Future Trends Impacting Real Estate: Insights from REIWA Property Management Chapter Convention 2007

1. REIWA Property Management Chapter Convention 2007 Busselton Western Australia 28th April 2007 Future Trends Impacting Real EstateHarvesting in the Worlds of the Gen X DotComs & Ferals Annimac Futurist Trend Forecaster www.annimac.com.au

2. Rate of Change - exponential Amount of change now in 1 day grandparents had in 1 year Younger means faster Generational gap widening www.annimac.com.au

3. I’m never having kids. I hear they take nine months to download. www.annimac.com.au

4. Three Global Challenges • Climate change • Peak Oil • People change www.annimac.com.au

5. Three Global Challenges • Climate change • Global warming impacting now • Aus second most arid continent • WA climate highly vulnerable • tropics moving south, desert moving west • changing rainfall & temp • 2° temp rise = 1 metre ocean rise www.annimac.com.au

6. Three Global Challenges • Peak Oil • The Big Rollover : Demand > Supply • In 2005 O&G industry : happen in 2007 – 2012 • Feb 2007 : industry says Now ! www.annimac.com.au

7. The Peak of World Oil Production OIL BUYERS MARKET SELLERS MARKET 3 5 3 0 CHEAP & EASY-TO-EXTRACT OIL 2 5 2 0 We are here Past oil production 1 5 US Previous Rollovers Forecast oil production North Sea 1 0 5 0 1 9 3 0 1 9 5 0 1 9 7 0 1 9 9 0 2 0 1 0 2 0 3 0 2 0 5 0 EXPENSIVE & HARD-TO-EXTRACT OIL Annual Oil Production Gbbl www.annimac.com.au

8. Three Global Challenges • People Change • Product driven world shrinking • Value driven world expanding • Consumers demand excellence • Consumer Profiles rapidly changing www.annimac.com.au

9. How Values shape markets • Values determine what people value and find valuable • What people value and find valuable they will want more of • What they want more of will determine what they seek in markets • What is sought in markets will shape emerging innovations, products, services and technologies Peter Ellyard Preferred Futures 2007 www.annimac.com.au

10. Technology Driving all Change By 2020 70%of job types then do not exist now www.annimac.com.au

11. Driving Change : By 2020 because 80% of technology then is not imagined yet www.annimac.com.au

12. Future Receptionist ? Display home hostess ? Japanese Robanoid 2006 www.annimac.com.au

13. Imagine what some of those jobs might be ….. www.annimac.com.au

14. Likely jobs in next 15 years : • Director of Emerging Thought • Chief Zookeeper - of people • Biotech Homes Consultant • Home Mood Enhancement Coach • Nano Technology Info Officer • Chief Imagination Advisor • Hacker Relations Manager • Holographic Display Modeller • Online Client Life Consultant www.annimac.com.au

15. Look at Generational differences • Gen gap always existedbut • Gen gap is fast widening www.annimac.com.au

16. Parallel Universes Kids live them. www.annimac.com.au

17. www.annimac.com.au

18. Generations Baby Boomers 1945 – 60 age 45 – 60 Generation X 1960 – 75 30 - 45 DotComs 1975 – 90 15 - 30 Ferals 1990 – now to 15 annimac Generation X 1960 – 80 25 – 45 Generation Y 1980 – now to 25 wikipedia www.annimac.com.au

19. Baby Boomers $100 for speeding $250 for misleading the public www.annimac.com.au

20. Baby Boomers 45 - 60 • Downsizing lives • Empty nesters • Retired or part time work • Male identity from job • Questioning material status www.annimac.com.au

21. Boomers Care www.annimac.com.au

22. Baby Boomers 45 - 60 : • Sense of community • Seek new safe experiences • Security & Health conscious • Defer to authority • Love / hate change www.annimac.com.au

23. Boomers & technology That’s the phone dear. Here try the remote. That’s the phone, dear, Here, try the remote www.annimac.com.au

24. Impact for Real EstateBaby Boomers 45 - 60 • Winding down : leisure indulgence • Risk averse • Respect rank • Steady relationships • Need • relationship continuity • familiar experiences • positive group identity • structural reliability • greening options www.annimac.com.au

