Login
iscover
The real estate market is a major industry in Australia, employing tens of thousands of people and generating billions of dollars in revenue annually (forecast at $29.3 billion in 2023).
However, the traditional real estate industry has been relatively slow to adopt technology, and until recently, it relied on traditional methods for buying, selling, and renting property. The emergence of data-driven “PropTech” though, has revolutionised the real estate market.
Proptech (or property technology) itself refers to technology and data-enabled innovation in the real estate industry. It encompasses a range of capabilities, including online marketplaces, virtual reality tours, and property management software — all driven by a proliferation of market and customer data. The impact of proptech on the Australian real estate market should not be underestimated, with recent investment topping $1 billion, making Australia one of the fastest growing proptech markets in the world.
Structurally, the most significant impact of PropTech has been to increase the efficiency of the industry, while providing the potential for innovation. In the past, buying and selling property could be a time-consuming activity, due in part to complex regulatory processes around property ownership and financing. The emergence of online marketplaces and other proptech platforms is enabling networks like Harcourts to streamline the end-to-end process and to increase the scale and breadth of their offerings.
This shift in the industry has resulted in both challenges and opportunities for organisations like Harcourts, whose key considerations now include:
1. Technology: Proptech such as data platforms, online portals, and digital marketplaces have made it easier for agencies to access both market and third-party data, as well as back-end transactional systems. The removal of technological barriers is accelerating Harcourts’ capabilities and promises to transform the entire industry.
2. Efficiency: Technology has also increased the efficiency of traditional real estate agencies by streamlining various processes, such as property management, marketing, and transactions, thereby reducing the workload on agents and allowing them to focus on differentiated services like relationships, local expertise, and customised selling approaches.
3. User experience: These new solutions are continuously improving the customer (and agent) experience by delivering more transparency, convenience, and flexibility. For example, AI-enabled valuations, virtual inspections, and 3D property modelling provide previously unavailable benefits for sellers and buyers alike.
4. Competition: Proptech is enabling new players to enter the industry with alternative business models, although most have struggled to achieve traction in Australia’s already sophisticated property market. Existing leaders are adapting to these changes by embracing technology to better leverage the skills, experience, and personal relationships of its large network of agents.
Competition has also increased the demand for talent, highlighting the importance of personal relationships in property sales. Harcourts is similarly using PropTech to ensure that high-performing agents have the latest market and customer data at their fingertips, within easy-to-use tools.
According to Harcourts International’s chief financial officer, Kym Warner, proptech has “completely” transformed their approach, “with the increased reach and efficiency of data platforms allowing our agents to focus on what they do best — building relationships in the community and matching the best properties to prospective buyers”.
“Likewise, internally, our agents have come to expect better market insights, as well as more flexible and sophisticated tools as a matter of necessity.”
So, what does this mean for buyers, sellers, and the industry as a whole? The truth is, this is just the beginning — real estate is like many other industries whose time for innovation has finally arrived. Stagnant bureaucracy and complexity has collided head-on with a rampant data and technology onslaught, resulting in massive disruption. While change can be stressful, the good news is that all parties stand to benefit from a more efficient, transparent, and competitive environment.
What happens next depends to a large degree on the adoption of PropTech by the leading incumbents. As Harcourts is demonstrating by doubling down on its people, efficiencies and streamlining mean agencies can invest in what really matters — providing personalised service and expertise to clients. As demonstrated by fintech before it, proptech will have seismic impacts in Australia over the next few years.
By Brad Kasell, principal technology strategist, Domo Australia, and Kym Warner, Harcourts International chief financial officer
You are not authorised to post comments.
Comments will undergo moderation before they get published.