How clever tech tools are changing real estate for good

Proptech has been described as the ‘tech tools’ for the real estate industry. It really came to the fore during the pandemic but it's here to stay.

Residz Team 3 min read

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As Gen Z and millennials want (and expect) their smartphones to run their lives for them, proptech is rising up to meet them.

Proptech has been described as the ‘tech tools’ for the real estate industry. Proptech really came to the fore during the pandemic when real estate and property professionals, buyers, sellers and renters were forced online to do all their research and transactions.

One Proptech CEO Fatima Dicko of Sugar told Crunchbase how far it could go. She says there’s an increased demand from Gen Z for “digital solutions to pay rent and unlock doors, along with touring properties and signing rent agreements virtually.”

Proptech is already a $21 billion industry and Gen Z will ensure the only way is up.  
In this article we look at what a proptech company is, types of proptech, the best proptechs in Australia, and how proptechs solve problems.

Contents:

What is a proptech company?

Is proptech and retech the same thing?

What are the types of proptech

What is the difference between a B2B proptech and a B2C proptech?

Who are the best new proptechs in Australia?

5 key trends in how proptechs are solving problems

What is a proptech company?

A proptech company (property technology company) is one that marries information technology, artificial intelligence, platform economics (such as ‘digital matchmaking’) and the real estate market. It bypasses or enhances the work of the traditional real estate industry.

During the pandemic, proptech became more visible as it allowed property buyers, sellers, renters, investors, and owners to research and transact all aspects of the real estate market online.

Proptech companies exist across the real estate industry, and by offering more data, greater choice, a cheaper service, and direct ‘matchmaking’ capabilities for businesses or consumers, they are disrupting the world’s biggest asset class - property.

Is proptech and retech the same thing?

Proptech is known more widely as ‘real estate technology’, ‘retech’ or ‘ReTech’ in the U.S. In 2021 there were 2234 retech companies in the U.S. alone. According to unissu, around 60% of those U.S. retech companies are working in the residential sector, 49.8% in the commercial sector, and 11.5% in retail. The three most popular cities for founding retech companies are New York, San Francisco, and Boston.

What are the types of proptech?

There are dozens of sub-types, but the two main types of proptech are CREtech and REtech, namely commercial real estate technology and residential property technology.

Residential proptech deals with property search, real estate listings, financing tools, property management tools, and mortgage lender software.

Commercial proptech covers such things as property search, construction management tools, evaluation and financing, and asset utilisation tools. (Source: AscendiX)

How big is the proptech industry?

According to Crunchbase, venture-backed companies in the real estate and property tech space raised nearly $21 billion in 2021, with construction and property management spaces named the ‘standout sectors.’

Who are the best new proptechs in Australia?

There are dozens of new and growing proptech companies in Australia, offering a range of services for all players in the property industry. Here are some of the best new proptechs that are streamlining services for buyers, sellers, and renters.

  • PropHero - A platform that analyses, negotiates, buys, settles, and manages your investment property to ‘get you the best returns.’
  • Different - A fresh and proactive take on property management that combines people who care, with easy to use technology, ‘keeping you up to date and in control.’
  • OwnHome - OwnHome will buy the home for you in OwnHome's name, but ‘hand you the keys.’ You make monthly payments and ‘when you're ready, buy the home at a pre-agreed price and put your accrued deposit towards it.’
  • Residz - Helps you learn more about an individual property for free. Whether buying, selling or dreaming, you ‘research over 12 million properties across Australia’ on investability, crime, bushfire risk and more.
  • Rental Heroes - Property management software that ‘helps create brilliant rental experiences by removing communication bottlenecks and enabling instant decisions.’

5 key trends in how proptechs are solving problems

Industries are only disrupted if the disruptors clearly solve problems for consumers and other stakeholders. So we thought we’d share Proptech Association of Australia’s President Kylie Davis recently-made and thoughtful observations on 5 key trends in how proptechs are solving problems:

  1. Saving time - proptechs are automating repetitive tasks, streamlining complicated and time-consuming manual processes.
  2. Saving money - proptechs are able to deliver services at a cheaper rate.
  3. Empowerment - proptechs are using big data, analytics and processes to empower buyers and tenants by delivering transparency around transactions and processes.
  4. Releasing new value from old assets - proptechs are enabling parts of buildings that have been unproductive, or difficult to monetise, to become viable options for new revenue.
  5. Accurate pricing of risk - proptech is providing greater transparency around the real costs of materials, labour, and time delays, and this in turn is allowing assets to be valued more quickly and more accurately.

If you’re considering purchasing or renting a house, make sure you download our free property report for that address. We have 12 million addresses in our database, with every report offering information on internet speeds, crime trends, bushfire and flood risks, investability scores and a whole lot more.

Photo by bruce mars on Unsplash