Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 253

Property and why PropTech is the future

The current pace of technological change is unprecedented. Whole industries are being transformed or disrupted as businesses look to do things smarter, cheaper, and quicker.

The property industry is not immune to this change. The convergence of property and technology, coined ‘PropTech’ is about leveraging new technology into the property ecosystem to create entirely new transaction, delivery, management, and service models for property businesses, their customers, and the built environment.

Two years ago, no one was really talking about PropTech. Maybe the physical nature of property gave us insiders some comfort that the disruption that was creating havoc in sectors such as financial services would not affect our industry. But now, inspired by the success of two of the most successful start-ups in history, Airbnb and WeWork, PropTech is front and centre.

The impact of technology on real estate

Big data (data analytics), the internet of things (connected devices), cloud computing, artificial intelligence, virtual reality, Blockchain, drones, 3D printing, and robotics are just some of the innovations reshaping the property landscape. Their influence is permeating just about every touchpoint in the industry from listing and search services to marketing, transacting, conveyancing, property and facilities management, leasing, space utilisation, customer engagement, urban planning, design, construction, valuation, lending, payment services, and research.

It is not just the technological innovation in our sector that is forcing change. The tenants of our buildings and the users of the urban environments we create are also being affected. As a result, their demands and expectations of our buildings and cities are also changing. Connectivity, mobility, flexibility, and wellbeing are now part of their lexicon.

KPMG’s inaugural Global PropTech Survey, released in November last year, found that 92% of respondents representing property owners, investors, managers, financiers, advisers, and agents believe that digital/technological innovation will have a significant impact on their business. Surprisingly, 86% saw it as an opportunity. However, there’s a wide gap between acknowledgment and adoption. Just over half gave themselves a rating of five or less (out of 10) in relation to their digital/technological innovation. They know that technology is critical, and offers a business opportunity, but they have yet to develop and implement a digital strategy to help their business remain competitive.

Partnering and recruitments

The recent announcement by Stockland that Robyn Elliot was moving across from Fairfax Media to a newly created position of Chief Technology and Innovation Officer and Scentre’s (ASX:SCG) announcement late last year that Cynthia Whelan had been lured from Telstra to be Chief Strategy and Business Development Officer sends a strong message to the industry that technology is changing things in ways that many of our largest property owners and managers could not have imagined a few years ago.

In announcing Elliot’s appointment, Stockland’s chief executive, Mark Steinert, pointed out that it would create “the opportunity to capitalise on the synergies between innovation and technology … and further enhance our ability to progress commercial outcomes from innovation projects.”

Yet it is not just about bringing smart tech people inside the business. Some of the industry’s largest incumbents are establishing incubator programs to partner with start-ups.

JLL (NYSE:JLL) has established Spark, an independent unit to “ensure that JLL and its clients benefit from technology-driven transformation by building a team that will create new products, make strategic investments and incubate PropTech start-ups.”

Charter Hall recently announced a property start-up accelerator program in collaboration with Collective Campus, an innovation hub and start-up accelerator consultancy firm. The program has identified four start-ups – lnSpaceXR (virtual reality), BricksandAgent.com (cloud-based property management platform), Snaploader (3D modelling/visualisation), and Estate Baron (crowdfunding) that it will work with in the coming months to fine tune their offers and secure investments.

The Lowys are backing technology in the next evolution of their retail vision. Steven Lowy will chair the retail tech business, OneMarket, when it is spun out and listed on the ASX, once Westfield completes its merger with Unibail-Rodamco.

According to Sir Frank Lowy:

“OneMarket’s strategy is to develop a retail network that seeks to help bricks and mortar retailers compete more effectively” by rapidly implementing “new technology at scale, to facilitate collaboration and to leverage a comprehensive set of consumer data to provide network participants with insights and intelligence.”

lt’s not surprising that investment in PropTech platforms has increased exponentially. Back in 2012, around $US220 million was invested into PropTech ventures. According to ReTech, a leading US-based PropTech research firm, more than $US12 billion was invested last year. And it is not just venture capital and private equity firms investing in PropTech. In 2017, the largest dedicated fund for investing in PropTech, Fifth Wall Ventures, raised $US212 million from some of the biggest property names in the US – CBRE, Hines, Prologis, and Equity Residential.

It’s time to get on board and view technology not as a disrupter but a good business opportunity.

 

Adrian Harrington is Head of Funds Management at Folkestone, a sponsor of Cuffelinks.

 


 

Leave a Comment:

RELATED ARTICLES

Listed property headlines disguise full story

A-REITS are looking at M&A activity again

Reporting season winners and losers in listed property trusts

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

With markets near record highs, here's what you should do with your portfolio

Markets have weathered geopolitical turmoil, hitting near record highs. Investors face tough decisions on valuations, asset concentration, and strategic portfolio rebalancing for risk control and future returns.

Latest Updates

Retirement

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

Shares

Boom, bubble or alarm?

After a stellar 2025 to date for equities, warning signs - from speculative froth to stretched valuations - suggest the market’s calm may be masking deeper fragilities. Strategic rebalancing feels increasingly timely.

Property

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Economy

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Shares

Is the iPhone nearing its Blackberry moment?

Blackberry clung on to the superiority of keyboards at the beginning of the touchscreen era and paid the ultimate price. Could the rise of agentic AI and a new generation of hardware do something similar to Apple?

Fixed interest

Things may finally be turning for the bond market

The bond market is quietly regaining strength. As rate cuts loom and economic growth moderates, high-quality credit and global fixed income present renewed opportunities for investors seeking income and stability. 

Shares

The wisdom of buying absurdly expensive stocks (or not!)

Companies trading at over 10x revenue now account for over 20% of the MSCI World index, levels not seen since the dotcom bubble. Can these shares create lasting value, or are they destined to unravel?

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.