AUSTRALIAN MILLENNIALS: SHAPING THE FUTURE OF REAL ESTATE

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1 AUSTRALIAN MILLENNIALS: SHAPING THE FUTURE OF REAL ESTATE

2 AUSTRALIAN MILLENNIALS WHO ARE THEY? BASED ON THOSE AGED % LIVE WITH THEIR PARENTS/FAMILY HOME Much lower than Asian countries (70%) 73% HAVE A DEGREE OR STUDYING FOR ONE 54% MARRIED OR LIVE WITH A PARTNER Much higher than Asian countries (37%) 74% ARE EMPLOYED 18% HAVE INCOME GREATER THAN $100,000

3 MILLENNIALS IN AUSTRALIA HOUSING AFFORDABILITY IS A MAJOR ISSUE FOR MILLENNIALS 66% believe they won t ever be able to afford it WELLNESS FACILITIES ARE A DRAW CARD FOR MILLENNIALS Wellness/relaxation facilities and green space are the biggest influence on millennials when looking for a job THE PHYSICAL SHOPPING EXPERIENCE COUNTS 70% of non-food purchases are made in-store 27% OF MILLENNIALS GET HELP FROM PARENTS/ GUARDIAN FOR A DEPOSIT Much lower than Asian countries (63%) MORE THAN 74% believe work relationships and office designs are important in the workplace MILLENNIALS MAY HAVE MORE JOB LOYALTY THAN PERCEIVED 61% 20% want to work for a small number or single company INCREASING F&B AND RETAIL EXPERIENCE PREFERENCE want to increase their spending on F&B and entertainment over the next 3 years CBRE GLOBAL RESEARCH This report was prepared by the CBRE Australia Research Team, which forms part of CBRE Research a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate. CBRE Ltd Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

4 HOUSING AFFORDABILITY IS AN ISSUE FOR AUSTRALIAN MILLENNIALS 76% 70% 66% 29% 70% 74% 27% want to buy a say cost is the believe they won t believe they can t spend up to half believe wages are of millennials get property in the biggest factor ever be able to afford to buy in an of their disposable not keeping up with help from parents/ future preventing them afford it area they like income on non-retail property prices guardians for a from buying. Cost consumption, eating deposit. Much lower is the top reason away savings than Asian countries globally BELIEVE THEY CAN'T EVER AFFORD - GLOBAL COMPARISON AUSTRALIA 66% HONG KONG 61% GREAT BRITAIN 60% CANADA 46% UNITED STATES 40% GERMANY 33%

5 WELLNESS FACILITIES ARE A DRAW CARD FOR AUSTRALIAN MILLENNIALS Which, if any, of these facilities would have an influence on you when thinking about taking a new job? 45% of Millennials like their current office layout PERCENTAGE OF RESPONDENTS Wellness / relaxation facilities Wellness/relaxation facilities Sleeping / rest areas Green space in building / rooftop gardens is the biggest influence on millennials when looking for a job Games room Child care centre On-site convenience store Canteen Sleeping/rest areas, green space, games room and child care centres Dry cleaning service Ability to receive shopping deliveries are highly desired compared to what's currently provided Coffee bar Bike racks desire Showers currently provided

6 OFFICE DESIGN AND LAYOUT IS IMPORTANT BUT WORKING RELATIONSHIP AND ENVIRONMENT IS MORE IMPORTANT Percentage of respondents that agree strongly or tend to agree: 77% 74% 72% 65% 65% 62% 61% Good employers Working relationships Good design and I consider myself lucky In the current job I would like to have It is important to take put a lot of thought are one of the most layout of an office to have a job at all market it s very flexibility on where I some risks in your into the working important aspects of has a positive impact difficult to find a job work from on a given work life environment work on the staff that work that really excites you day there Millennials agree that office design and layout is important however, working relationship and work environment is more important Work flexibility is important to Australian millennials

7 MILLENNIALS MAY HAVE MORE JOB LOYALTY THAN PERCEIVED Millennials want to work for a small number of companies during their career but with the right employer 40% Want to work for a small number of companies during their career 21% 19% 12% 6% 2% Want to work for the same company for their whole career Want to be self employed Don t know Want to work for a large number of companies, with frequent changes Other

8 THE PHYSICAL EXPERIENCE COUNTS There are fundamental reasons why online retailing can t replace physical store shopping PERCENTAGE OF RESPONDENTS Like to see the products Can get the product there and then Want to try items on It s easier to shop in store Enjoy shopping as a leisure activity More choice in store Use time shopping to spend time with friends or family Want to be served by a person Better process in store Other Don t know 70% 20% 1 DAY 1 DAY 3 DAYS 5 DAYS of non-food purchases by Australian millennials are made in-store of Australian millennials want to increase their spending on F&B and entertainment over the next 3 years per month visit a live event (gig, theatre, concert) per month to shop in high street retail per month visit shopping centre for a reason other than shopping per month visit a shopping centre to shop

9 For more information about this report, please contact: PACIFIC RESEARCH Stephen McNabb Head of Research Danny Lee Senior Research Manager Felice Spark Associate Director Sam Reilly Senior Research Manager Follow CBRE CBRE GLOBAL RESEARCH This report was prepared by the CBRE Australia Research Team, which forms part of CBRE Research a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to real estate investors and occupiers around the globe. All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.