Since 2013, China and Hong Kong have earned the lion's share of global PropTech investments.

Property technology - or PropTech - start-ups in Asia Pacific are outpacing their peers in Europe and the United States, according to new research from JLL, with 179 of them raising about $4.8 billion in funding since 2013. This accounts for more than 60% of global PropTech spending. doha sale

Greater China, which includes the mainland and Hong Kong, has gained the most funding in Asia Pacific, accounting for nearly 41% of global 'PropTech' spending.

The results of the real estate consultant's study, Clicks and Mortar: The Growing Influence of PropTech, were published today. The report examines the state of PropTech and its growth potential in 13 markets across Asia Pacific. JLL commissioned the report, which was written by members of the start-up group. The study also includes a prediction for PropTech development in Asia, with funding expected to hit $4.5 billion per year by 2020.

PropTech is a term that combines the terms property and technology to describe the use of technology to solve problems in the real estate industry.

"Real estate and technology are merging in exciting ways. Data analytics, artificial intelligence, the Internet of Things, augmented reality, and blockchain are already having an effect on how we invest in and occupy real estate in the future "Anthony Couse, CEO of JLL Asia Pacific, agrees.

"The results of the study indicate that Asia Pacific has a lot of potential for PropTech. All of the conditions are in place for this new sector to accelerate, offering improved efficiencies and better experiences for end-users, thanks to its young population, rapid urbanization, and'mobile first' mentality."


PropTech behemoths from Asia

Based on funding value and total number of transactions, Greater China and India emerged as the region's top two markets for PropTech start-ups, according to the survey. Greater China raised the most money, with $3.02 billion raised from 34 transactions, accounting for over 60% of the total funding raised in Asia Pacific. India has the most PropTech start-ups in Asia Pacific, with 77 deals totaling $928 million.

JLL's associate director of Asia Pacific Research, Christopher Clausen, said, "The high cost of living in Hong Kong, as well as the city's past as a conventional financial center, have stifled innovation and the growth of the tech industry. The city's tech industry, on the other hand, is rapidly gaining traction, and a growing number of unicorns have their roots in Hong Kong. The Hong Kong Government's recent launch of the HKD2 billion Innovation and Technology Venture Fund should help the tech sector, including PropTech, expand even further."

"The government can also help the tech sector, like PropTech, grow by providing tax breaks and business incubators to qualified companies. However, whether Hong Kong's tech industry continues to expand will eventually be determined by market forces. Work visas for expatriates with in-demand tech skills in Hong Kong will also help the industry expand "Clausen continued.


Evolution of PropTech

PropTech in Asia Pacific has progressed dramatically since its inception in 2007 with residential property listing start-ups, according to the survey. It is now starting to serve broader business needs as well as the commercial real estate market in its new version.

Brokerage and leasing, investment and financing, project development, and property management are the four key verticals or niches served by PropTech startups, according to the study. More than half of the start-ups that have raised money since 2013 have been in the brokerage and leasing space, where they act as a marketplace for brokers, property owners, and buyers.

Mr. Couse says, "What's really important for a business like JLL is that more start-ups are starting to emerge that offer flexible solutions for big corporate needs." "As we see the application of technologies like 3D printing, robotics, and drones alongside the rise of Smart Cities in Asia, the real estate industry may undergo a transformation."


PropTech 'unicorns' in Asia

Based on a specially built matrix measuring JLL's Total Investable Real Estate Universe and the World Economic Forum's Networked Readiness Index, Tech in Asia predicts that China and Japan have the greatest potential for cultivating unicorns - or billion-dollar start-ups - in Asia Pacific.

"China already has PropTech unicorns, as we've found. Lianjia, for example, raised $1.69 billion for its tech-enabled brokerage firm. There are likely to be more in China, given the country's enthusiastic adoption of FinTech and mobile payments. But, because of its eagerness to embrace blockchain, we believe Japan is ripe for a billion-dollar startup "Terence Lee, the chief editor of Tech in Asia, agrees.

"While many of the start-ups we track are in areas like e-commerce and gaming, we believe PropTech will be one of the most important sectors to watch in the next three to five years."

Go Back


Blog Search


There are currently no blog comments.