How Singapore’s Property Sector Could Be Disrupted
Traditional industries are facing disruption, and the property sector could be next.
Singapore’s stock market is home to several large real estate companies. The incumbents range from real estate developers like CapitaLand Limited (SGX: C31), and City Developments Limited (SGX: C09) to logistics property provider Global Logistic Properties Ltd (SGX: MC0).
A Business Times report said that real estate tech platform disruptproperty.com had listed 33 property technology companies – termed “proptech” – which are using technology to improve traditional property services. Among the areas that proptech is looking at are crowdfunding, property search, video analytics and so forth.
In essence, the disruptors are looking to solve existing problems by leveraging the use to technology. As investors, we could learn from this disruptive approach.
1. Simplifying onerous processes – click here
2. Opaque market prices
Buying and selling a home is a major transaction for any individual. However, finding information on historical housing prices is not so easy.
The Singapore Real Estate Exchange (SRX), managed by StreetSine Technology Group, was formed in 2011 by 11 real estate agencies. StreetSine Technology is a subsidiary of Singapore Press Holdings Limited (SGX: T39). SRX provides prices of recently sold properties which brings transparency. Disruptproperty.com also lists companies such as noagentresidential.com.sg as an online site to search for properties to rent, buy or sell.
In my view, the opaque nature of prices is a pain point. Disruptors might attempt to lift the veil and provide better transparency.
Therein lies another lesson.
Can you think of industries that have opaque pricing information? Is there are strong desire for more transparency? Are these purchases decisions significant to the common individual?
In my opinion, these are pain points that are waiting to be solved. If we are able to identify these pain points, we might have found the next area that could be ripe for disruption.