Technology central to a dynamic residential property industry in SA
Category Advice
Not a single industry is immune to disruption and if the events of the past three years - a pandemic, record-high inflation, economic headwinds, war in Ukraine and the energy crisis - have proved anything, then it is that there is no status quo.
As such, resilience is a competitive advantage in business today. "Accept change, embrace disruption and utilise technology" may well be a mantra to (digitally) frame and repeat every day!
The property sector is by no means unaffected by disruption, despite a widely held perception that the residential property sector is still somewhat "analogue".
Proptech, defined by SA Proptech as "the use of technology to develop new ways of doing things in the property industry, often increasing efficiency, access, diversity and impact", plays an increasingly greater role in the business of property professionals today. Technology offers the tools needed to create new opportunities, further professionalise our sector and generate more employment opportunities. In light of these benefits, we simply must commit to ensuring we're embracing technology to deliver world-class service across the board.
South Africans have been comfortable with using online tools for doing everything from shopping for groceries to buying or selling property, for a while now, and even more so in the wake of the pandemic where transacting online was the safest way of going about our business.
Proptech, in its simplest form, already ensures that information about property is freely and readily available on various online portals, which serves to empower buyers and sellers by informing them about property prices, market conditions and the like. Access to this kind of information empowers the client, which in turn makes for a far more dynamic property transaction, ultimately making the entire property industry more robust, more competitive and more professional.
Digital technology and the access to information it allows for brings a level of transparency to the property market that further empowers the client. Not only does this make it more convenient for buyers and sellers but it also enhances the quality of the decision-making process.
Access to this information is made possible through the proliferation of data. Data - simply information about clients and markets - is one of the most valuable assets in business today. Data takes the guesswork out of decision-making by offering relevant insights and analysis that work to inform strategy. In property particularly, this can help to predict market fluctuation which in turn can help roleplayers plan how to best take advantage of associated opportunities.
It remains our responsibility as property professionals to treat that data with integrity at all times, which includes the responsible gathering, storing and application of any customer data.
AI is here to stay
Artificial Intelligence (AI) is on everyone's lips in 2023 as innovations like ChatGPT take the world by storm. While still in its infancy in South Africa, AI has the potential to bring a dynamic level of innovation to the sector.
There will, eventually, be a myriad ways that AI will support and enhance real estate, but at first the technology will help agents and buyers make better decisions. According to this Verizon article, "by supporting more agile condition-based property valuations, AI in real estate enables agents to price homes quickly so they can respond faster to buyers and sellers.
The technology mindshift
The successful adoption and implementation of any disruptive force starts with a collective mental shift that recognises the value of being agile and embracing new technology for the benefit of the industry, its practitioners and, most importantly, its clients. Sometimes criticised for being too "analogue", the property industry's challenge - and opportunity! - is to effectively incorporate proptech to streamline various processes while ensuring the role of the property advisor evolves in line with the changing, dynamic needs of the client so that it adds measurable value, and that requires unpacking what it is that human beings bring to the table that technology.
The empathetic touch
As it stands technology cannot replicate what a human being brings to the transaction - empathy. Empathy, defined as the capacity to understand what another person is feeling from their frame of reference, is increasingly understood as fundamental to productive business relationships. Property, in particular, is a complex service industry where the human touch plays a key role in contributing to a pleasant buying or selling experience. For example, navigating the myriad legal and financial requirements of purchasing property with a trusted, experienced property advisor by your side can help to speed up the process and make it more pleasant, simply because a professional property advisor brings their experience, expertise and empathy to the table in a facilitating role
Proptech and the strategic, responsible application of data has the potential to make the property industry more agile, to function more effectively and to respond timeously to the evolving needs and preferences of our clients. There's every reason to embrace it with open, empathetic arms.
Author: Leapfrog Property Group
