Innovation in the Inventory Era – Digital Transformation of the Real Estate Industry in the Greater Bay Area
GBA Prop-tech White Paper: September 2022
Prop-tech has become the main driving force for the latest real estate industry revolution and enterprise transformation. It has garnered significant interest as the real estate industry enters the era of inventory management. Under the dual pressures of China’s tightening housing policy and rising operation costs, real estate enterprises must break new ground for growth, entailing new approaches in management and operation. Meanwhile, demands from epidemic control, remote work and the overall trends in data integration have catalyzed the rapid growth of prop-tech. This “new normal” has given the impetus for enterprises to undergo digital transformation. The Greater Bay Area (“GBA”) comprises the core cities including Hong Kong, Shenzhen and Guangzhou. It is one of the most developed areas in China, with established experience in leveraging development of the real estate industry to boost domestic demand. Rapid development of the real estate industry has resulted in large inventory, as such, management of existing inventory has become an industry-wide concern.
The GBA is envisioned to drive technology and innovation. Where new ideas emerge and technology develops, the GBA presents tremendous potential for the real estate sector with the increasing applicability of artificial intelligence (AI), Internet of Things (IoT), blockchain and other emerging technologies. However, many enterprises have not fully grasped the potential and value of prop-tech. We present this white paper with the aim to explore how GBA enterprises may focus on prop-tech innovation and digital transformation as a practical means to respond to the challenges and opportunities of the day. The Urban Land Institute (“ULI”) and Ernst & Young Transactions Ltd. (“EY GBA”) have co-developed this white paper based on the feedback of 98 companies from our survey and interactive workshops. In addition, we have conducted 21 one-on-one interviews with company executives. The following content highlights the research outcome. Research cover: GBA-specific real estate policy environment, market characteristics and trends Formulate prop-tech applications landscape Study how key real estate participants view, utilize and anticipate the changes brought about by real estate technologies Introduce GBA market opportunities to the industrial players in other areas.
Report Summary: Prop-tech has become the main driving force for the latest real estate industry revolution and enterprise transformation. It has garnered significant interest as the real estate industry enters the era of inventory management. Under the dual pressures of China’s tightening housing policy and rising operation costs, real estate enterprises must break new ground for growth, entailing new approaches in management and operation. Meanwhile, demands from epidemic control, remote work and the overall trends in data integration have catalyzed the rapid growth of prop-tech. This “new normal” has given the impetus for enterprises to undergo digital transformation. The Greater Bay Area (“GBA”) comprises the core cities including Hong Kong, Shenzhen and Guangzhou. It is one of the most developed areas in China, with established experience in leveraging development of the real estate industry to boost domestic demand. Rapid development of the real estate industry has resulted in large inventory, as such, management of existing inventory has become an industry-wide concern.
The GBA is envisioned to drive technology and innovation. Where new ideas emerge and technology develops, the GBA presents tremendous potential for the real estate sector with the increasing applicability of artificial intelligence (AI), Internet of Things (IoT), blockchain and other emerging technologies. However, many enterprises have not fully grasped the potential and value of prop-tech. We present this white paper with the aim to explore how GBA enterprises may focus on prop-tech innovation and digital transformation as a practical means to respond to the challenges and opportunities of the day. The Urban Land Institute (“ULI”) and Ernst & Young Transactions Ltd. (“EY GBA”) have co-developed this white paper based on the feedback of 98 companies from our survey and interactive workshops. In addition, we have conducted 21 one-on-one interviews with company executives. The following content highlights the research outcome. Research cover: GBA-specific real estate policy environment, market characteristics and trends Formulate prop-tech applications landscape Study how key real estate participants view, utilize and anticipate the changes brought about by real estate technologies Introduce GBA market opportunities to the industrial players in other areas.