10th June 2020 / Sarah Lowry: What’s New: Emerging Technologies in Real Estate

The rise of technology in the real estate industry has been increasing at a rapid pace, culminating in an almost complete reliance on digital measures to continue transacting with the onset of the Coronavirus. In an industry where business is traditionally conducted face-to-face, COVID-19 pushed agencies to think outside the square as the landscape changed around them.

Digital Authorities and Contracts

Fletchers use of digital authorities and contracts ensured that we could continue listing and selling properties despite the physical restrictions in place. Real Time Agent digital authorities and contracts essentially provides agents with a digital point of sale experience, creating a seamless end-to-end solution. Victoria also led the way with digital conveyancing, implementing it as a legal obligation since October 2018. Property Exchange Australia (PEXA) is an online platform in which the transaction of a property is completed entirely online. This means that the entire process of transfer can be completed entirely through an iPad or laptop, in a matter of minutes!

Online Auctions

Auction streaming and online bidding became the new normal for a few weeks, with on-site auctions banned in Victoria due to COVID-19. Auction streaming platforms were in high demand and as most of us discovered in recent times, the use of video conferencing platforms such as Google Hangouts, Zoom and Microsoft Teams were also utilised. The Fletchers Group used the Real Time Agent bidding platform to register bidders and record bids, hosting an 'auction room' with Google Hangouts. Although on-site auctions have now returned, many believe that the future of auctions in Victoria could be a hybrid model that is part physical, part digital.

3D Virtual Tours

Whilst this technology is not new, the demand for 3D virtual tours increased dramatically as a result of the COVID restrictions. In fact, realestate.com.au reported a 466% increase in engagement with 3D tours in May 2020, over the previous month. Providing a fully immersive property inspection, the technology allows potential buyers to feel what it's really like to live at a property, all from the comfort of their own home.

Openn Negotiation

Openn Negotiation is an online selling platform designed to encourage buyer competition and provide the best chance of securing the best price, in the shortest time frame. Buyers can be anywhere in the world and aren't locked into specific conditions and this flexibility allows more buyers to participate, and to bid multiple times in a completely secure and transparent environment. Founded in 2016, Openn Negotiation is now the largest online and property sales platform in Australia.

PropTech refers to technology that is aimed at the real estate industry and attempt to change the way we buy, sell, finance and manage property. The current PropTech industry in Asia Pacific consists of 179 startups raising about $US4.8 billion ($6.26 billion) in funding since 2013. With PropTech funding in the region forecast to hit $US4.5 billion ($5.87 billion) this year, innovation in the real estate industry looks set to continue in earnest*.

*PropTech Summit 2019, Sydney Australia.