How is tech changing the property market?

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20 years ago, who would have imagined that the internet would be the first place we’d look when buying or renting a house? Yet here we are, now even making property agents obsolete thanks to technology and innovation.

The property space is one industry heavily disrupted by technology, and continues to evolve. The consumers are the obvious winners. These advancements make their lives more convenient after all.

Looking forward, a lot can change. The property tech (prop-tech) space has tremendous opportunities for growth and transformation. Here are a few that we can already see, simmering on the surface.

Virtual reality

Virtual reality (VR) is growing in popularity as a way of marketing property. In the prime London market, where people often live thousands of miles away from their properties of interest, it proves to be a handy tool indeed.

The use of VR in real estate is already a US$1 billion global industry.

The use of VR in real estate is already a US$1 billion global industry. Goldman Sachs even estimates that it is set to treble by 2020.

Australian startup, StartVR, is currently offering real estate VR among its other VR-related services, while Sotheby’s International Realty has already started showcasing high-end properties in Los Angeles using Samsung’s Gear VR last year.

This trend has caught up with us quicker than we thought. A few sites are already experimenting with virtual tours of homes to encourage renters and buyers to experience the living space in a more realistic way without having to physically be at the property.

The sharing economy

The new generation of decision makers don’t believe in the concept of owning everything. It is so much easier to share or exchange holiday homes, cars, and even clothes.

With companies such as Uber, Grab, Airbnb, eBay, Alibaba, and Carousell, the need for owning “new things” is not as pressing as before, especially when it comes to more expensive items.

This habit of sharing involves the property market as well. According to URA, the number of rental transactions stood at 56,417 last year—an increase from the 50,417 cases in 2013, and 48,785 in 2012.

Flexible workspace

With the new trend of virtual workspaces, the concept of a fixed office as we know it may change dramatically.

Julien Smith, cofounder and CEO of Breather, pointed out factors that disrupt traditional office spaces. He says increasing interconnectivity, mobility, and work flexibility will have an impact on property prices in urban centers.

Transportation will make the world smaller

Nanotechnology to the rescue

Automation will make maintenance cheaper and more efficient

Sustainability and eco-friendliness

3D printing of houses