Darius Cheung, founder and CEO of 99 Group, spoke at Tech in Asia Conference in Jakarta yesterday. / Photo credit: Tech in Asia
With a large population and a wave of digital transformation, Southeast Asia is poised to become a hub for property technology innovation, with significant opportunities for growth amid unique challenges.
As the region’s real estate market continues to expand, investors and startups alike are eyeing the potential of proptech – a field that uses technology to improve real estate services.
However, there are hurdles in the space, particularly in securing sector-specific funding and navigating the slow-moving nature of the real estate industry.
These insights were shared during a 40-minute panel discussion at the Tech in Asia Conference, co-organized by The Business Times in Jakarta on October 23.
During the panel, Ethan Cheng, managing partner at Feedback Ventures, a VC firm focused on early-stage real estate startups, pointed out the limited availability of proptech-specific funding as a key challenge in Southeast Asia.
“Unlike in the US, where you have proptech-focused venture capitalists, Southeast Asia’s startups often rely on generalist VCs or non-strategic investors, which can stunt growth,” he said.
He emphasized that these investors, often focused on fintech or other sectors, may treat proptech as an afterthought, limiting the startups’ ability to scale.
However, he sees this as both a challenge and an opportunity. With few dedicated proptech investors in the region, there is an untapped “blue ocean” for those with the conviction to invest in the space.
“Real estate is a massive business in Asia, and there will always be opportunities to improve the industry with innovative business models,” he said, adding that startups willing to take the long view could find a less crowded, more lucrative market.
Sabrina Soewatdy, chief executive officer of Rukita, a Jakarta-based property management startup, echoed this optimism.
She described the enormous potential for proptech in the region, particularly in Indonesia, where her company has navigated the pandemic and tech winter to build a profitable model.
She acknowledged that markets such as Thailand, Vietnam, and the Philippines are poised for similar proptech-driven transformations, propelled by the universal need for housing and better real estate solutions.
“We’re incredibly bullish on what proptech can achieve in the region,” she said.
AI adoption in proptech
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