Property technology has the potential to create a multibillion dollar market as China looks for new growth engines
- Better use of proptech will eventually help increase the contribution of China’s real estate sector to the overall economy, says industry expert
- Proptech plays an important role in building smart cities amid the rapid penetration of digital technologies in the world’s second-largest economy
Property technology can become the new growth engine for China’s slowing real estate sector as hundreds of smart cities being built across the mainland give technology firms an opportunity to create a multibillion-dollar market leveraging artificial intelligence, blockchain and big data.
Industry experts say the use of proptech in developing and managing properties can spur consumption, enhance efficiency and cultivate a feel-good factor to boost business morale.
Daniel Yao, head of research at property services firm JLL China, said that better use of proptech will eventually help increase the contribution of the mainland’s real estate sector to the national economy.
Industrial output of China’s property sector rose 3.8 per cent year on year to 5.98 trillion yuan (US$839 billion) in 2018.
As Beijing shifts its focus from investment-led growth to high-quality development of the economy through consumption and innovation, the real estate industry, particularly developers and property managers, are under pressure to pursue fresh opportunities to drive further growth.
Proptech also plays an important role in building smart cities amid the rapid penetration of digital technologies in the world’s second-largest economy.