Real Estate Investor Magazine South Africa April/May 2019

‘It is clear that if a business is not looking at what the consumer really needs or how to use technology to benefit its clients, then it won’t be around for much longer. Disruptors like us are moving quickly to redefine real estate in favour of the consumer,’ says Leadhome co-founder Marcél du Toit. “ ‘Locally, the cumbersome way of selling a property had to be challenged and there are a number of companies, and even large banks, who entered the real estate industry. This is great because everyone is acting in the best interest of the consumer and DigsConnect.com’s Alexandria Procter echoes Du Toit’s statement that the underlying strength of a property tech company isn’t technology, but rather the way it enhances human relationships. ‘We’ve been super focused on building unique and personal relationships with as many of our landlords as possible. We try to call every landlord to chat about their property and their experience on the website. I think that this personal touch gives them peace of mind. Many of them have seen our crazy marketing stunts, and we end up chatting and laughing for ages,’ says Procter. ‘This isn’t a very ‘techy’ solution, in fact it’s quite old- school, but we love that and we never want to lose that personal touch. There’s something about real human connection that you just cannot replace with technology, but it’s also not technology’s job to replace that human connection. Technology serves a very specific purpose of improving efficiency, and the DigsConnect.com brand relies on leveraging technology to make stronger human connections.’ “ FNB’s announcement had everyone sitting up and listening. However, technology entrepreneurs have slowly been taking some of the property pie for years now. And they won’t stop with just the pie – throw in the plate, oven and kitchen while you’re at it. ‘invention isn’t disruptive, only customer adoption is disruptive’ Procter is a DigsConnect.com founder, along with Brendan Ardagh and Greg Keal. The website is Africa’s largest student accommodation website. It grew from an excel speadsheet in the UCT SRC offices, to a platform with over 30 000 visits each month and more than 50 000 beds listed to date. ‘It has been one hell of a journey,’ says Procter. ‘When I was on the UCT SRC, my portfolio was Day Students, which included where students live off-campus. I was inundated by desperate calls from students who had no place to live, and similarly by landlords who had available properties and no channel to market to students. I knew there had to be a better way, and so DigsConnect.com was born!’ “ According to Procter, the property technology sector’s underlying fundamental is to identify and solve key problems are helping to spread awareness consumers experience. ‘For us that you don’t have to pay it was about solving a problem enormous commissions, because that we ourselves were facing. Data doesn’t lie. If users keep the first thing alternative or Every year at varsity I struggled hybrid, flat fee agencies addressed coming back to your site, if your to find accommodation, as did was the high commission estate my friends. Then when I growth is phenomenal - chances all agents ask, usually in the region was in the SRC, I saw that this of 7.5% plus VAT, which is about are you’re onto something that’s student accommodation issue R120,000 on the average property was actually across the entire adding value to people’s lives. in most of South Africa’s major university. Then during the cities,’ says Du Toit. student protests later that year, Data tells the tales. I realised that it was actually Leadhome charges one flat across the entire country! There’s fee of R39 995 plus VAT to sell a a phrase I really like which says: property - regardless of its value. ‘invention isn’t disruptive, only The company also employ professional agents who are salaried customer adoption is disruptive’ and I think about this every and earn incentives based on getting the right outcomes for day. Data doesn’t lie. If users keep coming back to your site, their clients. This is very different from the traditional model, if your growth is phenomenal - chances are you’re onto where the agent gets a cut of the commission earned after a something that’s adding value to people’s lives. Data tells the successful sale. ‘By examining the old model and finding ways tales. to declutter the costing model, we have found a way to create more value for the consumer. So that’s why we’re not just an Procter believes that a dangerous place for property players, online model,’ says Du Toit. and real estate agents in particular, cashing in on the Proptech “ SA Real Estate Investor Magazine APRIL/MAY 2019 19

Real Estate Investor Magazine South Africa April/May 2019 | Page 21