Risks and opportunities in embracing proptech

PETALING JAYA (June 17): Property technology, or proptech, has changed the way the real estate industry operates. While this disruption is generally welcomed as the way forward, there are still some concerns. So, what are the most common concerns among property developers in embracing proptech?

This was the question posed to the panellists in a discussion titled “Proptech Disruption and Adoption in Malaysia” at the Real Estate Digital Summit 2022 yesterday at Le Meridien Petaling Jaya Hotel. 

The panellists comprised EdgeProp Malaysia managing director Alvin Ong, Bnetworks Sdn Bhd CEO TS. Tharmaindran, NextProperty Ventures Sdn Bhd strategic partner Tan Aik Keong, Mhub co-founder Jason Ding and Speedbrick Sdn Bhd founder Teoh Pui Mun. 

The Real Estate and Housing Developers’ Association Malaysia (Rehda) acting president Datuk N K Tong served as moderator for the panel discussion. 

“The nature of proptech is such that its solutions are end to end. When you apply these solutions to the various functional silos across many real estate companies, it makes things more complicated. 

“You would need different stakeholders to agree to such solutions,” said EdgeProp’s Ong. 

Meanwhile, citing a research, he said the majority who used digital channels for the first time, will continue to do so, moving forward.

“People are willing to try new things as a result of the pandemic. This creates both risks and opportunities. For the latter, developers can hop onto them to push for a cultural change to facilitate new ways of working. 

“As for risks, trying new things have implications on brand quality. Your loyal customers are more open to new ideas now and this requires developers to differentiate the type of engagement as to maintain or increase brand loyalty,” Ong added. 

He noted that it is not a question of how much money is spent when it comes to digital adoption, but whether it is worth it. 

“It is important to distinguish whether it is a problem in search of a solution or a solution in search of a problem,” he said.

On the topic of non-fungible tokens (NFT) for property investment and its risks, Ong pointed out that it is crucial to distinguish between NFT that have utility and those which are purely collectibles. 

“For instance, utility-based tokens that promise a type of service that has no end-date or expiry – would the company that drops this utility-based NFT be able to fulfil what is essentially a perpetual commitment?” cautioned Ong.