Most industries and businesses have changed over the years due to the rapid advancement of technology. This includes the real estate sector. Individuals are becoming more mobile and connected via social technology. With the proliferation of smartphones, they can now access informations needed anytime and anywhere, which will help in making the right decision.
But… beyond that, how does it affect the property segment? Read on to find out.
1. Generates New Opportunities Quickly
With loads of informations made available on the world wide web, the convenience for you to maximise exposure, monitor competitors and build circle of network is endless. For businesses, if you have a great go-to-market (GTM) strategy, you know you can win big in terms of leads.
It is said that many property sales are influenced by the real estates’ portals. Nonetheless, it will also make the market even tougher. This is because for buyers, more infos means more opportunities, which lead to more alternatives. With never ending options, businesses need to create added value to services in order to win their buyers - which is why good planning is needed. It’s a war.
2. Data Is The New Black
Again, with the easily accessible information on the internet, buyers can now find more details about a property by just browsing through websites. Besides property listing, you can see now that property portals also provide mortgage calculators and comparison chart. Below is an example of comparison chart from our website. Whenever you search for a property, you’ll see the chart below the review for you to analyse.
This is what we call democratising data. With all the data that has been acquired by the companies, they’re are now sharing necessary infos to the end-users, without requiring outside help. These data will help buyers/investors in making data-driven decision, so that they’re not overpaying for something. Furthermore, they also get to know if the area is in demand.
3. Virtual Tours Are Booming
Most of property websites are now heading toward virtual reality (VR). Some say that it’s just an overpriced gimmick, while others make the most out of it. Real estate related companies are adding virtual tours as part of their GTM strategy.
This is a not just another ‘wow’ factor, but it can actually have an impact to close your deals, especially if you have buyers from overseas. They can at least have a realistic idea on how the property looks like before setting a site viewing. And no, this is not just for the big guns in the market.
If your company is still small or you’re just a property owner, you can still do the same with Ricoh Thetha 360°. Give it a shot!
4. Retail/Office Occupancy Rate Declines
Based on Rahim & Co Research’s Property Market Review 2016/2017 report, office space supply in Kuala Lumpur hit 90.8 million sf in the third quarter of 2016, with average occupancy rate falling to 79.7% from 81%.
Let’s take Maybank as an example. Last year alone, it has closed 400 branches nationwide and 2,500 automated teller machines. According to its CEO Datuk Abdul Farid Alias’ statement, in the Rakyat Post, the demand is declining due to its online presence, so it doesn’t make economic sense for them to exist physically.
As you can see, technology does not only change the way businesses operate, but also where they are operating. Most companies (if not all) are now opting for remote working policy with virtual offices and some even preferred to have co-working space to cut down expenses. If this trend is staying, then it will definitely contribute to the low office occupancy rate. Same goes to retail shops. With online stores mushrooming, brick and mortar seems to be just for marketing and experience shopping platform.
So, there you go. To conclude, technology will have some kind of impact on the real estate industry - directly or vice versa. So, it’s up to the company to leverage on what works. What do you think? Share your two cents in the comment box below.
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(Written by: JL Chong, Edited by: Nisya Aziz, 17th August 2017)
