What Will Influence How People Use Real Estate in the Future?

How will Australians live, work and shop in the future? A new CBRE poll has highlighted some surprising preferences, with one-third of respondents wanting to move in the next two years as the ‘push to the bush’ recalibrates. Meanwhile, shopping in store is expected to remain in favour, while wellness and ESG are set to wield more influence than ever before in our emerging workplaces.

CBRE interviewed more than 20,000 people worldwide, from baby Boomers to Gen Z, for its Live Work Shop survey - the first of its kind identifying trends set to reshape how occupiers, developers and investors approach the built environment.

More than 1,000 Australians took part, providing key insights as to what will influence how people use real estate in the future.

“One of the key conclusions is that quality of life is the top consideration for where and how people live, work and shop. More Australians plan to move back to urban areas after the shift to alternate locations during the pandemic and, despite the pandemic-driven surge in e-commerce, most consumers still prefer to buy items in-store. People also want to feel more connected to the places they occupy, with wellness factors more influential than ever before,” said Sameer Chopra, Pacific Head of Research for CBRE.

Significantly, city centre areas are the most sought after among those respondents planning to move – contrary to the widely held belief that most people were seeking to move to non-urban areas as they no longer needed to commute regularly to the office.

More than one-third of those polled want to shift residences in the next two years and, while ownership remains the preference, it’s becoming more lineball with renting (52% vs 48%) a finding that aligns with a growing investor and developer focus on build-to-rent (BTR) opportunities in Australia according to Andrew Purdon, CBRE’s Regional Director of Living Sectors, Capital Markets.

“The survey highlights a strong focus on personal wellbeing and respondents’ desire to live in high-quality residences that provide exceptional amenities and real-world experiences. This is supporting the increased demand for BTR in Australia as investors react to the shift in customers’ expectations about their homes and recognise the attractive real estate investment returns,” Mr Purdon said.

Other key Live Work Shop survey takeaways include:

• Outside of compensation, commute and flexibility are next most important factors for new hires.
• Location is also key for respondents considering work opportunities - most consider commuting as the top factor after salary - and when shopping, with most preferring to shop in person when possible.
• Wellness and ESG wield more influence than ever: Respondents want healthier workplaces with natural light and better air quality and are more conscious of the environmental and social impact of their purchasing habits.
• The in-store experience is still a driving force, with 79% favouring in-store grocery shopping, 34% preferring to pick up on-line orders in store and 81% intending to buy locally sourced goods.
• Returning products in-store rather than by post is a preference

You can explore the data behind the survey with CBRE’s interactive Data Dashboard, which segments the global survey findings by geographic region, market, and age group.