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Last Updated on July 6, 2022 by Lamudi
The pandemic has completely changed the way services are delivered and consumed, as physical constraints accelerated a shift online. Companies were challenged to innovate and digitally transform their businesses to cater to an increasingly virtual market.
E-commerce stores, same-day logistics services, and online banking solutions have permeated households and have paved the way for more consumers to be open to using new technology. In many ways, consumers who were hesitant about transacting online needed to adapt, and the widespread use of digital platforms eased concerns about non-traditional ways of carrying out important tasks. As a result, all kinds of online services emerged – one of them being property technology, or PropTech.
“PropTech is using data and technology when it comes to improving the operations and customer experience in the real estate sector,” said Pamela Belen, the president and co-founder of PropTech company Kamada by Umpisa, during Lamudi’s event held virtually last April 30th.
In Real Estate Simplified: Solving Buyer Pain Points with Technology, Lamudi sat down with two of the country’s pioneering proponents of PropTech – Kamada by Umpisa and Nook – in a virtual roundtable. The discussion centered on the importance of digital integration in the real estate sector and was held in partnership with the Subdivision and Housing Developers Association, Inc. (SHDA).
Customer experience driving business models
As the country’s PropTech industry is relatively new, different companies have focused on meeting the needs of real estate seekers and professionals in different stages of the buying process.
For Belen, property management and improving the after-sales customer experience (CX) are some end-user benefits that real estate players should focus on fulfilling. Kamada by Umpisa, an online property management platform, offers digital real estate solutions including online bills payments, property documents management, maintenance request tracking systems, and automated messaging for unit owners.
“Foreign and local buyers and investors work so hard to buy these properties for their home or for investment… we want to improve the customer experience after paying for it, enjoying it, and maintaining and keeping their property,” said Belen.
On the other hand, Nook is more focused on the real estate buyer’s experience at the start of their home-buying journey. It is the country’s first online mortgage brokerage service, and aims to help simplify the loan search and application process. “We use technology to make sure the home loan experience of property buyers is smooth, easy, fast, and simple… PropTech improves the real estate experience in general in order for [buyers] to have a good service from end-to-end,” said Nook’s Director-Head of Partnerships and Sales & Business Development, Arvin Abreu.
Whole-of-industry approach to growth
One significant hindrance to growth discussed by the panel was the lack of education and awareness of PropTech among industry players and the Filipino market at large. Adoption of digital technology in the real estate sector is still in its early days, and although digital tools are available, the panelists discussed how important it was for companies to promote each other and help the market understand how the usage of digital technology can improve services and transactions in real estate.
“Having these kinds of sessions is really helpful, and [it’s important that we] promote each and everyone in the PropTech industry to work together and push each other so that we will advance,” said Belen.
The PH: A potential leader in the PropTech space
The country’s internet bandwidth is another major roadblock that the PropTech industry and local businesses in general face today. As of October 2020, the Philippines is ranked towards the bottom in terms of mobile internet speed as it placed 34th out of 50 Asian countries in the Speedtest Global Index. Singapore ranked first.
During the roundtable, Abreu cited Singapore as the leader in terms of adoption and usage of technology in real estate among the Philippines’ neighboring companies. He attributed this to the strong cooperation between the private and public sectors in improving the use of tech and data across not only real estate but all industries.
However, there is much optimism for the country’s PropTech industry, with the arrival of a third telco player in the market. Belen emphasized that the real estate industry in the Philippines and South East Asia is still in its very early stages for digital transformation.
“We are just starting out. We want to be the country that [other countries] are looking up to and recommending,” added Belen.
Harnessing the power of digital platforms, Lamudi will open its first and biggest online housing fair on May 3 until the 31st, featuring special deals from some of the Philippines’ trusted real estate companies. Join the online housing fair at lamudi.com.ph/housingfair.
Sources: ABS-CBN
