bit, with 50% either being a Manager/Associate or Associate director/vice President versus 58% in 2010.

The majority of respondent who are expatriate workers are from europe/uK and arrived to their current normal place of work largely between 2007 to 2010.

0%

8%

17%

25%

33%

42%

50%

27%

35%

13%

18%

7%

19%

42%

16%18%

5%

26%

40%

10%

17%

7%

0%

9%

17%

26%

34%

43%

51%

60% 57%

28%

7% 6%2%

55%

30%

7% 6%2%

46%

34%

9% 9%

3%

Assistant/ Analyst

Manager/Associate

Associate Director/VP

Director Principal/Owner

years with employer Approximately how many years have you been with your present employer?

55% of respondents have been with their present employer 3 years or more, up from 45% last year.

Up to 2 3 to 6 7 to 10 11 to 20 Over 20

04

Europe/UKHong KongAmericas

MalaysiaPRC

Australasia

1980!

1981!

1982!

1983!

1984!

1985!

1986!

1987!

1988!

1989!

1990!

1991!

1992!

1993!

1994!

1995!

1996!

1997!

1998!

1999!

2000!

2001!

2002!

2003!

2004!

2005!

2006!

2007!

2008!

2009!

2010!

2011!

200920102011

200920102011

www.macdonaldandcompany.hk

Average Asian Real estate Salary (uS$ per year)what is your current annual base salary in uS$?

Average Salary (uS$pa): Region what is your current annual base salary in uS$?

Average Salary (uS$pa): Region by RICS what is your current annual base salary in uS$?

The average base salary of a Real estate professional in Asia is uS$89,851 per year. Taking this view and in comparative terms the average salary has decreased by 6.0% versus the previous year, which could also be attributed to the drop in percentage of respondents with more experience and responsibility within an organisation.

-6% yr/yr

Those working in Singapore are the highest paid in the region with an average annual salary of uS$123.8K (up from uS$103.1K in 2010). Those working in the People’s Republic of China (PRC) have seen a significant decrease in their annual base salary, now uS$68.3K down from uS$97.3K or a decrease of 29.8% since 2010.

Those working in the Asian Real estate market with a RICS qualification earn 42% more than those who are “not professionally qualified” (uS$106.9K versus uS$75.1K). while on a regional basis those working in Singapore with a RICS qualification on average earn the most (uS$172.3K) followed by those working in Hong Kong (uS$104.6K).

Average Asian Real estate Salary05

200920102011

200920102011

200920102011

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$0

$16.67

$33.33

$50.00

$66.67

$83.33

$100.00

$78.000

$95.554$89.861

$0 $18.571 $37.143 $55.714 $74.286 $92.857 $111.429 $130.000

$89.851

$123.778

$117.969

$68.344

$51.276

$95.554

$103.118

$98.652

$97.331

$26.653

$78.100

$104.200

$97.000

$75.700

$29.800

Average All

Singapore

Hong Kong

PRC

Malaysia

$0 $28.571 $57.143 $85.714 $114.286 $142.857 $171.429 $200.000

$106.94

$172.28

$104.58

$102.41

$70.59

$101.83

$127.54

$103.06

$80.22

$39.25

$90.07

$123.38

$106.31

$61.66

$50.18

Average All

Singapore

Hong Kong

PRC

Malaysia

Annual SalaryIs your salary paid over:On average 71% of respondents salaries are paid over 12 months, with the highest being Malaysia (89%) and the lowest The Peoples Republic of China (PRC) (59%).

