By Nirmelraj Pathchimuthu
PETALING JAYA: The property industry must adapt to changes and disruptions of technology to maximise the potential of the web, according to EdgeProp Singapore chief executive officer Bernard Tong.
He said with PropTech 2.0, it has changed the focus of the transaction between all parties and revolves around the usage of the internet, which differs from PropTech 1.0 that focuses on collecting viable leads/real estate information for real estate agents and consumers to work on.
“The key drivers are data mining, sharing economy/shared technology, real estate crowdfunding platforms, and blockchain technology,” said Bernard during the 32nd edition of Malaysian Annual Real Estate Convention (MAREC’18) during his presentation, ‘Leveraging on Property Data Analysis to Maximise Productivity’.
Bernard’s talk focus on how digital innovation will impact the real estate industry and what tools are required to analyse the data.
Regarding the industry, he said the real estate sector is embracing for change. However, the reason as to why it was changing slowly in the past is because it has very little velocity; “Most people buy one or two homes in their lifetime as opposed to other investments,” he said.
Regarding investors, Bernard said funding for proptech companies has gone up over ten times in the last five years. He also added that for real estate agents who are diligent in the digital game, the opportunities are endless.
However, he declined that with the emergence of new technologies, it would have an adverse effect to agents as Bernard explained that it could be utilised as a tool or extension that can also improve their sales.
“Human element contributes to that, but it’s also because purchasing property is a huge decision and is a process that involves many large and complex transactions. As such, consumers tend to consult real estate agents personally,” he said.
The Malaysian Institute of Estate Agents (MIEA) recently held its 32nd edition of Malaysian Annual Real Estate Convention, MAREC’18. The event convened professionals from all corners of the real estate industry to share their thoughts on the issues facing the future of the industry.