Greater Bay Area’s ‘proptech’ growth is stymied by the lack of tech-savvy real estate professionals, survey finds
- About 79 per cent of the 98 companies and 21 executives polled by the survey said proptech is of ‘high strategic importance’ to the property industry
- Between 2012 and 2021, about 1,100 proptech transactions worth US$67.9 billion occurred in Greater China, Ernst & Young said in its poll with the Urban Land Institute
“Between 2012 and 2021, about 1,100 proptech transactions valued at US$67.9 billion occurred in Greater China,” the study said. “The single investment amount before 2019 was at the US$10 million level, and by 2019 and 2020, the single investment amount exceeded the US$100 million threshold. Beginning in 2021, the proptech investment market started to cool down.”
More than a third of interviewees “adopted proptech strategy to improve operational efficiency and reduce costs,” said E&Y’s Greater Bay Area strategy and transactions partner Chris Chan.
“However, there are hindrances in the actual implementation, [with] 34 per cent of interviewees highlighted challenges associated with system integration, 27 per cent of them lacking in-house talent,” Chan said. “22 per cent of them said proptech strategy is not of the highest priority among all corporate strategies, while 14 per cent reported that existing corporate culture is not open to change.”