View Full Version : Will technology eventually "disrupt" real estate in a big way?
With technology ever improving and disrupting existing business models and industries, will it eventually erode the many advantages of real estate (e.g. location , location, location)?
For example, can see e-commerce is gaining traction. Even capitamalls is taking notice of this threat.
Groceries/food can be ordered online and delivered right to your door step. More companies putting in place flexi work arrangements, with technology as a key enabler. The young is tech savvy and willing to embrace new technologies. Will telework take off in a big way that people no longer have to travel to office for work and be able to work from their homes in any location/country?
With technology ever improving and disrupting existing business models and industries, will it eventually erode the many advantages of real estate (e.g. location , location, location)?
For example, can see e-commerce is gaining traction. Even capitamalls is taking notice of this threat.
Groceries/food can be ordered online and delivered right to your door step. More companies putting in place flexi work arrangements, with technology as a key enabler. The young is tech savvy and willing to embrace new technologies. Will telework take off in a big way that people no longer have to travel to office for work and be able to work from their homes in any location/country?
It already has. I have written in length before the effects on how technology influences sizes of units. The space required for new generation is very different. Hard to accept for old schoolers though.
hummm..I have been observing this for a long time...like decade ago?
With the effects of decentralization...How working from home, eCommerce will eventually make location irreverent...compounding the effects...etc
Convergence of technology will mean shrinking....smaller home appliances...more efficient use of space etc...
Probably in 20-30 years time ba.
Don't seem to happen for banking front end, all still concentrated in CBD
The rich & influential will still want to live in their own enclave, don't see how technology will make these people want to live beside the poor or even middle class
With technology ever improving and disrupting existing business models and industries, will it eventually erode the many advantages of real estate (e.g. location , location, location)?
For example, can see e-commerce is gaining traction. Even capitamalls is taking notice of this threat.
Groceries/food can be ordered online and delivered right to your door step. More companies putting in place flexi work arrangements, with technology as a key enabler. The young is tech savvy and willing to embrace new technologies. Will telework take off in a big way that people no longer have to travel to office for work and be able to work from their homes in any location/country?
hummm..I have been observing this for a long time...like decade ago?
With the effects of decentralization...How working from home, eCommerce will eventually make location irreverent...compounding the effects...etc
Convergence of technology will mean shrinking....smaller home appliances...more efficient use of space etc...
Probably in 20-30 years time ba.
I wouldn't put down a time frame. It might happen sooner than we think. Although the idea of e-commerce has been around since the late 90s? It appears to gain traction in recent years. There is now the idea of the internet of things and corporates and tech entrepreneurs are rushing in that direction to capitalise on opportunities. While real estate won't totally go out of fashion, the impact of tech will be profound and might reduce real estate to just bricks and mortars, a form of commodity. Is it any coincidence that Li Ka Shing has been shifting out of physical assets and betting his money on tech?
Since the paradigm has shifted, why is everyone still so obsessed with real estate and why do people still get hard-up about CCR vs OCR, freehold vs leasehold, prime vs suburban??? In time to come, it may not matter that much.
Along with the paradigm shift, there is a strong left political wind that is blowing. Real estate, often seen as a wealth tool or associated with the rich, might be de-rated by policy makers moving forward, and in extreme cases, even attacked by politicians who want to win votes.
Don't seem to happen for banking front end, all still concentrated in CBD
The rich & influential will still want to live in their own enclave, don't see how technology will make these people want to live beside the poor or even middle class
It could be the case now. But we are starting to see the concept of mobile bankers. In the not too distant future, bankers could be reporting for work from their homes. Banks are looking to cut their real estate occupancy costs. Increasingly, companies are getting used to the idea of measuring performance of their staff not based on face-time. The future rich could be making their money from tech. In fact it is already happening. And because they see the many possibilities due to their background, they may not be too hard-up about location.
If they are really concerned about winning votes, may be they can consider increasing the income tax of the high income earners and those of businesses and remove GST? GST is a well-known regression tax and has been heavily criticised for causing living costs inflation and its removal will definitely benefits >90% of the citizens and most will be happy to vote for them with both arms and both feets! But then again, you know, that will be the last resort because you know........, well,...... otherwise why would GST has been implemented in the first place despite strong objections from the general population??? :hopelessness:
Increasing property taxes will not benefit most citizens because >90% of them are property owners! This will only back-fire for sure!
