DX speed has skyrocketed over the past year due to the COVID-19 pandemic compared to the previous survey conducted in June 2020.
TOKYO, Jul 27, 2021 / PRNewswire / – The results of the survey were released by GA Technologies Co., Ltd. (Headquarters: Minato City, Tokyo; GENERAL DIRECTOR: Ryo Higuchi; Securities code: 3491; Company) on Friday, July 16, about how the real estate industry is taking on a wave of digital transformation. The speed of digital transformation (“DX”) has skyrocketed over the past year due to the COVID-19 pandemic compared to the previous survey conducted in June 2020 （1). In this article, we will focus on analyzing how real estate companies are grappling with this DX movement that is taking place in the industry.
The survey was conducted by ITANDI, Inc., a member of the GA group, among 6 other companies and 1 organization doing business in the PropTech industry. ITANDI’s mission is to make the process of real estate transactions easier and more convenient by introducing technologies into all processes.
ITANDI, Inc. (headquarters in Minato, Tokyo/ GENERAL DIRECTOR: Shinpei Noguchi)
UPDATA CO., Ltd. (headquartered in Shibuya, Tokyo/ GENERAL DIRECTOR: Masanobu Okamura)
WealthPark Co., Ltd. (headquarters in Minato, Tokyo/ GENERAL DIRECTOR: Ryuta Kawada)
Servithink Co., Ltd. (Headquarters in Shinjuku, Tokyo/ GENERAL DIRECTOR: Shinji Namura)
Spacely, Inc. (headquartered in Shibuya, Tokyo/ GENERAL DIRECTOR: Hiro Morita)
Linough Inc. (headquartered in Bunkyo, Tokyo/ GENERAL DIRECTOR: Kiyoshi Takizawa)
LEEWAYS Inc. (headquartered in Shibuya, Tokyo/ GENERAL DIRECTOR: Shigenori Makiguchi)
Real Estate Technology Association for Japan (Headquarters in Minato, Tokyo / Representatives: Masayuki Akagi, Shigenori Makiguchi)
Summary of the results of how the real estate industry is grappling with the idea of digital transformation
“Is your company making progress on the DX aspect?” More than 90% of companies answered “Yes”: which is more than 90% and this is 1.5 times compared to last year.
“For what purpose are you making this transformation?” – about 85% answered: “To improve business efficiency”.
Most companies commented that “it is difficult to hire professionals with adequate DX skills and knowledge” when it comes to obstacles to the DX process. It also shows that the lack of people with the proper DX knowledge and skills is a constant problem for most companies.
Regarding the annual budget willing to spend on the DX aspect, more than 50% answered “more than 1,000,000 yen“, and 18% answered” more than 10,000,000 yen“in which we see significant progress made by entrepreneurs.
We are seeing growing interest in installing an electronic filing system and we are confident that the installation speed will gradually increase.
Since the outbreak of the COVID-19 pandemic, the frequency of installation of tools to support remote work has increased significantly, including “online meeting system”, “application for real estate owners / portal service”, “electronic application system”, “electronic contract system” “. and “VR / Online Tour System”. More than 83% of the companies answered: “Want to install an electronic system for filing applications / contracts.” 30% answered that “preparations are underway”; however, 20% of companies “are interested in this option, but not sure how to proceed and which system to choose.
Why are real estate companies starting to go digital?
When it comes to incorporating technology into a business process, over 90% of companies said they are using some form of DX compared to a previous survey of 60%. This time, in the short term of 1 year, the increase from the result is 1.5 times. With regard to this transition, over 85% indicated that improvements in overall labor efficiency were the main reason for this change.
Things Companies Face in Transformation
When it comes to the obstacles to this transition, “it’s hard to find the right person with the right DX skills and professional knowledge.” tops the list, followed by “budget shortage”. In the previous survey, we could also find in 60% of companies such reasons as “lack of knowledge and skills, know-how necessary for this transformation”, “It is difficult to hire and maintain such human resources”, “It is difficult to find such a person with the appropriate skills, to lead the team and take the lead in transformation. ” From this result, we can see that “Lack of appropriate human resources with adequate DX knowledge and skills” continues to be a major issue for most companies looking to make the transition.
Annual budget to spend on digital transformation
About how much the company is willing to spend annually to create this DX, 67% answered: “More 500,000 yen“and then” More 1,000,000 yen“, which accounts for more than 50% of companies’ responses. There are even 18% of companies that are willing to spend” More than 10,000,000 yen“make such a shift.
Actual Installation Progress of Assessment Tools / Customer Satisfaction
“Systems, Tools for Web Meetings” ranks first in terms of both installation speed and customer satisfaction. “Real Estate Infrastructure System” and “Property Data Management System” are also popular systems when it comes to actual installation, followed by “VR / Online Home Tour System”, “Communication Tools”, “CRM System”. These systems are also receiving high install rates due to the growing demand for telecommuting and online meetings in the industry. In addition, the demand for “Electronic Bid / Contract Systems” is also growing and we appreciate the increase in the number of installations in this category since now. On the other hand, industry-exclusive services such as Online Documentation (Critical Issues), AI Real Estate Pricing System, received over 50% of customer satisfaction from our real estate survey.
Advances in industry DX installation speed before and after COVID-19 pedantic
Online Meeting System and Real Estate App / Information / Portal Site have the highest needs since the outbreak of the COVID-19 pandemic, followed by Electronic Claim System, Electronic Contract System. We can see that tools that can cope with the remote working style are the most popular due to the global pandemic.
Readiness to install an electronic contract system
According to the survey, 83% of companies are ready to switch to an electronic contract system, which clearly shows that the demand for an online system is growing. 30% of companies are already making this transition. However, there are another 20% who are not sure which system to choose.
A year has passed since the start of the COVID-19 pandemic. The DX movement in the industry is evolving faster than ever as people’s understanding of DX is also changing dramatically. We expect that along with the change in working style and amendments to the related rules, this transformation will move even faster. While we’re excited to see some of the positive changes this DX can bring to the world, we’re also finding that the industry is facing a number of hurdles that prevent companies from taking further aggressive steps. The companies and organizations that conducted this survey are real estate professionals and are willing to contribute to this process that takes place at DX.
Research time: June 3, 2021 – June 25
Number of responses received: 219 companies / 237 people
Collection method: online survey
GENERAL DIRECTOR: Shinpei Noguchi
Office: 40F, Big Tower Mitsuisumitomo Roppongi, Roppongi 3-2-1, Minato, Tokyo
Established: June 2012
Capital: 36,000,000 yen
Development and operation of software services BtoB: ITANDI BB
Development and operation of DX services in real estate: ITANDI BB +
Development and operation of a hunting platform for a self-guided tour: OHEYAGO
About GA technologies
GA Technologies Co., Ltd.
GENERAL DIRECTOR: Ryo Higuchi
Office: 40F, Big Tower Mitsuisumitomo Roppongi, Roppongi 3-2-1, Minato, Tokyo
Established: March 2013
Capital: 72,859.9831 yen (As of June 30, 2021)
PropTech Real Estate Services Platform: RENOSY (Media Portal, Real Estate Agent Services, Real Estate Operations, Renovation Services, Real Estate Management)
SaaS type of product development BtoB PropTech
AI-powered data exploration and analysis
Overseas property platform service is focused on Greater China area: Shenjumiasuan, PropTech overseas business
Major group of companies: ITANDI, Inc, Modern Standard Co, Ltd., Shenjumiausuan Co., Ltd and 8 other companies.
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SOURCE GA Technologies Co., Ltd.