By Rusmin Lawin, Vice-President of FIABCI-Indonesia
According to a Savills Hong Kong report titled “Covid-19 and Regional Property Markets” published in March 2020, two major concerns for regional real estate markets are changes in the uses of real estate and values placed on this real estate by investors and end-users.
Technology has been the biggest disruptor of real estate in the past decade, with more consumers relying on smart devices, which increases the demand for seamless and responsive services and products. As a result, this has not only affected the retail and logistics sector but also other asset classes.
The question begged is what happens next. While some may look to muscle their way into distressed assets, it’s very possible the commercial real estate market will never look the same.
Where Technology meets Real Estate
Thermal imaging systems are being paired with other tech like facial recognition, movement predictive algorithms, and data tracking to help contain the virus. Researchers and engineers in Taiwan acted quickly together to create a management system for coordinating health and travel data. The brave new world for real estate should adopt the new normal for mankind which includes real-time symptomatic screening and real estate digital infrastructure interoperability with public health system for contact tracing. The real estate associations may engage with government stakeholders that commercial buildings with health screenings and automated systems may have the privilege of business operations/continuity.
In this pandemic, even the United States is still playing catch-up. The administration has yet to initiate public-private coordination to build a resilient digital infrastructure against the epidemic. By contrast the Asian countries have been doing reasonably well and the same momentum should be applied to real estate.