The proptech sector is set to impact and disrupt traditional business operating models in the real estate sector. Proptech (short for Property Technology) refers to the numerous startups and new technologies cropping up in response to years of inefficiencies and outdated processes in the real estate industry.
Mature economies in Asia Pacific such as Singapore, Hong Kong, and Japan have a significant opportunity to advance real estate transparency through proptech adoption. According to JLL’s Global Real Estate Transparency Index (GRETI) 2018, these prime investment regions are on the cusp of the ‘Highly Transparent’ tier and are set to join the ranks of the top group, which includes countries such as Australia, New Zealand, the U.S. and the UK. The proptech sector boosted Singapore to #1 rank in Asia.
Jeremy Kelly, Director, Global Research, JLL states “The proptech sector is growing fast, especially in Asia, though adoption is still relatively low compared to North America and Europe,”
“The potential benefits of proptech are certainly not limited to transparent markets. It could also help improve transparency in semi-transparent markets like China, which has a vibrant proptech sector, and where traditional data sources are lacking.”
“Asia Pacific as a whole has made the strongest transparency improvements since 2016 compared to the other four regions covered by the study,” says Dr. Megan Walters, Head of Research, Asia Pacific at JLL. “This is supported by developments in Myanmar, Macau, Thailand, India and South Korea.”
Improvements in transparency in some Asian countries have been accompanied by record-breaking commercial real estate investment volumes. In 2017, real estate transactions in the Asia Pacific region reached a record US$149 billion.
The relationship between an open and transparent market and higher investment activity is evident and one which has been thoroughly investigated and confirmed. The top ten transparent countries account for 75 percent of all investment volumes.