For instance, data analytics will change how service providers and end users interact.
Singapore's real estate sector will be evolving amidst the city-state's unfolding vision of a Smart Nation, as remarked by Dr. Davin Wang from the National University of Singapore (NUS).
Speaking at the PropTech 2017 event by Singapore Real Estate Exchange, Wang said Singapore’s real estate industry must continue to evolve and will likely be forced to do so at an even faster pace due to disruptive technologies and digital innovations.
He noted that there are five future trends that would be impacting the real estate landscape. Wang said e-commerce and changing consumer habits render shopping malls obsolete.
"In response, Singapore malls are now focussing on using new technologies that can create richer customer experiences. Property managers use indoor positioning systems to track shoppers and offer relevant promotions in real time depending on the shop that they are near to within the mall," he explained.
The second trend is the utilisation of data analytics. Wang said big data and advanced analytics allows for richer insights into all types of transaction data.
"Data analytics is also changing how service providers and end users interact. For example, ongoing research collaboration between NUS and Orange Tee, a leading property brokerage, studies behavioural implications of customer ratings and reviews for property agents and its impact on improving customer experience and agent service quality," he said.
There is also a growing trend in terms of green and sustainable buildings. For instance, the Building Construction Authority (BCA) has championed environmentally friendly building solutions that focus on energy-efficient designs, technologies, and practices in buildings.
NUS, on the other hand, also embraced this trend with the launch of its Net-Zero Energy Building in the School of Design and Environment, a building that produces the energy it consumes.
Wang also cited crowdfunding as a major driver, saying real estate crowdfunding brings a greater variety of quality real estate assets with lower barriers of access.
“For example, with homegrown crowdfunding platform Fundplaces, investors can invest as little as $1,000 in a high-quality real estate mixed development project located in Australia, an example of a project that was previously available only to high net worth individuals or corporations before," he noted.
Lastly, Wang said that the most important trend that would be unfolding is towards education, where the next generation of real estate professionals must be prepared for the evolutionary challenges that technology will bring. "This includes ongoing training and executive education programmes that help current industry professionals reskill and reposition themselves in an evolving real estate industry," he concluded.
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