It’s fairly obvious to say that technology has influenced every area of our lives. How we work. How we travel. How we are entertained. How we communicate. We know that, generally speaking, technological advances have made things easier, faster, cheaper.
But what has the impact of technology been on property?
Strangely, there appears to have been two different and completely opposite effects: the first, encouraging decentralisation of employment; the second, drawing jobs and people into the large city centres.
We all remember how the mass introduction of computers into the workplace brought with it the promise of being freed from our desks, able to work away from the office, either at home or on the move. That has happened in part, but not on the scale that was widely predicted.
What we have seen is a rise in the number of people working online as contractors and the development of a contractor network. In Australia, businesses that are growing the fastest are those which employ one to four people, and this includes the self-employed doing contract work.
If we break this down into the component industries, we find that the technology component of each industry in its start-up phase is driving employment.
Interestingly, many of these innovative but footloose industries are dispersed across our major cities. 60% of businesses are not located in a recognised centre.
The contrasting trend is the recentralisation of employment into a small number of world CBDs, such as Sydney, Beijing, Zurich and Melbourne.
Through technological change we are witnessing the growth of high-value CBDs processing very high-value deals and demonstrating very high levels of productivity as a result of knowledge output.
The thing to remember is that not all, or even most, of the major world cities are experiencing this intense technologically-charged recentralisation.
This is one of the factors which has really driven Melbourne and Sydney, and it has made them very different to Brisbane and Adelaide. The professionals who are being drawn into these high-value CBDs attract high salaries and will continue to drive up inner-ring residential real estate prices.
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For more information or to discuss your property research requirements, please contact Amy Williams, National Marketing Manager on 02 9221 5211 or firstname.lastname@example.org.