Why property agents should embrace technology and use it to their advantage

“We’re entering the fourth industrial revolution,” said Guest-Of-Honour and Speaker of Parliament Mr Tan Chuan-Jin at the 2018 ERA Asia Pacific Business Conference. Elaborating on the Real Estate Industry Transformation Map (ITM), Mr Tan touched on the role of technology and what the government foresees as beneficial to the industry.

Addressing ERA property agents in the Asia Pacific region including the newly introduced country Cambodia, Mr Tan highlighted three thrusts of the ITM.

Firstly, the government’s focus is on making processes more effective with manageable costs. Because buying a house is the biggest transaction individuals make in their lifetime, he highlighted that property agents should focus on adding value to these processes though expertise, professionalism and competencies.

Even in the age where new portals facilitate direct transactions between property buyers and sellers, he maintained that purchasing property still requires a value judgement which only agents can provide—not AI—so nurturing trust in the industry remains important.

Thirdly, as technology revolutionises, Mr Tan explained that it is important for everyone to keep up with the times, where the government is open to working together to embrace these transformations in a sustainable manner. Since property agents are responsible for managing a space where individuals conduct large financial transactions, corporate social responsibility remains paramount. Some ways ERA plans to embark on this is by organising more free training programmes and public seminars to educate the general public about real estate knowledge.

Elaborating on the sustainability of the industry, 99.co spoke to CEO of ERA Singapore, Mr Jack Chua. “The investment horizon is one where home buyers and investors are 50-50. Investment is not speculation anymore and must take a long-term view. You have to look at rental as subsidy to the instalment, not in the old days where rental pays for the instalment. Now a days, the agent will talk to the customer first to analyse if they’re qualified to invest, before bringing them to the show flat.”

During the dialogue with ERA leaders, Mr Tan remarked on the rising land prices and the role of technology in the industry. He emphasised that the Singapore government’s role is not to interfere with the market. Instead, the government strives to strike a balance and will keep a close eye on the present situation. He mentioned that any cooling measure would only be introduced in prudence with careful planning, for the government’s main priority is to provide affordable housing for all, no matter the income.

Addressing concerns on structural changes in the industry, Mr Tan acknowledged that technology will present both opportunities and challenges for property agents. “The industry needs to work with government bodies like MND and CEA. How do you play a part in managing technology? With these tools, you have access to more information, more capabilities…this is where the industry can evolve. Judgement and financial planning is not easy for AI to provide, and this is where all of you have a role. Embrace the change and run with it.”