PropTech with Blockchain, Metaverse, & 3D
AZIT is a blockchain-based, point integration platform for real estate and residential services. AZIT provides a service that allows users to conveniently use points as they see fit for residential services related to real estate or community facilities by integrating points that can be used anywhere.
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Today, we will take a look at what changes have occurred in the PropTech field. We hope that you have a better understanding of what PropTech is if you’ve read our previous articles. If not, we recommend you go back and read those articles as PropTech is important now and will continue to be in the future. This field is dramatically expanding and attracting attention from many companies. Now, we will explain that change in more detail.
PropTech Startup Sales Surpassed KRW 1 Trillion
PropTech companies are growing rapidly in size every year. According to the Korean PropTech Forum, last year, domestic PropTech startups recorded KRW 1.9 trillion in sales, exceeding the KRW 1 trillion mark for the first time. This was a 42.4% increase from the KRW 702.6 billion generated in 2019.
The number of PropTech startups has also increased significantly. There were only 20 PropTech startups in 2018. That number increased to 130 in 2020 and to 170 in July of this year.
The field has also been remarkably diversified. There have been countless new startups that fall under the category of PropTech. Some examples include: marketing platforms (27) that help broker properties, shared services (38) that operate share houses and shared offices, and asset management solutions (30) that are optimized for non-face-to-face rentals and apartment management.
In addition, Data Valuation (21), which collects and evaluates real estate data using big data and AI has become more popular. VR/AR Solutions (19), which help people view properties without time and space constraints, are also rapidly growing.
The Evolution of PropTech
As the demand for non-face-to-face and online services increases due to the COVID-19 crisis, the PropTech industry is also growing rapidly. In addition to quantitative growth, the quality of service itself has improved with the introduction of advanced technologies such as artificial intelligence (AI), virtual reality (VR), augmented reality (AR), 3D design, and blockchain technology. In the past, PropTech startups merely announced listings or brokered real estate sales. However, now its fields are rapidly expanding to include online confirmation, electronic contracts, AI property recommendation and evaluation, and big data-based asset management.
First-generation PropTech startups such as Zigbang and Dabang are also busy introducing the latest technologies. Real estate platform Dabang recently announced the introduction of Dabang Sign, an electronic contract service using blockchain technology. It is a non-face-to-face, real estate contract service that can be used by lessees, lessors, and real estate agents so contracts can be signed without paper or a seal. When the landlord shares the property for sale in an electronic contract, the real estate agent transmits the property to the certified real estate agent’s app to advertise it. A user who sees the advertisement requests a contract for the desired property. Thanks to blockchain technology, there is no possibility of forgery or illegal alteration of contracts.
Besides Zigbang and Dabang, there are several other PropTech startups that are rapidly growing in size. Ziptos is a small residential real estate brokerage service, which recently surpassed KRW 1 trillion in accumulated transaction value. It received good reviews for lowering the risk of false sales by only brokering listings collected directly by its own authorized broker. The interior design comparison and quotation platform Zipdak is also rapidly growing in sales. Last year, their transaction amount increased by 50% compared to the previous year, recording KRW 150 billion, the highest performance since its establishment.
There are many startups that are attracting attention with services that have never been seen before. In particular, technology startups that use VR/AR to help with architectural design or online confirmations are attracting attention. A good example is Parallel Space, which provides VR/3D tours by measuring internal information. Additionally, Urban Base has the technology to automatically convert 2D architectural drawings into 3D renderings. Nearer Lab inspects large buildings with autonomous flying drones, and QPix manages construction sites from a distance with a 360-degree camera. All of these startups show the exciting future of PropTech. AZIT is excited to see what comes next!