0%

13%

26%

39%

51%

64%

77%

90%

71%

89%

59%

71%66%

29%

11%

41%

29%34%

Average All Malaysia PRC Hong Kong Singapore

06

13 Months12 Months

Average Salary US$ pa 2009 2010 2011 Yr/Yr

All participants $78,089 $95,554 $89,851 -6.0%

CeO/Md/Head NA NA $229,633 NA

CFO/Financial director/Controller NA NA $149,091 NA

CRe Transactions NA NA $137,830 NA

Fund Management $156,012 $135,797 $135,251 -0.4%

Commercial Agent $67,908 $118,167 $120,650 2.1%

Property Asset Management $129,333 $123,566 $119,209 -3.5%

Project Management $96,535 $90,931 $98,523 8.3%

Facilities Management* $66,665 $85,151 $93,558 9.9%

Sales & Marketing NA NA $92,335 NA

Architect/design $82,750 $95,375 $91,278 -4.3%

Claims & dispute Resolution NA NA $88,379 NA

Leasing $80,577 $95,038 $77,459 -18.5%

Consultant** $82,219 $120,435 $74,816 -37.9%

Interior design NA NA $74,500 NA

Quantity Surveying $42,376 $69,256 $60,877 -12.1%

New Build/Construction NA NA $59,300 NA

engineering NA NA $57,639 NA

valuation $37,883 $53,282 $54,197 1.7%

Building Surveying $45,735 $43,949 $42,801 -2.6%

* 2011 is an average of Facilities Management Service Provider and Facilities Management In-house** 2009 and 2010 title was General Practice / Consultancy

Those working in CeO/Md/Head earn the highest average salaries in the Asian Region securing uS$229.6K per year, with CFO/Financial director/Controller (uS$149.1K), CRe Transactions (uS$137.8K) and Fund Management (uS$135.3K, down 0.4% from the previous year) following behind.46.5%) and Corporate Real estate (uS$113.6K, down 13.5%) following closely behind.

(base <100; base < 20)

Average Increase: Age what (if any) was the % increase of your salary?

www.macdonaldandcompany.hk

Of those who received a base salary increase, respondents aged between 25-30 years received the highest (15.0% on average) followed by the 18-24 years age group (12.8%).

Up by 6-10%15.8% (-3.8%)

Up by <5% 16.4% (+3.9%)

Change to Salary at last reviewwhat change if any was made to your Annual Base Salary at your last pay review?

47.7% of respondents secured a base salary increase, down slightly from 48.1% last year, while those who received a reduction in salary dropped to 1.7% versus 2.5% in 2010. The average salary increase for those respondents who received a base salary increase was 11.1% (versus 10.4% in 2010).

Reduced 1.7% (-0.8%)Up not disclosed

2.1% (0.1%)

Unchanged21.0% (-8.6%)

Up by 11-15%5.1% (-0.8%)

Up by 15% + 8.3% (+0.4%) No response

29.6% (+9.9%)

Nil 45.9% (+11.5%)

$5.0K - $9.9K 9.9% (-2%)

$10.0K - $19.9K 11.2% (-3.7%)

$20K plus 17.2% (-5%)

Nil 45.9%(+11.5%)

Up to $2.49K 8.2% (+0.7%)

$2.5K - $4.9K7.5% (+1.7%)

54% of respondents received a bonus (down from 65.6% last year) and the average bonus they received was uS$24,945K (down from uS$28,791), those who did not secure a bonus has risen to 45.9% (from 34.4% last year).

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0%

2.4%

4.9%

7.3%

9.7%

12.1%

14.6%

17.0% 16.1%

14.4%

12.2%

10.4%

8.6%9.3%

11.1%

13.9%

10.3%

8.6%

6.8%

5.3%

12.8%

15.0%

11.8%

8.1%7.1% 7.3%

18-24 25-30 31-40 41-50 51-60 61+

Annual Bonuses Received (uS$’000 per year)

what was the approximate value of your annual bonus (or bonuses) over the last 12 months?

Bonuses

200920102011

Salary continues to be most important factor when it comes to job satisfaction (77%, down from 84% last year), followed by Management Style (70%, down from 74%), Career Progression (66%, down from 69%) and Responsibility (65%, down from 69%).

