Chinese real estate firms to increase proptech budget, bet on innovation to fight Covid-19, reduce costs: survey
- Some 55 per cent of mainland firms are likely to raise their proptech budget between 10 and 30 per cent, from just 10 per cent in the previous JLL study
- As more Chinese property companies allow greater collaboration, costs associated with building trust with technology firms will be lowered, says JLL executive
More than half of mainland Chinese property companies are likely to increase their budget for proptech by as much as 30 per cent in the next two years, reflecting their changing attitudes towards innovation amid greater risks brought on by the coronavirus pandemic, a survey has found.
A JLL survey of 230 proptech companies, real estate and professional organisations found that more than 55 per cent were likely to raise their allocations for proptech between 10 and 30 per cent, compared to 37 per cent of firms that planned to increase their budget by 10 per cent in the previous study in 2018.
The study found that a more open attitude is likely to lead to more collaboration, a departure from the previous approach of huge investments in acquisitions or in-house R&D that typically face high failure rates owing to limited technology, talent or capital resources.
As more Chinese property companies allow greater collaboration, costs associated with building trust with technology firms will be lowered, said Gavin Morgan, JLL’s chief operating officer for Greater China.
“Proptech can mitigate potential market risks and maximise long-term asset value with respect to four key areas: human experience, health and safety, operational excellence, and digital drive.”
The power of proptech has been further reaffirmed during the Covid-19 outbreak, encouraging more real estate firms to increase their investment in proptech, he added.
