How proptech is changing Hong Kong’s property industry
Start-ups in Asia-Pacific have received US$4.8b, or over 60pc of the world’s proptech investments, with Hong Kong and China taking US$3b of that amount
Proptech, the convergence of property and technology, is reshaping the way real estate is built, occupied, managed, transacted and recorded. Like the financial technology (fintech) industry, the proptech industry revolves thousands of start-ups looking to disrupt the way real estate markets work, and the venture capitalists who support them.
In Hong Kong, some companies working in property have begun adopting proptech, but by and large, the industry and regulators have been slow in tapping into these advances, which analysts attribute to a few factors.
● Hong Kong’s high living costs and history as a traditional financial centre have held back innovation and tech development, according to JLL.
● Red tape. Regulators are swamped with daily tasks, and would require a special task force to lead the initiative, says chairman of the land surveying division at the Hong Kong Institute of Surveyors (HKIS) Conrad Tang.
● Highly competitive agency business and stagnant secondary market. Home sellers are not incentivised to invest in marketing.
Still, the private sector has benefited by adopting proptech solutions, such as co-working space operators using sensors to detect vacant rooms and cubicles to fully utilise space, says JLL.
And such growing trends are drawing investments. JLL said in a November report that 179 start-ups in Asia-Pacific have received US$4.8 billion, or over 60 per cent of the world’s proptech investments since 2013, with Hong Kong and mainland China taking US$3 billion of that amount.