News and Views

Here’s why big data is a game-changer for Malaysia’s real estate players

March 24, 2024

Big data analytics is revolutionising the way businessesacross the globe operate and Malaysia’s real estate industry is no exception.

The unprecedented pandemic and movement control orders (MCO)saw a shift in homebuyer preferences and thanks to advancements in dataanalytics these changes in trends are now measurable and tangible – a feat nearimpossible just decades ago.

Proprietary data analytics platforms such as DataSense (formally Vantage+) allowmarket players to stay ahead of the curve in an era riddled with uncertaintyand unprecedented challenges.

Data analytics empowers stakeholders in the real estateindustry to:

Identify trends and opportunities

Property portals such as PropertyGuru.com.my track Price,Supply and Demand Indexes by analysing sale and rental listings. Trending areasshared by the portal also provide invaluable insights on the interests of sitevisitors.

The recently published PropertyGuruMalaysia Property Market Report Q3 2022 is an example of the quarterlyreports published that are invaluable to market players and consumers alike.

Another alternative in leverage data is to study pasttransactions for trends and buyer preferences, now made possible by platformssuch as DataSense (formallyVantage+).

DataSense (formallyVantage+)  by PropertyGuruDataSense is an enterprise grade Software-as-a-Service (SaaS) partner thatprovides big data analytics and solutions in the real-estate ecosystem.

The platform pairs public and private transaction data toallow users to identify hotspot areas, buyer trends, insights on newdevelopments as well as rental and auction data via an intuitive dashboard.

By identifying hot spot areas with the most transactions andthe price range of these purchases, developers can plan ahead to meet marketneeds.

Make smarter decisions

The access to information big data platforms bring allow fordata-led decision making, which in turn minimise risk and the potential forincurring greater losses.

By analysing real-world data on how, where and whenhomebuyers are making purchases, market players are able to reduce theguesswork and justify business decisions based on statistics.

For example, DataSense (formally Vantage+)  is able to filter transactions between firsthomebuyers and investors (categorised as those who own more than one property)thereby allowing property developers to cater potential products to customerneeds.

Improve operational efficiency

Data analytics can help improve the accuracy of marketresearch and feasibility studies, which could potentially have a direct impacton profitability.

In other instances, the use of big data helps speed upbusiness processes and reduce workload. For banks, delays in processing loanapprovals could mean potentially losing a client.

On the other hand, rapid approval of applications canundermine proper due diligence that can be costly if mortgagees’ default.

Through AI-powered tools like ProxyPrice, valuers are ableto strike a balance between speed and accuracy by quickening turnaround timeamid increasing demand without compromising appraisals.

ProxyPrice is a proprietary valuation model designed toprovide an automated indication of current market prices. It analyses recenttransaction data against the current comparable market prices to instantly generatea property’s estimated value.

Rather than replace human valuation, it is an predictivetool that complements a valuer’s opinion and speeds up time-consuming manualvaluations.

Better targeted advertising

Savvy online marketers know effective targeting for socialmedia ads depend on understanding audience behaviours, interests and thenailing the demographic.

By analysing transaction data, property developers are ableto optimise ad spend by better defining the target market and narrowing downthe audience.

DataSense (formallyVantage+) allows users to examine the demographic of homebuyers in abuilding or area by age, gender, race and if buyers are investors or firsthomebuyers.

The data helps developers capitalise on other forms of mediabuy as well for the best ad placements that would appeal to the relevant targetmarket.

Ultimately, big data analytics can usher in a new era ofdigitalisation for the local real estate industry and early adopters of dataanalytics platforms stand to edge out over competitors while minimisingoperational risk.

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