Spaced Out and 5 other mega trends in the property sector

Morocco and Spain (NASA, International S by NASA

Last week I attended the Green Building Council of Australia’s Green Building Day in Sydney. One of the notable changes in the professional development events held by the GBCA over the last year has been the broad range of topics impacting upon the design, construction and property industries which are being discussed at these kinds of events – I think this is really great to see as in my view there is a shortage of good professional development and training events available for architects and designers. (Green Building Day is also great for scoring your GreenStar accredited professional CPD points – you can get a whole years worth in just one day.) This year the keynote speaker was Bruce Precious from The GPT Group, speaking on Global Mega Trends and the Property Sector. I’d seen Bruce speak before on the GPT offices at MLC (and blogged about it here) . As I’d enjoyed his previous presentation and I was in need of a few more CPD points I signed up for the morning session. As I got so much just out of Bruce’s presentation and the panel talk following it, I’m going to focus on just that part of the morning. If you missed the day and were hoping for a full wrap, sorry but you will have to hunt elsewhere in the hope someone else has blogged about the rest! (Trust me I’ve picked the best bit for you)

Bruce’s presentation was covering research that The GPT Group undertook in conjunction with CSIRO looking into mega trends affecting property industry. The aim of The GPT Group in looking into these mega trends is to be able to convert threats into opportunities. Bruce noted that if there is evidence of a trend it has already happened, it is historic and doesn’t guarantee the future. I’d also note that if the research has gone this far and now being pushed out to the public its probably not the cutting edge trends of the minute – but then thats part of the point isn’t it, a mega trend is one that tends to last as while as well as have a large impact.

As so often is frequently commented upon in social and technology circles, Bruce commented on the fact that the world is accelerating, the pace of change is ever increasing. Does this mean we can still identify long term trends? This one is my question – but I think when we get to what are the 6 mega trends you will probably agree yes we can.

As well as long term trends there are shocks and tipping points, man made and natural. Whilst these can have just as much impact as the longer term mega trends, they are not something we can predict or our businesses can plan for. Although sometimes these shocks or tipping points could perhaps have been predicted? My question – Global Financial Crisis – shock or trend? But lets not go there – lets go now to what are the six mega trends which The GPT Group identified as having the most impact on their business, the property sector in Australia. Now see if you can guess what they actually mean…I love the names, great idea whoever came up with these catchy sayings.

1. Spaced out
2. More from less
3. The orient express
4. Behind the scenes
5. Tangible intangibles
6. Forever young

Spaced Out
No it’s not about the fact we have less office space per person than ever. It’s about tech savvy people, being constantly connected, the change in how we communicate and what information we have available to us due to the massive changes in technology over recent years. It includes big data, but as Bruce pointed out we have to get from big data to big information, perhaps he thought we can then get to big knowledge but will big wisdom ever exist?

In practical terms, GPT are developing apps based around the concept of the shopping centre as the community hub. The apps not only display info about the centre but link social networks. In future,sensors will personalize this experience even further.

In the workplace, technology allows flexibility and movement – the freerange workplace. The empty desk could be used by anyone, not just someone from our own organisation. GPT has invested in Liquid Space – a start up company base on a concept similar to Airbnb and are now trialing spaces in Sydney and Melbourne.

More from less
This one has the most obvious title – using less – less water, less energy, less materials. Bruce took it in an interesting direction beginning with a discussion of the growing intellectual potential of the world is due to world growth, growing affluence, and participation of women. (I thought it was a great rant by the way!)

GPT are looking at cutting use of natural resources – reducing water, waste, energy etc. Bruce discussed recycling and the possibilities of improving recycling – upcycling rather than downcylcing. Eg rather than grind glass up into road base, can it be used as something higher? Aparently there is a company upcycling dirt from street sweepings which contains a high amount of precious metals, as apparently do old mobile phones! These are generating new possibilities for mining resources.

For GPT and the property industry in Australia energy savings have been a key change in recent years. GPT is part of the The Better Building Partnership which consists of many leading property companies in Sydney. Romilly Madew, the CEO of the GBCA is quoted on their website as saying “Partnership is the new leadership”, Bruce questions could mankind’s new force be cooperation? We now have a database of water, waste and energy covering a large chunk of the local Sydney commercial building market. This is a great resource for the Sydney property market and others moving forward.

The orient express
The growth of China and other eastern population centers – a scale of populations that is unimaginable as an Australian. A company sales conference of 3000 people came to Sydney, this was just their top people! They booked the bridge climb for days solid! Can we even visualise this scale? Bruce recommended Gapminder.org as a way to visually see the changes and development of the world across many measures of large population centers. (There is a great gapminder TED talk too).

Behind the scenes
Supply chains and logistics are changing – both due to the internet and globalisation. I think there might be a lot more interesting stories behind this one.

Tangible intangibles
We are moving beyond consumerism as product consumption and into experience consumption – for example travel. Shopping centres for example are now experiential as well as for the function of shopping. Community spaces, outdoor spaces, gathering spaces.

Forever young
The impact of ageing and disability on design. The space requirements for motorized scooters and wheelchairs.

I thought the last 3 trends could have been discussed further, all of them will impact on design and could be quite interesting. I can see why the trend More with Less was a focus at a sustainability event, but it did seem that maybe Bruce was running out of time at the end – I would have been quite happy to listen to more. Bruce’s presentation was followed by a panel discussion moderated by Romilly Madew with Bruce, Siobhan Toohill (Westpac) and Richard Palmer (WSP) who brought some interesting perspectives as well as answering audience questions on the topic of mega trends and the property industry.

What stories would you add to these last 3 trends? What do you think are the mega trends affecting the property industry? CSIRO apparently came up with eight of which GPT chose to focus on six. Do you think the trends elsewhere are the same as in Australia? Some of the other interesting trends raised in the panel discussion following were the social and sharing economy and the rise of the city.

3 Responses to Spaced Out and 5 other mega trends in the property sector

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  2. Hi Cielidh. Great post. McKinsey and Co had 12. I wrote about the impact on our property industry on simonwild dot me do a search on disruptive tech property impact. The challenge is not just spotting the trends but innovating towards them.

    • CeilidhHiggins

      Thanks Simon – I shall check out your blog. I have read the McKinsey report you refer to – and I wonder if Bruce has too, he did mention 3d printing briefly in his presentation!

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