PropTech 2.0, or the second wave of PropTech, will bring about many more changes to the property industry.
Bernard Tong, CEO of EdgeProp.sg, spoke at the Malaysian Annual Real Estate Convention 2018 (MAREC ’18) where he said, “The first wave of Prop tech or PropTech1.0 is really about bringing real estate information online so that consumers have insightful data to help them make better decisions, instead of solely relying on an agent.”
“PropTech 1.0 companies – including EdgeProp.my and EdgeProp.sg – are mainly lead-generating businesses for agents, focused on sending them highly-qualified leads. It is agent-centric – nothing different from print classifieds businesses in the past.”
PropTech 2.0 on the other hand, will change the industry as we know it. From the way we think about property transactions, to how they are done.
Mr. Tong said that there are 4 key points that drive PropTech 2.0:
- Data-Driven Analysis
- Shared Economy
- Real Estate Fintech
He said that these innovations will drive real estate services to become digital, simple, personalised and affordable.
“The real estate sector is ripe for change. The reason it had been slow to change in the past is because it has very little speed. PropTech 2.0 drivers such as real estate Fintech and the sharing economy are creating the building blocks that will make it easier, cheaper and faster to buy and sell property. This means speed will go up.”
“Investors are starting to take notice. Funding for PropTech companies has gone up over 10 times in the last five years. Sums invested means a truly transformative PropTech movement is underway,” he added.
During the same event, Datuk Seri FD Iskandar Mohamed Mansor, President of the Real Estate and Housing Developers’ Association (Rehda) Malaysia, talked about how the government needs to work with property stakeholders to create a one-stop big data centre to bridge the gap between supply and demand and to help predict housing trends in various areas.
“Malaysia needs more than 100,000 new homes to cater to the demand, but in 2016 we only created 62,000 new homes. This shows how Malaysia needs a one-stop agency with big data that shows [not just the] types of properties that we are developing but also for future launches,” he said.
A one-stop data centre will help in making informed decisions when planning for future sales and buying opportunities.
Datuk FD Iskandar also commented on the responsibilities of institutions in the property industry, saying, “…everyone has a role to play, such as financial institutions and especially the government and Ministry of Urban Wellbeing, Housing and Local Government, as they are the ones issuing development approvals and they can use these data to project upcoming housing developments in various areas.”
This situation is a fine example of the problems we face in the industry and how they can be solved with technology and PropTech.
PropTech 2.0 is the way of the future and the amount it can do for us and how much it will change us is immense. Keep your eyes and ears open, change is on the horizon.