Six Property Sector Megatrends for 2013

July 30th, 2013

According to GPT’s sustainability manager Bruce Precious, there are six megatrends that will affect the property sector in the coming years.

Trend 1 – Rapid technological advances are changing the way people shop and work. Online retail is growing, affecting retail prices and purchases. Free range working and utilising technology means people can work away from their desk or the office, which allows desk sharing and increases occupant satisfaction.

Trend 2 – Due to higher living standards, natural resources are in high demand, despite their rapid decline. However, intellectual capital is increasing, which could be harnessed to solve the problem, either through community cooperation and collaboration, or upcycling waste products by using them for better purposes.

Trend 3 – With developments in China, people leaving poverty behind and a growing middle class, there is an economic shift from the West to the East. This means Chinese investors could turn to Australia’s property market.

Trend 4 – Supply chain sophistication and offshoring is a growing trend, and GPT responded by upweighting their logistics portfolio through selling their retail holdings to increase their investment in logistics.

Trend 5 – Customers want a good experience, not just a good product. As a result, GPT internalised their office management so they could be closer to their tenants. Shops, theatres, libraries and other local amenities also made changes to their offerings to create better relationships with their customers, which could lead to better returns.

Trend 6 – With an ageing population, and living and working for longer, more institutions will be needed for medical, educational, professional and social purposes.