Even the so-called wealth tax may not look so good as most likely it will hit the majority of the middle-income citizens (when most citizens fall into the middle income range. Few are truly in the upper-income, those earning >$1M a year). If they really implement wealth tax, they should just target those earning >$1M a year (like the policy makers themselves).......
To de-rate real-estate as a store of value, Central banks all over the world must first stop printing money whenever their economy is in recession otherwise real-estate can never be de-rated!
I wouldn't put down a time frame. It might happen sooner than we think. Although the idea of e-commerce has been around since the late 90s? It appears to gain traction in recent years. There is now the idea of the internet of things and corporates and tech entrepreneurs are rushing in that direction to capitalise on opportunities. While real estate won't totally go out of fashion, the impact of tech will be profound and might reduce real estate to just bricks and mortars, a form of commodity. Is it any coincidence that Li Ka Shing has been shifting out of physical assets and betting his money on tech?
Since the paradigm has shifted, why is everyone still so obsessed with real estate and why do people still get hard-up about CCR vs OCR, freehold vs leasehold, prime vs suburban??? In time to come, it may not matter that much.
Along with the paradigm shift, there is a strong left political wind that is blowing. Real estate, often seen as a wealth tool or associated with the rich, might be de-rated by policy makers moving forward, and in extreme cases, even attacked by politicians who want to win votes.
Larger handphone screens but lighter weight, larger TV screens but flatter TVs, beautiful interior designs but much smaller interior spaces - these are the current trends I believe.
With technology ever improving and disrupting existing business models and industries, will it eventually erode the many advantages of real estate (e.g. location , location, location)?
For example, can see e-commerce is gaining traction. Even capitamalls is taking notice of this threat.
Groceries/food can be ordered online and delivered right to your door step. More companies putting in place flexi work arrangements, with technology as a key enabler. The young is tech savvy and willing to embrace new technologies. Will telework take off in a big way that people no longer have to travel to office for work and be able to work from their homes in any location/country?
I think technology will result in Real Estate agents having a smaller and smaller role. In many other areas, the role of the middleman is already redundant. Matter of time that the RE agents (who don't add value) - those who do will still have a role - will go the same way too. On the other hand, those who set up systems/apps/sites etc that allow for direct buyer-seller interaction will benefit.
Still don't see how the future rich will want to live beside the poor and the average middle-income families..................
So, location and class of your property is still very important.................
Go look at those OCR private condos that are >20 years old, look at their state of maintenance. Cheap maintenance fund means cheap STATE of maintenance right???
Then go look at CCR prime private condos like Ardmore Park. Can you see the difference despite being similarly about 20 years estate? If you are rich, you want to live in the OCR private condos or Ardmore Park? :beats-me-man:
It could be the case now. But we are starting to see the concept of mobile bankers. In the not too distant future, bankers could be reporting for work from their homes. Banks are looking to cut their real estate occupancy costs. Increasingly, companies are getting used to the idea of measuring performance of their staff not based on face-time. The future rich could be making their money from tech. In fact it is already happening. And because they see the many possibilities due to their background, they may not be too hard-up about location.
I wouldn't put down a time frame. It might happen sooner than we think. Although the idea of e-commerce has been around since the late 90s? It appears to gain traction in recent years. There is now the idea of the internet of things and corporates and tech entrepreneurs are rushing in that direction to capitalise on opportunities. While real estate won't totally go out of fashion, the impact of tech will be profound and might reduce real estate to just bricks and mortars, a form of commodity. Is it any coincidence that Li Ka Shing has been shifting out of physical assets and betting his money on tech?
Since the paradigm has shifted, why is everyone still so obsessed with real estate and why do people still get hard-up about CCR vs OCR, freehold vs leasehold, prime vs suburban??? In time to come, it may not matter that much.
Along with the paradigm shift, there is a strong left political wind that is blowing. Real estate, often seen as a wealth tool or associated with the rich, might be de-rated by policy makers moving forward, and in extreme cases, even attacked by politicians who want to win votes.
People still need a roof over their heads. Just the the location near town etc might not be so relevant in future.
They are still waiting for their hawker center.
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