Potential disruptors to the commercial property market
South Africa - Rawson
“Disruptors in the real estate market may be described as new developments, trends or technologies which alter the way business is done and understood in the existing market,” says Leon Breytenbach, National Manager of the Rawson Property Group’s commercial division. Breytenbach discusses a few of these disruptions in order to better understand their workings and how they may be capitalised upon. The commercial property market has undergone some great changes in the past, and there could be major changes in the pipeline due to the occurrence of constant technological advancement.
Change in distribution and logistics
As online shopping drastically increased in popularity, customers expect faster execution of their orders, even same day delivery in many instances. Some retail properties may look to evolve to dual functioning entities which receive consumers in person as well as managing on-line orders and deliveries. This may, in some cases, require a smaller visible retail presence but increase the need for more localised warehousing in order to speed up the delivery process. “Owners of suitable industrial spaces may potentially benefit as they redesign their properties to facilitate this new market,” Breytenbach suggests.
Cape Town apartment rentals getting cheaper
South Africa - IolProperty
The supply of apartments in central Cape Town is increasing and the rents are getting cheaper according to Carola Koblitz, communications manager of the Cape Town City Central Improvement District (CCID) and the author of the organisation's annual publication, The State of Cape Town Central City Report.
Koblitz was speaking at the organisation's annual business breakfast event, held at the Cape Town International Convention Centre (CTICC) yesterday.
"We currently have 280 units to rent in the CBD, versus 150 in December 2017. We've also seen a significant decline in the average monthly rentals being asked. In December 2017, the average (rental) for a studio was R12 186, and it is now R11 286," said Koblitz.
Vendors want their agent to be more like Amazon
UK - TodaysConveyancer
A report produced by proptech specialist OneDome, has revealed that digital functionality used by big-name consumer brands such as Uber and Amazon could be the key to high-street agents winning more instructions.
OneDome’s Consumer Preference Report summarises the responses of 1,000 homeowners across England and Wales, who were asked which consumer brand has the best digital experience. The respondents, aged between 25 and 64, who had either moved in the past three years, or were planning a move, were asked to choose between brands from the retail, leisure and transport industries.
Having selected their preferred brand, they were shown four areas of functionality pertinent to that brand and asked to consider which one (if any) they would like their estate agent to have, and whether implementation of that functionality would make the respondent more like to instruct that agent to sell their home.