Real estate industry must stay relevant or risk being left out

SELANGOR: To hop on the digital disruption bandwagon, there are many possible ways that the real estate industry could work with relevant tech start-ups.

“For example, with data insights provided by tech start-ups, property developers can make an informed business decision by determining the kind of developments they should undertake to meet consumer demand,” cited Celcom Planet Sdn Bhd (11street.my) senior manager for seller and strategic business division Bernard Lee.

“On the other hand, consumers are able to find and get the best deals at their convenience and needs with optimisation algorithm tools provided by tech start-ups,” he told TheEdgeProperty.com.

Lee will elaborate more on this at this year’s Malaysian Annual Real Estate Convention (MAREC‘17) on March 3 and 4 at Setia Alam Convention Centre in Shah Alam, Selangor. The convention is organised by the Malaysian Institute of Estate Agents (MIEA).

In his presentation entitled “IT start-ups: friends or foes?” Lee said he would look into the pros and cons of digital start-ups and what property agents and negotiators could expect in the market.

“While traditional property marketing methods are still very much alive today, digital marketing can be used to influence and interact with prospects and customers.

“We see a very large number of agents and negotiators utilising online property portals and social media as key components to their property marketing strategy largely because consumer behaviour has changed considerably over the last decade, with 90% of property buyers making their searches first on the Internet before any other form of media as it is both instantaneous and convenient,” said Lee.

He added that his talk will also touch on the millennial property buyers’ trends and behaviour as well as their expectations from property agents today.

“We have come to a point where agents and negotiators must leverage tech to stay relevant in the game or be left out in this fast-moving ‘bullet train’ of opportunity,” he said.

According to Lee, there is no one-size-fit-all solution when it comes to digital transformation.

“Hence, they [property developers and agents] need to understand these property-related tech start-ups’ business propositions, and their consumers’ demographic and reach, prior to defining their go-to-market approach and strategy for their property portfolios.

“With these in mind, it is also possible for property developers or agents to venture into expanding their sales channel to e-commerce platforms in the near future. E-commerce marketplaces like 11street place an emphasis on customer segmentation through data analytics and property developers will be able to leverage this for an optimised and targeted marketing,” he noted.

Meanwhile, the upcoming MAREC‘17 will also see William Yap Training Coaching and Services founder and trainer William Yap speaking about the implications of augmented reality (AR) and virtual reality (VR) in real estate.

“Agents can utilise VR to give their potential buyers a better experience of a property regardless of where the buyers are. It also gives them [agents] another marketing avenue to showcase their listings with a 360-degree view or virtual property tour instead of relying on photos only.

“Meanwhile AR can assist agents to make floor layout plans effortlessly or to incorporate virtual furniture, floor tiles or even different wall colours for a real environment on their smart devices to give a better viewing experience to potential clients on the spot,” he says.

Yap is not worried that property agents might go obsolete one day, as technology is not able to solve human problems like price negotiations or disputes.

“It’s not as simple as adding a property into your shopping cart and clicking ‘OK’ to pay with your credit card.

“And many people don’t have the time and resources to sell their own property due to their job commitment, location or other circumstances, hence the service of a real estate agent is still required.

Technology, in his opinion, will get the agents’ work done faster and better, enhance potential buyers’ buying experience and equip owners with data needed to achieve good results. “It may refine their role but it won’t replace them,” he says.

Themed “Transforming your real estate business in a changing era”, MAREC‘17 will feature other speakers from various industries, including start-ups, to talk about adapting to changes in this digital era. For more details on the convention, go to miea.com.my/marec17.

This story first appeared in TheEdgeProperty.com pullout on Feb 17, 2017, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.