RTC: Facing Digital Disruption in Property Sector
Countries in Southeast Asia (SEA) Region, with the exception of Singapore, are often regarded as underdeveloped countries. Meaning that for the majority of the people who live in this region. They are in poverty, lagging behind in the agricultural sector, slow on industrialization, and face many other stereotypes that are imprinted upon them. These misconceptions and myths might be true if we are talking about SEA a couple of decades ago.
However, most of the countries in SEA has risen much and some can even boost their economic growth rate by up to 6%, like Laos and Vietnam. Although there are some discords in this region that can slow down its development. Such as claims over the South China Sea, a widely diverse cultural background, or intense political turmoil. They are still not enough to stop SEA from flourishing splendidly.
According to the World Bank, Indonesia’s GDP reached up to 5.2% and can even strike up to 5.8% next year, increasing the number of middle and middle-upper-class residents in this country. Not to mention that there will be many first time home buyers if we deduce it according to the demographic composition of this country.
Why is Indonesia a Hot Ground for Property and Real-Estate Businesses?
Back at the end of 2013, the price index of property from 14 major cities in Indonesia was estimated to have risen by 7.4%. This year, it was raised even further to 12.1% at the end of October. Surely, this shows how much this sector has prospered in this archipelago state.
There are roughly five main factors why this sector is flourishing. First, to grow, residential property needs a stable macroeconomic growth as well as strong purchasing power, along with customer confidence needs. As mentioned before that people in Indonesia are now growing. Especially the middle and middle-upper classes, the supply-demand chain has begun to change rapidly.
Adding on to the fact that half of the residents are in a productive phase of their lives. Making Indonesians eager to engage in competitive home-buying. With this statistics, it is not impossible that the demand will outnumber the supply.
The second reason, currently, is that Indonesia is experiencing a heavy urbanization trend, with half of the citizen now living in urban areas. Due to this phenomenon, the need for property in an urban area will increase significantly, even so for modern living spaces such as apartments and condominiums.
Also read: “Why the Insurance Industry Must Go Digital“
The limited availability of empty land will lead to raising the price of housing. This can become a green spring for property projects, to continue with vertical building in the already urban areas or to open up a new soon-to-be urban area.
The next factor is that the market for low and middle-segment housing is not small, making investors interested in building homes for lower income house seekers. Moreover, the Indonesian Government is also supporting this idea and encouraging investors to focus in this area.
We can see it from the “One Million Houses Program” that was launched by Indonesia’s President Joko Widodo to tackle residency problems for low-income citizens.
The fourth reason is the low-interest rate due to the policy of the Central Bank in Indonesia (Bank Indonesia), making this sector expand rapidly, especially between 2010 and 2013. The said interest rate is stable and kept at 5.75% between 2012 and 2013, while application of mortgage loans to banks rose significantly, with around 46% of the total bank loans taken due to mortgage.
The Effect of Digital Disruption for This Sector
The rapid and fast growing technologies are the major factors of the digital disruption we are experiencing right now. The effects are felt all around the world. With all aspects of our lives slowly integrated into technology, this affects customers’ behavior and pushes companies to reinvent their systems and business process.
However, a disruption in business is not always a bad thing, if we can exploit and make it advantageous and as a way of pioneering something new. Digital disruption can become a great catalyst to transform your business to become efficient and effective as well as less time- and money-consuming.
Not to mention, the digital disruption can prevent you from falling out from the game, keeping you competitive enough compared to other companies.
If we talk about digital disruption in the real-estate and property sectors, the most obvious effect will be customer engagement. First, we have to talk about why this sector is lagging behind compared to other sectors. The sole reason is that the property business is way too inconvenient for customers.
Furthermore, with the tight schedules of modern people, there is almost always not enough time to thoroughly think about choosing a house, getting a mortgage loan, or even moving home.
However, the effect is not only to engage customers better, but also can lead to solving communication problems regarding construction, or can help an investor to choose a site for the project, dealing with branding to the market, and many other functions.
James Dearsley, a proptech expert, once said that the emergence of the digital advance sprouted out the potential to make the selling process much easier while at the same time, reducing the number of people involved, giving buyers and sellers more control.
How RTC Helps Agents To Sell Houses
By digitizing their engagement with RTC, they can reach their target market better. For example, if we see the case of the online estate agent in the United Kingdom (UK), SellMyHome.co.uk, we will have a rough idea of how digital disruption can enhance this business.
They conduct online open houses to show the flats they want to sell. With the emergence of new customer behavior, who prefer making small research online before making a decision or looking personally, this is the best way for them to provide better experience for customers.
The online car showroom business, similarly, give their potential customers enough data to make a decision through live video conferencing. The property sector can also embrace this opportunity to present their products by using real-time communication.
If we look at another part of SEA, in Malaysia, the most tiring part of home-purchasing is to negotiate the price (41%), fees (39%), and paperwork (38%). It will be more stressful if both parties can do it in person. While half of them could be done virtually.
Also read: “WebRTC: An Introduction“
To top it off, in this service-sensitive era, customer engagement is a must. And dealing with a customer needs utmost care, because they are the lifeline of businesses. How exactly does RTC help the agents? First, as we have discussed before, the digital era has changed customers’ behavior greatly.
They tend to make a search online, gaining some insights, before deciding to buy or not. Even when they need to come personally. Such as buying houses or car, they will do the research first. Before heading to the desired places. Surely, this is the very first opportunity for your agent to rope in potential customers.
According to research, almost all millennials (reaching up to 94%) are surfing online to search for their future home, and 84% of them are baby boomers. However, right now, the property industry has only responded to at most 11% of incoming inquiries. Moreover, this industry is ranked 4 in 10 Most Annoying social media, rendering their customer engagement to fall behind compared with rest.
Upgrading With RTC
However, using RTC, they can reverse this setback by creating a powerful attraction, even for a casual viewer. Once the customers are engaged. They can be informed further with interactive messaging through chatbots. Keeping them interested in anything you want to sell.
By implementing live video call and real-time chat. A real-estate agent can promote homes to users online more easily. While providing busy customers a chance to take a peek at their potential houses. Without the need of coming in person.
On the other hand, the agent can also help customers by developing a “walk through”. His won’t replace completely a physicalwalk through because physical inspection is still important in house-purchasing. But this will save a lot of time for both parties.
The other benefit of using RTC for your company is that you can place an AI-powered selling agent 24/7. Fundamentally this will raise the productivity and selling index of your business. This will be more obvious if you implement chatbots in your customer service system. By applying AI, who can even reply on a weekend, you can reduce human workers’ workload. Giving them a chance to focus on sealing the deal with customers.
Chatbots can also help customers with the searches. Providing information about prices, open houses scheduled, investment options. And can even help them to find their dream home. Ultimately, this increases the engagement between the company and its customers.
With all that have been mentioned above, this industry has to embrace the disruption. And adapt fast in order to not fall behind other competitors. Choosing to turn the system and business process into digital is not something without risks. Because it can greatly disturb your core business. Thus, entrusting the digitization to the expert is undoubtedly the best and the safest choice like RTC.
Therefore, Qiscus is here and ready to help you to engage your customers digitally. We can help you implementing chatbot to the RTC system if you already have one. Even better, we can help you to make your own platform. Our products are highly compatible for real-time chat and video conferencing. Drop us a note at www.qiscus.com or you can read our white paper and see what we can offer for you.