0% 13% 26% 39% 51% 64% 77% 90%77%

70%

66%

65%

63%

62%

56%

55%

54%

39%

38%

35%

30%

24%

84%

74%

69%

69%

65%

59%

56%

54%

40%

40%

24%

22%

77%

71%

71%

72%

67%

63%

61%

60%

36%

36%

31%

27%

Salary

Management Style

Career Progression

Responsibility

Range of Interesting Work

Job Security

Employer Status

Work Environment

Training/ Personal Development

Location

Range of Clients

Job Title

Latest Technology

Travel Opportunities

08

0% 10% 20% 30% 40% 50% 60% 70%67%

65%

47%

30%

24%

22%

22%

22%

18%

15%

13%

11%

10%

9%

9%

9%

8%

7%

7%

5%

2%

4%

4%

67%

51%

35%

24%

18%

21%

15%

10%

8%

13%

5%

11%

7%

10%

6%

10%

6%

Health Insurance

5 Day Working Week

Mobile Phone

Performance Related Bonus

Dental Insurance

13 Month Guaranteed

Housing Allowance

Other Insurances

Pension/Gratuity

Flights

Flexitime

Company Car

Lunches/LVs

Paid Overtime

Profit Share

Tax Efficiency Scheme

Relocation Package

School Fees

Share option Scheme

Club Membership

Sign on Bonus

None

Other

Health Insurance (67%), 5 day working week (65%), and Mobile Phone (47%) are the most popular employee benefits provided, while interestingly there was a drop in those respondents who did not receive any employee benefits (4% down from 10% in 2010).

employment Benefitswhich of the following additional benefits are included (received as new or last as benefits) in your current package?

Important Job AspectsHow important are each of the following to you in your job?

20102011

20102009

2011

Market Attitudes

www.macdonaldandcompany.hk

employer of Choicedo you consider your current employer an employer choice?

09

The higher percentage of respondents who consider that there present employer is an “employer of choice” are Government (79%), Practice/Consultancy/Advisors (72%), and Financial Institutions (72%). whereas ReIT (58%), FM Service Providers (55%) and Retail (48%) have the lowest.

0% 11% 23% 34% 46% 57% 69% 80%79%

72%

72%

70%

67%

64%

63%

60%

58%

55%

48%

21%

28%

28%

30%

33%

36%

37%

40%

42%

45%

52%

Government

Practice/Consultancy/Advisor

Financial Institution

Education

Development/Investment/Property Company

Non-profit making organisation

Contractor

Occupier

REIT

FM Service Provider

Retailer

NoYes

The RICS &

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68% of respondents consider that there present employer is an “employer of choice”.

Yes 68% (+4%)No

32% (-4%)

10

0% 11% 23% 34% 46% 57% 69% 80%65%

63%

63%

60%

55%

53%

52%

51%

48%

45%

41%

27%

30%

68%

73%

71%

65%

52%

59%

58%

51%

45%

49%

30%

29%

68%

68%

62%

51%

56%

59%

53%

47%

46%

29%

Leadership/Management Style

Business Vision & Future Potential

Reward & Recognition

Company Values/Ethics

Work life Balance

Promotional Opportunities

Brand Values

Personal Development Culture

Internal Communication

Colleagues/Social Dimension

Support in gaining your qualifications

C.S.R. Policy

Relocation Possibilities

employer of ChoiceHow important are the following factors in making your current employer an employer choice?

Job SatisfactionHow satisfied overall are you with your current job?

Of those who consider that they are working for an “employer of choice”(68% of respondents), the key factors are leadership/management style (65%, down from 68% last year), business visions & future potential (63%, down from 73%) and reward & recognition (63%, down from 71%).

The majority of survey participants (82%, up 5% versus last year) are fairly or very satisfied with their current employment. 17% say that they are not satisfied (down 5% from last year).

20102009

2011

Fairly, 60%(+6%)

Very, 22%(+4%)

Not Very, 14% (-5%)

Not at all3% (-1%)

Reasons for leaving employerIf you were to leave your present employer, what would your main (important) reasons be?

Salary continues to be the most likely reason for leaving an employer (81%, down from 83% the previous year), followed by Career Progression (74%, up from 72%), Better Benefits Package (66%), and a better Management Style (63%, down from 64% last year).

economic Activity ChangeIn your chosen professional activity, do you anticipate economic activity in the next 12 months to:

35% of respondents anticipate the economic activity to increase (down from 56% last year), while 48% believe it will remain unchanged (up from 39%).

