Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 253

Property and why PropTech is the future

The current pace of technological change is unprecedented. Whole industries are being transformed or disrupted as businesses look to do things smarter, cheaper, and quicker.

The property industry is not immune to this change. The convergence of property and technology, coined ‘PropTech’ is about leveraging new technology into the property ecosystem to create entirely new transaction, delivery, management, and service models for property businesses, their customers, and the built environment.

Two years ago, no one was really talking about PropTech. Maybe the physical nature of property gave us insiders some comfort that the disruption that was creating havoc in sectors such as financial services would not affect our industry. But now, inspired by the success of two of the most successful start-ups in history, Airbnb and WeWork, PropTech is front and centre.

The impact of technology on real estate

Big data (data analytics), the internet of things (connected devices), cloud computing, artificial intelligence, virtual reality, Blockchain, drones, 3D printing, and robotics are just some of the innovations reshaping the property landscape. Their influence is permeating just about every touchpoint in the industry from listing and search services to marketing, transacting, conveyancing, property and facilities management, leasing, space utilisation, customer engagement, urban planning, design, construction, valuation, lending, payment services, and research.

It is not just the technological innovation in our sector that is forcing change. The tenants of our buildings and the users of the urban environments we create are also being affected. As a result, their demands and expectations of our buildings and cities are also changing. Connectivity, mobility, flexibility, and wellbeing are now part of their lexicon.

KPMG’s inaugural Global PropTech Survey, released in November last year, found that 92% of respondents representing property owners, investors, managers, financiers, advisers, and agents believe that digital/technological innovation will have a significant impact on their business. Surprisingly, 86% saw it as an opportunity. However, there’s a wide gap between acknowledgment and adoption. Just over half gave themselves a rating of five or less (out of 10) in relation to their digital/technological innovation. They know that technology is critical, and offers a business opportunity, but they have yet to develop and implement a digital strategy to help their business remain competitive.

Partnering and recruitments

The recent announcement by Stockland that Robyn Elliot was moving across from Fairfax Media to a newly created position of Chief Technology and Innovation Officer and Scentre’s (ASX:SCG) announcement late last year that Cynthia Whelan had been lured from Telstra to be Chief Strategy and Business Development Officer sends a strong message to the industry that technology is changing things in ways that many of our largest property owners and managers could not have imagined a few years ago.

In announcing Elliot’s appointment, Stockland’s chief executive, Mark Steinert, pointed out that it would create “the opportunity to capitalise on the synergies between innovation and technology … and further enhance our ability to progress commercial outcomes from innovation projects.”

Yet it is not just about bringing smart tech people inside the business. Some of the industry’s largest incumbents are establishing incubator programs to partner with start-ups.

JLL (NYSE:JLL) has established Spark, an independent unit to “ensure that JLL and its clients benefit from technology-driven transformation by building a team that will create new products, make strategic investments and incubate PropTech start-ups.”

Charter Hall recently announced a property start-up accelerator program in collaboration with Collective Campus, an innovation hub and start-up accelerator consultancy firm. The program has identified four start-ups – lnSpaceXR (virtual reality), BricksandAgent.com (cloud-based property management platform), Snaploader (3D modelling/visualisation), and Estate Baron (crowdfunding) that it will work with in the coming months to fine tune their offers and secure investments.

The Lowys are backing technology in the next evolution of their retail vision. Steven Lowy will chair the retail tech business, OneMarket, when it is spun out and listed on the ASX, once Westfield completes its merger with Unibail-Rodamco.

According to Sir Frank Lowy:

“OneMarket’s strategy is to develop a retail network that seeks to help bricks and mortar retailers compete more effectively” by rapidly implementing “new technology at scale, to facilitate collaboration and to leverage a comprehensive set of consumer data to provide network participants with insights and intelligence.”

lt’s not surprising that investment in PropTech platforms has increased exponentially. Back in 2012, around $US220 million was invested into PropTech ventures. According to ReTech, a leading US-based PropTech research firm, more than $US12 billion was invested last year. And it is not just venture capital and private equity firms investing in PropTech. In 2017, the largest dedicated fund for investing in PropTech, Fifth Wall Ventures, raised $US212 million from some of the biggest property names in the US – CBRE, Hines, Prologis, and Equity Residential.

It’s time to get on board and view technology not as a disrupter but a good business opportunity.

 

Adrian Harrington is Head of Funds Management at Folkestone, a sponsor of Cuffelinks.

 


 

Leave a Comment:

RELATED ARTICLES

Listed property headlines disguise full story

A-REITS are looking at M&A activity again

Reporting season winners and losers in listed property trusts

banner

Most viewed in recent weeks

16 ASX stocks to buy and hold forever, updated

This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

2025-26 super thresholds – key changes and implications

The ABS recently released figures which are used to determine key superannuation rates and thresholds that will apply from 1 July 2025. This outlines the rates and thresholds that are changing and those that aren’t.  

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

What Warren Buffett isn’t saying speaks volumes

Warren Buffett's annual shareholder letter has been fixture for avid investors for decades. In his latest letter, Buffett is reticent on many key topics, but his actions rather than words are sending clear signals to investors.

Latest Updates

Investing

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

Investment strategies

A closer look at defensive assets for turbulent times

After the recent market slump, it's a good time to brush up on the defensive asset classes – what they are, why hold them, and how they can both deliver on your goals and increase the reliability of your desired outcomes.

Financial planning

Are lifetime income streams the answer or just the easy way out?

Lately, there's been a push by Government for lifetime income streams as a solution to retirement income challenges. We run the numbers on these products to see whether they deliver on what they promise.

Shares

Is it time to buy the Big Four banks?

The stellar run of the major ASX banks last year left many investors scratching their heads. After a recent share price pullback, has value emerged in these banks, or is it best to steer clear of them?

Investment strategies

The useful role that subordinated debt can play in your portfolio

If you’re struggling to replace the hybrid exposure in your portfolio, you’re not alone. Subordinated debt is an option, and here is a guide on what it is and how it can fit into your investment mix.

Shares

Europe is back and small caps there offer significant opportunities

Trump’s moves on tariffs, defence, and Ukraine, have awoken European Governments after a decade of lethargy. European small cap manager, Alantra Asset Management, says it could herald a new era for the continent.

Shares

Lessons from the rise and fall of founder-led companies

Founder-led companies often attract investors due to leaders' personal stakes and long-term vision. But founder presence alone does not guarantee success, and the challenge is to identify which ones will succeed in the long term.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.