All Aboard The Australian Proptech Train
While Australia’s Proptech industry isn’t quite at the same level, the market is evolving rapidly and is already changing the way many companies and even other industries do business.
The Proptech industry has seen incredible growth in overseas markets over the last couple of years – particularly in the US & UK. While Australia’s Proptech industry isn’t quite at the same level, the market is evolving rapidly and is already changing the way many companies and even other industries do business.
First thing first: What is Proptech?
Proptech is one small part of the wider digital transformation of the property industry. It describes a movement driving a mentality change within the real estate industry and its consumers regarding technology-driven innovation in the data assembly, transacting and design of buildings and cities.
- Andrew Baum and James Dearsley, 2017
From real estate agents using innovative new technologies when market their listings, to artificial intelligence crunching massive data sets to guide commercial developers towards their most profitable development configurations, the industry is vast. And it’s growing.
Investment capital into the global Proptech industry is set to reach $20 billion in 2020 as venture capitalists and traditional players in the real estate game seek to take full advantage of the next big thing. The Australian Proptech industry has seen a huge push as giants of the residential and commercial development, real estate and finance industries look to innovation and new technology to improve their current business practices and pad out their bottom line.
However, more and more Proptech startups are starting to make a name for themselves in an increasingly crowded industry. Deloitte attributes the rise in startups to rapid advancements in technology and lower barriers to entry:
Over the past 15 years, the cost of establishing an internet-based startup has plummeted from $3 million in the 1990s to just $300 today, causing them to become more synonymous with disruption and innovation.
One such South Australian Proptech vendor is starting to make some serious waves with their Australian market-first products that offer significant value for a huge range of industries and organisations.
PointData is the brainchild of Founder & Chief Executive Officer George Giannakodakis. Drawing on more than 25 years’ experience in the engineering, planning and development industries, George and the growing team at PointData developed a range of artificial intelligence powered products with some serious abilities.
PointData’s Automated Valuation Model (AVM) product, Valeri, offers a revolutionary new way to value property. Drawing on an incredible range of data sources, Valeri quantifies locational, property and market attributes to forecast and value property and land sales like never before. And it does it fast.
A tool like Valeri offers significant advantages to any company or industry that deals with property values, including but not limited to:
- Real Estate Professionals
- Lenders & Financial Advisors
- Investors & Super funds
- Local & State Governments
- Developers & Builders
Organisations that operate in these industries are constantly looking for ways to cut operating costs, speed up business processes and boost profit. Valeri provides a powerful arrow in the quiver of any business that deals with property values, by:
- Reducing Overheads
Valeri provides instant AVM data which in turn speeds up vital but traditionally time-consuming business processes like property valuations and market analysis. Market-first, AI powered algorithms process enormous amounts of data, freeing up labour hours for other business pursuits.
- Providing Superior Accuracy
Valeri analyses a massive amount of data from a wide variety of sources, ranging from broad level market, suburb and comparable sales data to hyper focused property data, neighbourhood analysis and even proximity to amenities.
Valeri learns patterns and identifies trends to provide superior property value data and it does so with incredible accuracy. Blind testing, back casting models and the use of advanced error metrics provide the highest level of accuracy and confidence.
- Minimising Risk
Valeri’s Automated Valuation Model provides tailored risk management when businesses require due diligence and lending risk management analysis. Valeri can even uncover over-valuation and risk collateral that may have been previously overlooked.
- Unearthing New opportunities
Valeri is an AI platform and is always analysing new data, identifying emerging patterns and trends and learning everything it can about the property market. Valeri’s unique property metrics and tools can identify new opportunities and maximise residential portfolio property values.
AI Proptech platforms like PointData’s Valeri are changing the way entire industries do business. They can cut the cost of time delay of regular business processes, provide unmatched data accuracy and most importantly, boost the bottom line.
PointData recently inked a deal with Land Services SA, meaning PointData’s market first Proptech solutions will be accessible to South Australian consumers through real estate agents and conveyancers via the office’s South Australian Integrated Land Information System (SAILIS). The deal will provide unmatched intelligence, insight and property value data to banks, real estate agents, conveyancers, homeowners, property investors and developers.
Proptech has been around for a while now but it has absolutely exploded around the world in the last couple of years. Whether it’s the goliaths of commercial real estate, local real estate professionals or even amateur real estate investors, everyone is getting aboard the Proptech train - don't miss out on your ticket to ride!