Accessible real estate for a new age

While the rise of technology helps drive a level of competitive advantage in the real estate profession, it has also become a challenge to keep up with the Joneses. Now, it involves a bit of a juggling act to satisfy traditional real estate methods and integrate PropTech for the increasingly digitallysavvy demographic entering the market.

The arrival of PropTech has seen thousands of new companies provide the industry with a plethora of choices — and this choice is flowing through to a profession that, for more than half a century, operated in traditional ways.

Technology has a habit of changing and improving rapidly, and ensuring a brand or agency stays current and relevant is often more of a challenge for incumbents than for those entering the digital market for the first time. In this case, being late to the party may pay off for some. Observing the overall trend of where customer appetite sits is as key as determining which areas of your business should be digitised.

A new age — a new demographic

Many real estate businesses are paying attention to the rise of technology in the arms of their future vendors and buyers. They are looking to enhance their offerings for mature, seasoned customers and to attract and retain a key demographic — Millennials and Gen Z.

This digitally savvy group are now generally looking to rent or purchase a first home — or have just reached home ownership. Agencies and brands have an opportunity to connect in non-traditional and innovative ways that may challenge their thinking and their business models.

We know digitisation enhances transparency, which has become increasingly important, particularly with the younger generation. Engagement with a real estate process now often starts with a digital connection and leveraging that relationship can be enhanced through connected services that continue that digital engagement.

Here are some examples of transparency and digitisation that are becoming more widely used throughout real estate: ▪ Virtual viewing and tours

▪ Online AML verification using biometric and document recognition

▪ Online rate my agent

▪ Digital documentation

▪ Blockchain enabled smart contracts (see page 40 for more)

▪ Transparent bid management

▪ Digital bookings, appointments, rate comparisons, league tables

▪ Smart social media listings to engage with, connect and present properties.

It’s all about balance

Agencies will need to decide the extent they overlay a more traditional approach to real estate for those who want it and a digital experience for the younger generation. A multimodal and multichannel experience for agency customers will likely present several challenges for those looking to operate on both ends of the spectrum. This is due to brand positioning within the market and how a brand may want to be perceived by its customers, along with creating multiple entry points for contact, communication, and engagement with customers — all of which must flow back and integrate with lead management and CRM systems.

The creation of products and services that target a technically savvy generation will provide an advantage over those that fail to recognise the shift already underway.

Swiping your way through real estate

PropTech is geared to create new offerings and more socially engaging ways people can interact and connect with the profession. The recently launched Australian real estate app 1060 offers a TikTok take on home inspections. It targets the younger

generation in a way they are used to operating — swiping through short, catchy clips and making it more enjoyable. It gives sellers a free way to create and upload content efficiently and gives buyers a quick and effective search option that allows them to connect directly with an agent.

The evolution of PropTech is enabling a combination of synchronous and asynchronous interactions with younger generations who have high digital expectations to engage across a variety of platforms and timeframes.

These platforms might include real-time messaging platforms, digital approval, rapid viewing and assessment of virtual properties, meetings and appointments, or payments.

Digital trust — a necessity

It doesn’t just stop there. Digital trust is also crucial to this demographic, who are accustomed to actively reviewing, assessing, and providing feedback on their experience. This can be seen in the growing popularity overseas of digital multisided platforms (MSPs) — technologies, products or services that create value by enabling direct interactions between two or more customer or participant groups.

MSPs can simplify the delivery and aggregation of real estate services such as viewing listings, comparing rates, scheduling and booking appointments, and making payments. All this, without the biases, information asymmetry, and additional costs associated with middlemen.

These platforms are creating an end-to-end, experience-driven ecosystem by taking care of requirements such as packing and moving, and utility connections without being associated with an agency or particular brand. For instance, Movinghub, a global PropTech platform providing people with a convenient way to organise moving home online. It’s a free service that many New Zealand real estate agencies integrate into their software.

The result? An additional streamlined service for clients who purchase or rent a property with the agency. It’s a prime example of a service aggregator with social media rating capabilities.

The profession currently stands at an inflexion point as it re-evaluates its past practices and adapts to the needs and preferences of a more digitally enabled consumer demographic.

Considering the existing and emerging trends, the convergence of digitisation and PropTech innovations will continue to shape the New Zealand real estate profession for the foreseeable future. Having said this, it will still require a bimodal approach to meet the needs of the emerging and traditional customer segment groups.

The creation of products and services that target a technically savvy generation will gain an advantage over those that fail to recognise the shift already underway.

Digitisation is megatrend 2 in REINZ’s Megatrends report. This article also touches on generational expectations — megatrend 9. This megatrend states the profession should harness technology to ensure increased transparency to improve trust. Based on substantial research, the report also shows how digitisation will impact the New Zealand real estate profession: ▪ Agents will need to stay abreast of PropTech advances and plan for what will be automated ▪ Agents with high emotional intelligence, problem-solving skills, and the ability to form strong relationships will continue to be in high demand — the future of real estate remains distinctly human despite technological advances ▪ Blockchain and other technology will enable enhanced transparency and should be embraced by the sector to provide greater transparency to build trust. This will be particularly important for younger generations.

Miles Fordyce, Chief Digital & Innovation Officer, REINZ