Property Technology has significantly influenced the global real estate market. Based on the Jones Lang LaSalle, 2018, during 2013-2017, $7.8 billion were invested in Proptech startups worldwide.
This wave of Proptech disruption is still young in Southeast Asia as compared to countries like India, China, and Hong Kong. However, the growth in Southeast is rapid, with the number of internet users in the territory to reach 480 million in 2020. Google and Temasek Holdings projected spending of $9.9 million on online advertising.
The JLL report bifurcates Proptech evolution into three phases, Proptech 1.0(2007-2012), Proptech 2.0(2013), Proptech 3.0(2014-present). Proptech 1.0 started with increased house demands among the middle-class population owing to their income growth. Proptech 2.0 was a response to the requirements of small brokers and businesses. The technological advancement gave rise to Proptech 3.0, which uses methods like data analytics and virtual reality.
To date, Proptech 1.0 is popular in the Southeast Asia housing rental market. Brands like OYO Rooms (India), ZEN Rooms (Indonesia), RedDoorz (Singapore), and Travelio (Indonesia) have substantially penetrated the rental housing market.
For the real estate industry, the supply of short-term rental units is likely to increase in the tourist cities of Southeast Asia because of Proptech innovative and affordable hospitality services. Investors can benefit from inflated occupancy rates.
The regulations in Southeast Asian countries are increasing in the rental housing market. Nevertheless, real estate players are positive towards development.