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Australia’s real estate revolution

"Within a few years, Generation Y is tipped to inspire great change across residential landscapes," said Mr Rivera.

"I expect they will comprise the most influential generational group in property since the baby boomers."

Colliers International research has been consulting to developers who have realised the future influence of the demographic demand shifts.

"We've been working with key developers to identify these trends and working with their architects on how to deliver a product which will meet the Gen Y wave demands in key locations," he said.

Mr Rivera said there were over 5.5 million Generation Y's today- that's 200,000 more than Baby Boomers and 700,000 more than Generation X.

"Our research has shown that Gen Y are very accepting of density and the majority believe they do not have to move to the suburbs once they have kids," said Mr Rivera.

"They are interested in close-knit neighbourhoods."

"They like to belong or identify themselves in relation to where they live.

"Our findings have shown what they are seeking are 'destination developments' where connectivity is key," he said.

The research director said compact urban developments in middle ring suburbs (5-15km's from the CBD) with strong social and amenity networks would be the future if developers wanted to tap into the $48 billion spending power of Gen Y's.

"We will see a greater shift of Gen Y toward home ownership in 2011 and 2012," he said.

"Half a million of these Gen Y's earn at least $1000 a week."

Mr Rivera said Gen Y is 'outward looking' and 'civic minded'.

"It is important to understand that Gen Y will want these values to extend into the corporate structure of their builder or developer," he said.

"The most successful developers will be those who offer value for money and understand what the buyer really wants."

"They are looking for diversity in the form of clustered single family dwellings, townhomes and apartments."

"Through our consultancies we have discovered that developers should be offering location driven housing but of reduced product size but with a bigger focus on design and layout."

"Opportunities lie in middle ring suburban infill and Greenfield sites."

Mr Rivera said Gen Y home buyers would be drawn to a development with unique features like a roof top common area instead of a penthouse in Queensland or 'fire pit' in the colder states where residents can meet up.

"They are the most connected generation in our history and place high value on staying connected with friends and family," he said.

"Creating density with space are the characteristics needed to support this lifestyle."

"We are hearing from Gen Y that developers should reduce body corporate fees for residents by not including gyms and media rooms. If you are built in amenity rich areas – normally that would be accommodated for.

Mr Rivera admitted a large proportion of Gen Y will still be forced to rent which is good news for investors.

"It's a necessity for both developers and investors to understand Gen Y characteristics, behaviour and needs to cash in on the 'Gen Y Wave' in the coming years."

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