TECHNOLOGY
The Future of Real Estate Lies in Tech
A South African Perspective
BY MARGOT GUTTERIDGE
W ith the world catapulting towards the fourth industrial age , the real estate industry is evolving rapidly too , with nimble , digital operational models rapidly gathering steam . People ’ s lives have moved online and their real estate demands have too .
Prop-tech companies like PropertyFox are at the forefront of this digital disruption in South Africa . The online-only property company is using technology to offer more efficient and cost effective ways to buy and sell real estate . PropertyFox has saved consumers close to R10 million in fees since its inception in April 2017 - and offers a very transparent process which keeps the client involved throughout .
It ’ s this future-focused , digitally-savvy approach that led SA Home Loans to acquire a 49 % stake in PropertyFox – an investment that will fuel the expansion of the business across South Africa , whilst facilitating continuous innovation .
Kevin Penwarden , CEO of SA Home Loans says PropertyFox ’ s business model is compelling as its success has been proven elsewhere in the world , “ PropertyFox resonated strongly with us . We believe the rise of tech and its integration into every aspect of the real estate process is good news for the future of the industry , with Big Data , Virtual Reality and other advances already bringing about substantive changes that benefit consumers .”
Crispin Inglis , CEO and co-founder of PropertyFox says the industry is changing at a rapid rate , “ Following the global credit crisis and recession , the number of practising real estate agents registered with the Estate Agency Affairs Board has gone from 80 000 members in 2007 , to 30 000 in 2017 . In ten years , the landscape has completely changed , with people attracted by the cost- and time-efficiency of finding property online . Ultimately , an approach which combines tech with a consumer-centricity is what the modern consumer is used to in other industries , and what they have taken to rapidly in the property sector too .”
In a recent ShareNet article , Mark Mayer an investment specialist at Discovery Invest suggests that – if you want to gauge the extent to which the internet has organically changed the process of buying and selling a house – you could try asking a traditional estate agent to find buyers without using a portal such as Property24 . “ Just wait and see how all these serious buyers that were perfectly suited to your property miraculously evaporate into thin air .”
Mayer says that , in his personal experience around property research , it is almost entirely conducted over the internet , and it is his strong contention that it is by far the most productive channel for lead generation utilised by estate agents today .
Inglis says that , very soon , long-term behavioural data , social media interactions , browsing history and psycho- and demographic factors will inform individual psychographic profiles for buyers . This will replace the generic browsing filters used today . Profiles will become ever more specific and buyers will be able to receive an instant response of relevant properties suited to their psychographic profiles . They ’ ll then be able to explore ‘ matched ’ homes through virtual reality tours , with haptic gloves and olfactory VR providing a multi-sensory feel for the environment .”
On the other side of the equation , he says sellers will be able to use big data to input highly accurate specs for their home and neighbourhood and then target an increasingly select group of ‘ ideal ’ buyers with matching psychograph-
16 FEBRUARY 2018 SA Real Estate Investor Magazine