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Hannah Jeong
Hannah Jeong

Concrete Analysis | Virtual real estate to have profound consequences for real world property. Here’s how

  • The idea of owning virtual property is enticing for a generation of prospective buyers raised on Minecraft and cryptocurrency
  • Hong Kong property tycoon Adrian Cheng Chi-kong and alternative investing firm Sun Hung Kai and Company have been snapping up virtual land

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So far, platforms are limited to gaming companies and others such as Sandbox, but it will not be long before this is a heavily populated sector. Photo: Handout
Hannah Jeong

Virtual real estate is a game-changer, and is likely to have profound and lasting consequences for the tangible property market. It has the hallmarks of an evolutionary step in property ownership.

No longer the sole purview of gamers and cryptocurrency entrepreneurs, the idea of owning a piece of virtual property is enticing, not only for speculative investment but for a generation of prospective buyers raised on Minecraft and cryptocurrency.

Over the last few months, the volume of transactions for commercial real estate in XR (extended reality) has ramped up. These digital landscapes will grow into a fully functioning economy in a few short years and offer a synchronous digital experience integrated into our lives as social media is today. They will allow people to find friends, participate in events, and do things they typically do in real life, but in a mirror world that enables them to create an alternative existence.

It must be stressed that at this point, no one knows the limitations, weaknesses and dangers investors really face in getting into XR. Due diligence is paramount before becoming involved in the multitude of possibilities. So far, platforms are limited to gaming companies and others such as Sandbox, Decentraland, Sommium Space, Upland and SuperWorld. But we can foresee that it will not be long before this is a heavily populated sector.
Adrian Cheng Chi-kong, the CEO and executive vice-chairman of New World Development. Photo: Handout
Adrian Cheng Chi-kong, the CEO and executive vice-chairman of New World Development. Photo: Handout

Prices are currently volatile as the worlds seek to balance their overall economies. And currently, the separate worlds are not open to each other, meaning if you choose to go with Sandbox, you stay in Sandbox.

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