Proptech adoption offers a huge opportunity for mature economies in Asia Pacific, such as Singapore, Hong Kong, and Japan, to promote real estate transparency. According to JLL's Global Real Estate Transparency Index (GRETI) 2018, these top investment locations are on the verge of joining the 'Highly Transparent' tier, which includes countries like Australia, New Zealand, the United States, and the United Kingdom. propertyfinder
"The proptech sector is rapidly expanding, particularly in Asia," says Jeremy Kelly, Director, Global Research, JLL. "However, adoption remains low in comparison to North America and Europe." "Proptech's potential benefits aren't just restricted to transparent marketplaces. It may also aid transparency in semi-transparent markets such as China, which has a thriving proptech sector but lacks traditional data sources."
According to Denis Ma, Head of Research at JLL in Hong Kong, "Hong Kong remains one of Asia's largest and most transparent real estate markets, according to our latest transparency survey. Despite being one of only a few cities in the world that still uses a deeds registration system to document land and property transactions, the city has been able to maintain this distinction. However, with the rise of proptech, the city's highly efficient real estate markets have the potential to become much more so, particularly in the area of conveyancing. However, reaching these new heights will only be achievable if the government commits to enacting the 2004 Land Titles Ordinance "Sustainability transparency is another critical area where both Singapore and Hong Kong might improve. Strengthening energy efficiency requirements, carbon reporting, and tougher energy usage disclosure will assist them in making the transition, and they may learn from Japan, which has been a global pioneer in sustainable transparency.
In Asia Pacific, the most significant improvements have occurred.
According to Dr Megan Walters, Head of Research, Asia Pacific at JLL, "Asia Pacific as a whole has made the strongest transparency improvements since 2016 compared to the other four areas examined by the report." "Developments in Myanmar, Macau, Thailand, India, and South Korea support this."
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Macau has also progressed by focusing on anti-money laundering, which has resulted in improved financial regulator oversight. It's also worth mentioning that India's reform-minded administration has made tremendous strides toward improving transparency and reducing corruption. A regional highlight is the Real Estate Regulatory Act, which was passed in 2016 and implemented in 2017. At the top of the 'Semi-Transparent' tier, the country joins China, Indonesia, and Thailand "Dr. Walters agrees.
JLL Macau's Managing Director, Gregory Ku, said, "Macau climbed 10 places to 60th position in this year's Global Real Estate Transparency Index, becoming the first Chinese territory to appear in the Semi-Transparent tier. The government's crackdown on money laundering, as well as initiatives to release precise residential transaction figures on a monthly basis and enforce new leasing restrictions, have all contributed to the success. In the future, we hope to see more real estate data made available to the general public."