The View | How Asia can drive the technology revolution in property and construction
- Dorian Barak and Sam Chester say the major investment push in proptech in the West that’s transforming the real estate sector is finally flowing East
- Asia’s fast-growing and tech-friendly construction and property markets are ready for technology-inspired change
Advanced manufacturing and smart transport are two one-time traditional industries that have been transformed by technological advances, for which Asia has become the global hub. Real estate could be next. For the first time in over a century, the way we build, buy and manage property is changing in response to new technologies.
And while the “proptech” sector emerged in recent years in Western markets on the strength of new technology, the next chapter in the transformation of construction and property management is likely to take place in Asia – if it succeeds in leveraging cutting-edge technologies like artificial intelligence, robotics and advanced materials.
Proptech, or property technology, came to the fore as a major technology sector last year. Proptech companies raised US$12.6 billion last year, a 200 per cent increase from 2016. WeWork and Airbnb became two of the three most valuable start-ups in the United States. A dozen more proptech companies also passed the billion-dollar valuation threshold to achieve unicorn status.
And the investors behind these companies ranged from blue-chip funds like Goldman Sachs and the Ford Foundation to some of the world’s largest landlords and commercial brokers.
