Real Estate Investor Magazine South Africa May/ June 2020 | Page 14

TECHNOLOGY
How PropTech is disrupting
the property industry
And why it’s necessary during the Covid-19
pandemic & beyond
CARL COETZEE
P
roptech (like many other terms that end in “tech”) has
become something of a fancy buzzword, which is
why it is useful to turn to an expert on the matter for
a comprehensive definition. James Dearsley, co-founder
of Unissu, explains that proptech is “one small part of a
wider digital transformation [that] considers both the
technological and mentality change of the real estate
industry”. In its simplest form, proptech is the application
of technology for new ways of conducting business in the
property sector, with the focus on efficiency and impact. 
The stats certainly support the role digital technology is
playing in shaping various aspects of the sector. A global
survey conducted by KPMG in 2018 showed that 97% of
the 270 respondents from 30 countries believed digital
innovations are influencing their businesses somewhat. 
In South Africa too we’re adopting more PropTech solutions
in various parts of the sector and there’s every likelihood that a
digital-first approach to property will become more pervasive
in the coming months and years, and particularly as we look
for innovative ways to strengthen and grow the industry
amidst the global Covid-19 pandemic. Proptech can help
make the industry more efficient and more resilient, with the
purpose of driving more value for clients in the most relevant
way.
Here are some of the key ways in which digital technologies
are likely to impact the property market, many of which are
already at play. 
Data & analytics 
Data is increasingly becoming the modern business’s most
important and valuable asset. The ability to capture, interpret
and analyse relevant information makes it easier to spot
trends and make strategic decisions that have a positive
impact on the business at large.
Data effectively takes the guesswork out of decision-
making, which in the property sector can help decision-
makers predict market fluctuations and plan accordingly, as
well as take advantage of opportunities. And, as technology
becomes more sophisticated, it becomes easier to leverage
the tools needed to access and interpret the data. 
Consumer empowerment 
The transparency and convenience that digital technology
allows for means much of the power has shifted to consumers,
which in turn means they are able to make more informed
decisions. 
While it’s too soon to make accurate predictions on what the
impact of the lockdown and the global Covid-19 pandemic
will have on the property market, it is sure to disrupt the
industry one way or another. And disruption, history teaches
us, isn’t necessarily a bad thing. In fact, it’s often exactly what
an industry needs to bring about new opportunities.
12
MAY/JUNE 2020 SA Real Estate Investor Magazine
At the most basic level the nature of the interaction
between the agent and buyer has changed significantly as
digital resources bring the information about properties closer
to them, helping them narrow their search and empower
them with all the relevant information pertaining to their
search and interests. Having said that, the role estate agents
play in property transactions remain vital.
While the digital tools help to make information more
readily available to the client, the agent offers advice and
expertise that are invaluable in the home-buying process.
When clients are equipped with the right knowledge and
resources, they are able to make smarter decisions that
ultimately enhance the industry. 
Streamlined processes 
With most property companies having to embrace remote
work, they've also had to become more adept at using new
technologies. This time of social and economic uncertainty
also presents an opportunity for the property industry to
streamline processes, to embrace digital technologies more
widely, to rethink age-old ways of thinking and doing, and
to strive more earnestly to ensure the client is at the heart of
what we do. 
When the world emerges from the crisis, the companies
that stand out will be those who've leveraged these
technologies to provide clients with the best possible
products and services, amidst the limitations and uncertainty
that prevailed. 
“Proptech is the application
of technology for new ways
of conducting business in
the property sector, with
the focus on efficiency and
impact.”
MD of the Rawson Property Group, Tony Clark says: “There’s
no doubt that we have needed to act quickly to continue to
serve our customers in these challenging times. No matter
what is happening in the world, people still need a roof over
their heads, which will always mean that they need to be able
to keep buying, selling and renting property. We have also
seen a rise in the urgency with which some of our clients are
needing assistance.” 
“The value of virtual show houses at the moment is
obvious. It’s going to be some time before any of us will feel
comfortable having dozens of strangers visiting our homes, so
enabling them to take a live, high-quality, virtual walkthrough
of our properties, and having an interactive experience with
our agents in real time, is essential,” says Clarke.
“More and more, we’re seeing buyers and sellers, landlords
and tenants looking for property services that are adaptable
to their personal circumstances. If the Coronavirus pandemic
has done anything for our industry, it has shown us that sellers
and landlords will be demanding virtual solutions to ensure
that their interaction with the marketplace is as remote as
possible so as to preserve the safety element so desperately
required while social distancing is commonplace,” says Clarke.
As a sector we need to be mindful of the impact
technology has on our business, but we also need to
embrace its power and potential for improving both business
operations and client experiences. Though only time will
tell, early indications are that those who are strategically
embracing PropTech are likely to better weather the storms in
the coming years.
SOURCES BetterBond, Unissu, KPMG &
Rawson Property Group
SA Real Estate Investor Magazine MAY/JUNE 2020
13