Real Estate in Thailand is a business dominated by trends and fuelled by hype. Staying fresh and novel, isn’t a choice it’s a matter of survival, especially in ultra-competitive regional markets such as Bangkok!
Despite this, the Thai Property Industry has traditionally followed a predictable and conventional pattern:
“1. Developers develop new products.”
“2. Agencies are instructed to conduct marketing and sales activities.”
Interestingly, the adoption of technology industry-wide has remained surprisingly conservative up till now; with most of innovation being focused around extending exposure via marketing-platforms (I.e. Property Portals and Social Media Marketing) and more efficient construction techniques.
However intense inter-developer competition and growing hype surrounding tech, has put a spotlight on the potential business implications and opportunities of “Proptech”!
Launch of Siri Venture a JV between Sansiri and SCB. (Photo Source: Siri Venture)
Several high-profile developers are strategically supporting in-house startup ecosystems. This includes Siri Venture a corporate venture capital setup by Sansiri and Siam Commercial Bank. This venture was established with Baht 100 Million in registered capital and aims to invest alongside innovators and startups to develop new technologies.
Another notable player to join the fray is Ananda Development which has set up its own VC arm dubbed Ananda Urban Tech. The ambitious developer is also planning an “Ananda Campus” to try and support and accelerate the development cycles of startups it takes under its wing.
Proptech innovations have yet to radically revolutionize the Property Industry, however new technologies are gradually trickling down and incrementally improving standards!
Shifting media consumption habits from conventional avenues such as print and billboards to social media platforms such as Facebook have forced Developers and Agents to re-evaluate their marketing strategies. Top developers such as Origin, Sansiri and Ananda now run viral online media campaigns via mediums such as Facebook Ads, Property Portal Promotions and strategically targeted EDMs.
Some Developers have taken it a step further, combining the Facebook Live function with web-based booking system, to host online broadcasts of their launches!
All Inspire Live Booking Advert during the “City Strike Marketing Campaing”
Setting aside the sales and marketing aspects of Proptech, some established companies are making forays into property management and maintenance innovations. SC Asset is a notable example, with the setting-up of SC Able a subsidiary partly aimed at supporting its “Fixzy Application”. This innovative application will provide users with facilitated connection and access to a broad network of handymen, contractors and technicians.
Another trend where Proptech is making waves in Thailand is the growing adoption of the smart living concept. AP (Thai) is leading the way, officially partnering with Samsung to launch “AP Intelligent Living”. With a few of its developments notably Rhythm Sathorn and Baan Klang Muang CLASSE having integrated intelligent home systems that allow residents to regulate, monitor and control home appliances centrally.
While Proptech in Thailand is still in its infancy, the right ecosystem and support is in place to produce startups that could become tomorrow’s regional “Tech Unicorns”.
… Proptech is definitely a space to watch in the coming years!
