From unlocking the millennial mindset to the multi-family asset class, The Property Council of Australia have recorded a number of trends that some of the property industry’s rising stars are keeping a close eye on.
A senior analyst with Knight Frank, Mark Crosland said how we integrate young people into the workplace will become an increasing issue for companies wanting to attract the top talent.
Around a quarter of Australian workers today are millennials, and with an even younger generation preparing to enter the workforce, we can expect significant changes in office dynamics.
“Unlocking the millennial mindset will be something that companies need to consider carefully,” Mr Crosland said.
The Deloitte 2017 Millennial Survey found that more than three quarters of young people prefer permanent employment, rather than a ‘gig’ in the share economy, because they value the security that comes with full-time work.
However, Australians surveyed were generally unsatisfied with their current jobs and more likely to leave within two years than their global counterparts.
“Retaining these employees will change the way we think about the nine to five work day, as flexible working hours within a permanent work schedule appears to be the secret to engaging millennial employees,” Mr Crosland said.
“Millennials are also transforming the way workplaces are designed, to encourage better communication and collaboration.”
AMP Capital Assistant Fund Manager Magda Zieba said the multi-family asset class was an untapped opportunity in Australia’s property market.
“Multi-family is a significant institutional asset class in the United States, Europe and the United Kingdom and could change the way the residential property market is viewed in Australia,” she said.
“It may not only challenge the Australian dream and desire for owning a home, but also introduce a new asset class which would potentially compete for capital and affect the pricing of commercial property.”
Mirvac Senior Development Manager Riye Arai-Coupe said the industry’s greatest opportunity is to improve the liveability in our homes with emerging technologies.
“Connectivity is central to the way we live and work, and the systems we can now put in place are changing everything – from the way we live in and control our spaces, to the way we manage our time and money.”
“Everything from smart home systems and smart meter technologies to the use of Airbnb and Uber networks are changing the way we live today. I believe there is a huge untapped opportunity to integrate the latest technologies on the market and truly reshape our lives and our homes.”
DWP Associate Katherine Daunt put technology front and centre, and said the impact of technology in architecture and building is the next big trend for the property industry to grasp.
“New virtual reality tools will enable architects and designers to immerse themselves in buildings and products while they are creating them,” she said.
“The benefits of virtual reality in the design process are yet to be fully appreciated. This new trend will greatly assist clients and building owners to understand their buildings in a real-world sense before the project is realised. It will empower them with greater control over the end outcome.”
Urbis Director Tim Dawkins said the industry needs to accept that “disruption is the new normal”.
Change is occurring so quickly that it is “very hard to make long-term plans,” he said.
“Who is working is changing as we have better sharing of parental responsibilities, how we live is changing as terrace houses make a comeback to meet the housing needs of a new generation, and how we shop is changing as we eat out more and entertain at home less.”
Mr Dawkins said the lesson for everyone is that there is “no status quo – everything is always moving”.
“In 2006 everyone in Perth was talking about how their house had doubled in value over the past few years – now they have stagnated. The GFC hit and it looked like the end for a significant period of time, then WA had a once-in-a-generation boom.
“In 2009 the WA Treasurer called NSW the ‘rust bucket’ of the national economy, now it is the best performing state with unstoppable momentum.”
Property Council said the lesson in all of this is to keep one eye on the horizon or get left behind.