25. SoAre Boomers driving changeNo Yes Maybe 45 - 60 What do you think ? ….. www.annimac.com.au

26. Generations Baby Boomers 1945 – 60 age 45 – 60 Generation X 1960 – 75 30 - 45 DotComs 1975 – 90 15 - 30 Ferals 1990 – now to 15 annimac Generation X 1960 – 80 25 – 45 Generation Y 1980 – now to 25 wikipedia www.annimac.com.au

27. Gen Xers www.annimac.com.au

28. Generation Xers 30 - 45 • Single Childless • Net Dating • Varied lifestyles • Varied workstyles • SOHO www.annimac.com.au

29. Gen X Lifestyle Dog www.annimac.com.au

30. Generation Xers 30 - 45 • Risk takers Personal journey • Fast decisions • Materialism assumed • Environmental values • Defer to heroes • Expect & accept change www.annimac.com.au

31. Impact for Real EstateGen X30 - 45 • Fast action Now • Short term pitch - staged pitch • Results oriented • Need • choices immediacy • short term involvement • complete – stand alone • skills oriented • demand quality of experience www.annimac.com.au

32. SoAre GenXers driving change ?No Yes Maybe 30 - 45 www.annimac.com.au

33. Generations Baby Boomers 1945 – 60 age 45 – 60 Generation X 1960 – 75 30 - 45 DotComs 1975 – 90 15 - 30 Ferals 1990 – now to 15 annimac Generation X 1960 – 80 25 – 45 Generation Y 1980 – now to 25 wikipedia www.annimac.com.au

34. DotComs www.annimac.com.au

35. DotComs 15 – 30 ( Gen Y) • Own path Immediacy • Temporary pairing • Group socialising • Internet relationships • Wired • No home • No single careers www.annimac.com.au

36. DotComs Relationships www.annimac.com.au

37. DotComs 15 - 30 • I.d. from activity • Multi channeled Multi actions • Planetary group mission • Temporary deference - usefulness • Need change Cluetrain Manifesto www.cluetrainmanifesto.com www.annimac.com.au

38. Impact for Real EstateDotComs 15 - 30 • Passionate – value driven • Team + personal relationships • Short term fast involvement • Multi channel activities • Need • choices no spin • very short term • flexibility innovation • real positive outcomes www.annimac.com.au

39. SoAre DotComs driving change ?No Yes Maybe 15 - 30 www.annimac.com.au

40. Generations Baby Boomers 1945 – 60 age 45 – 60 Generation X 1960 – 75 30 - 45 DotComs 1975 – 90 15 - 30 Ferals 1990 – now to 15 annimac Generation X 1960 – 80 25 – 45 Generation Y 1980 – now to 25 wikipedia www.annimac.com.au

41. Ferals www.annimac.com.au

42. Ferals 0 - 15 • Wild Child • No limits No boundaries • Planetary mission : to create sustainable world • Wired • Parallel universes • Unlimited mind channels • Intuitive & telepathic www.annimac.com.au

43. Ferals Virtual World www.annimac.com.au

44. Ferals to 15 • Future jobs unimportant • Non consumers • Global i.d. from self values • No deference • Respect only when useful • Live change & ignore barriers www.annimac.com.au

45. Ferals www.annimac.com.au

46. Impact for Real Estate Ferals to 15 • Expect new relationships & things • Love Virtual world • Create into unknowns • Influencing older gens - leading ! • Need • personal power trust • clear values nb: super spin detectors • no rules no hindrance • ICT quality access • multi channel everything www.annimac.com.au

47. SoAre Ferals driving change ?No Yes Maybe www.annimac.com.au

48. Y E S www.annimac.com.au

49. Real Estate Trends Summary • huge rate of change • climate change & Peak Oil • younger generations driving change • relationships key • Work / Life styles options • less governance • more community power • individual responsibility ! Virtual world emerging ! www.annimac.com.au

50. Facing the future in Property Management : www.annimac.com.au