In the last two years, both Silicon Valley venture capitalists and entrepreneurs, as well as traditional real estate developers and financial institutions, have been very popular with PropTech.
Editor’s note: This article is from investing in the network, author Chen Hao, editor Lin Kaihao.
In the last two years, the concept of PropTech – Real Estate Technology has been extremely popular in the United States. Both Silicon Valley venture capitalists and entrepreneurs, as well as traditional real estate developers and financial institutions, are very popular with PropTech.
Public data shows that during the five years from 2013 to 2017, the total investment in PropTech (real estate technology) sector showed an exponential growth. In 2017 alone, a total of 347 companies received $12.6 billion in financing.
And the world’s largest private equity technology investment fund – Softbank Vision Fund has set up a special real estate technology investment department. In three years, PropTech invested more than 15 billion US dollars, including the joint office WeWork, OYO hotel, There are a total of 7 companies including View.
PropTech is in full swing, so how does technology redefine the experience of the residential sector?
A decade of US real estate deleveraging cycle is a decade of rapid development of housing technology
The empty white founder Yang Xianling analyzed the above issues. He believes that how technology redefines the experience in the residential area is a common topic in front of all investors and researchers. There are three major backgrounds in foreign countries that are progressing very rapidly, and these three backgrounds also apply to China.
The first background is that the pressure on buyers is generally increasing. After the 2008 financial crisis, US financial consumption entered a deleveraging cycle, and the pressure to buy a house was growing. There are many opportunities in how to reduce the pressure on buying a house, reduce transaction costs, and reduce the time of trading. The past decade is actually a decade of the US real estate market deleveraging cycle, and a decade of rapid development of housing technology.
The second is the entry of capital. The liquidity in Europe and the United States is relatively loose, making low-cost funds enter the industry in a large amount, and almost all the world’s best investors are entering this field.
The third is the accelerated development of technology. Once a scientific variable is detonated into an industry, the industry will definitely have an impact, and real estate is in the last big match that technology is being changed by the depth of the Internet.
In Yang Xian’s view, real estate is always a golden age, and real estate is an industry that never ends. In the future, the whole real estate is still a very large category. In the next 5-10 years, real estate will always be the largest single product in China, and the new house is about 12-15 trillion.