0%

14%

28%

42%

56%

70%62%

6%

32%

56%

5%

39%35%

17%

48%

0% 18% 36% 54% 72% 90%81%

74%

66%

63%

57%

55%

51%

50%

38%

32%

31%

27%

26%

24%

21%

20%

18%

83%

72%

64%

58%

60%

49%

48%

46%

31%

32%

21%

15%

77%

71%

64%

57%

59%

50%

51%

51%

30%

33%

23%

Salary

Career Progression

Better Benefits Package

Management Style

Range of Interesting Work

Responsibility

Job Security

Working Environment

Training/Personal Development

Range of Clients

Location

Change of Career

Work in a different Country

Redundancy

Travel Opportunities

To start your own Business

Latest Technology

20102009

2011

20102009

2011

Increase Decrease Remain Unchanged

www.macdonaldandcompany.hk

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% anticipate increase in economic activity 2009 2010 2011

All participants 62% 56% 35%

Claims & dispute Resolution NA NA 62%

Building Surveying 44% 26% 55%

Leasing 67% 55% 53%

New Build/Construction NA NA 50%

Commercial Agent 93% 77% 46%

Facilities Management* 48% 54% 45%

engineering NA NA 42%

Sales & Marketing NA NA 41%

Quantity Surveying 64% 54% 39%

CeO/Md/Head NA NA 38%

CFO/Financial director/Controller NA NA 36%

Architect/design 72% 61% 36%

Property Asset Management 62% 63% 35%

Fund Management 77% 57% 34%

Interior design NA NA 33%

CRe Transactions NA NA 25%

Project Management 56% 63% 23%

Consultant** 80% 56% 22%

valuation 47% 54% 22%

2009, 2010, 2011 and base response total to read Base:

All giving an answer: 2009 = 1,536, 2010 = 949, 2011=1,291 (base <100; base < 20)

* 2011 is an average of Facilities Management Service Provider and Facilities Management In-house ** 2009 and 2010 title was General Practice / Consultancy

All professional activities with a response rate lower than 15 have not been included.

Macdonald & Company is the leading professional recruitment consultancy to the property industry and built environment. we have offices in the united Kingdom, dubai, Hong Kong, and South Africa enabling us to offer global reach with local knowledge. we act for a diverse range of clients, these include developers, investors, institutions, property companies, funds, banks and consultancies – indeed any organisation that occupies, owns, develops, invests in, finances or advises on property and construction. Annual surveys of remuneration and attitudes are undertaken for the following regions, uK, Middle east, Asia, europe & Africa. www.macdonaldandcompany.com

Macdonald & Company: 16/F, 1 duddell Street, Central, Hong Kong T: +852 2248 3000 e: salarysurvey@macdonaldandcompany.com

RICS is the world’s leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism. Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.RICS is an independent professional body originally established in the uK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis

for unparalleled client confidence in the sector. www.rics.org.

RICS Asia, Room 1804, Hopewell Centre, 183 Queen’s Road east, wanchai, Hong Kong

The International Facility Management Association (IFMA) is the world’s largest and most widely recognized international association for professional facility managers, supporting more than 20,000 members in 78 countries.

The association’s members:

•Include127chaptersand16industrycouncilsworldwide

•Managemorethan37billionsquarefeetofproperty

•AnnuallypurchasemorethanUS$100billioninproductsandservices

Formed in 1980, IFMA certifies facility managers, conducts research, provides educational programs, recognizes facility management certificate programs and produces world workplace, the world’s largest facility management conference and exposition.

A comprehensive online statistics package for the survey is available at a cost of USD $999.

Further Information

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HONG KONG

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duBAI

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york House, 20 york Street, Manchester M2 3BB T: +44 (0) 161 605 0500 F: +44 (0) 161 605 0505 e: manchester@macdonaldandcompany.com

40a dover Street, Mayfair London w1S 4Nw T: +44 (0) 20 7629 7220 F: +44 (0) 20 7629 3990 e: london@macdonaldandcompany.com

Office 206, Floor 2, Barsha valley Building, Al Barsha 2, PO Box 282196 dubai, uAeT: +971 4 430 9233 F: +971 4430 9232 e: dubai@macdonaldandcompany.com

Gleneagles House, Fairway Office Park, 52 Grosvenor Road, Bryanston, South AfricaT: +27 11 361 5900 F: ++27 11 706 6713 e: southafrica@macdonaldandcompany.com

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16th Floor, 1 duddell Street, Central, Hong KongT: +852 2248 3000 F: +852 2526 9150 e: hongkong@macdonaldandcompany.com