Technology continues to catalyze change in all areas of business and industry, property businesses is one of the niches that is sure to be affected by technology, because digital disruptions are affecting industries and pushing organizations to change or die. The technology disruptive era gives a huge impact to the whole business system from the array of product that is relevant selling in this era, the platform to link potential customers to business owners, the way business finance themselves and others, to the most miniscule part of the business the disruptive technology also disrupts the strategy of marketing.
Discussing about the platform and contextualizing it to the property business, the scenario of property businesses in Indonesia is gradually showing a change from a relation-based type of businesses—a business that relies on the relation it’s consumer and owners have--to a more “anyone can invest-type of businesses”. The former scenario benefits to those with large array of links and relations yet is not friendly with a wider range of investors. Fortunately, one of the proofs of advancement in the digital world is the blooming of platforms that links consumers to business owners so now the transaction can become easier and property businesses would not be only the dream for specific type of investors but is widely open to anyone with capital to invest.
In the property sector, the term of portal property is now growing gradually and give ease to investors all around the globe to invest a large sum amount of their capital in the property of their designated country. These terms that is called portal property is what we state before as the online platform in property industry niches. The platform that links property owners to potential investors. There are many different types of property portals. Some focus exclusively on the real estate industry and others cover multiple services and industries in addition to real estate, while many have large models of products while others only package and sell leads. But the property platform is yet only one of the advancement that the digital age brought to the property businesses. Proving that the technology effect are a no-joke, venture investors deployed around $5 billion dollar on investing in property technology which is an increase for more than 150 times since 2010 in the number of $33 million invested. Trend of growth in the investment on the property technology is also positive in Indonesia as the survey conducted by The Urban Lan Institute ranked Indonesia as the third in Asia Pacific to be the most fertile for property investments.
To contrast the concept, let’s discuss about the earlier used concept in the property investment scheme. At the 1980s until early 1990s the term Multiple Listing Services were closely associated with property investing businesses. Initially, the concept was actually a group of brokers that gathers information on what each of them sells and compile it into one aggregated list of properties. These lists are then showed to the consumers, and the brokers that sold the properties that was not theirs to sell gets a compensation from the sales. In an overview, the concept might seem similar to the online property portal system, but in fact both are actually totally different. The Multiple Listing Services requires an exclusive-listing process which is the main business model. Brokers these day pay a monthly fee to get a Multiple Listing Services and is not included the advertisement fee. Both scheme does collect information of sales but there are difference from aggregating in the Multiple Listing Services and advertising in online portal system. Aggregation involves collection, collating, and maintaining the integrity of the information, while in the portal system as the sellers are owners themselves the process of collecting becomes much more effective and erased the function of brokers so then the term “for-sale-by-owners” was booming that there won’t be any necessities to hire a broker to sell their properties. The only fee that will be deducted in the online property portal system is the advertisement fee as the main business model of these portals are actually the advertising space.
In the beginning there was doubts that the portal system will be able to beat the Multiple Listing Services. As time flies and the technology and market demand shifts It is only a matter of time until the earlier system becomes irrelevant. Till this day the portal systems are proved to be standing above the earlier system.
As stated above that the technology era did not only disrupt the scenario of the business but also effects to the most effective marketing strategy to conduct for better results in the property investment. At the old times the most effective marketing tools was the radio commercial, television, billboards announcement and pamphlets advertisement. The technology disrupts the marketing strategy of property investment by introducing the concept of retargeting and social media marketing.
In the traditional sense of marketing, the fee to market certain commercials is high enough and couldn’t target specific market segment. So paying for television commercials is a no guarantee that people that are interested in the property investment would watch the commercial. On the other hand tech advancement allows any kind of specific niche business or investment to reach a specific market segment so that the conversion rate of ad viewers we’re incredibly high.
Indonesia is a country with an appealing turnover rate for property investment. The technology advancement, especially in Indonesia where online marketplace whether an e-commerce store to property portals are in the curve of ascending trend makes Indonesia a strategic country to invest in. If we see further prospects, the technology advancement would not only enhance business in the property business but also other businesses that is strongly related to property such as tourism. Looking at the great potential of tourism in Indonesia and looking at the data provided it is likely that in the upcoming years investment in property area will flood in Indonesia and further increase the benefit for investors and society.
Written by : Fajar Adi Nugroho