Proptech adoption in Thailand accelerating
Growing digitalization in real estate remains the key driver in the long term
Property technology or proptech has developed rapidly in recent years primarily in response to the constant need to enhance efficiency and human experience in the real estate sector. Its influence is now rising at an accelerated rate as the property industry has called for a greater emphasis on health and wellbeing in face of the pandemic, according to JLL. The property consultant also expects the momentum to continue into the post-COVID era as the way real estate is operated and managed is becoming more digitalised.
Dexter Norville, Head of Property and Asset Management at JLL, says "Whilst all of the key real estate sectors have embraced technologies that automate processes and therefore enhance efficiencies and human experience, the pandemic is speeding up the ongoing adoption of these technologies and the development of new tech solutions. A wide introduction of contactless technologies exemplifies the case well as users expect of higher standards of hygiene and minimum in-person interactions in properties or precincts where they live, work or visit."
- The PARQ, a mixed-use development and a joint venture between TCC Assets with Frasers Property Holdings, introduced germicide UVC robot and installation of UVC emitters in its air-cooling system that help eliminate bacteria and fungus and reduce the spread of airborne germs.
- Similarly, leading residential property development firm Ananda Development launched its “COVID FREE ZONE” initiative including the introduction of a UVC technology that is claimed to provide 99.9% protection against COVID-19 and filter PM 2.5.
- Robots are used at CentralWorld and Siam Paragon to do temperature checks. The ones at Siam Paragon also trail shoppers reminding them to wear masks.
Though some of these anti-pandemic technologies will fade out in the post-COVID era, others will stay on in the long term. After all, as the real estate industry is moving towards digitalization, proptech will continue to be one of the most important drivers in reimagining the future of real estate.
"We are shifting towards a more digitalised way of property and facilities management and this is an exciting journey in which protech has played a big part," says Mr. Norville.
Apart from health and safety, JLL has seen proptech play an increasing role in mitigating potential risks and maximising long-term asset value in many other areas. For instance, achieving operational excellence requires nimbleness in a rapidly evolving environment and embracing technological advancements such as IoT, big data and AI.
Developers and operators have, in some cases, succeeded in creating an agile working strategy which coordinates applications, APIs, and management systems. Operational excellence can be therefore realised to mitigate risks, save energy and improve workflow efficiency and flexibility.
To enhance occupiers’ experience, some landlords or property managers, through centralised command centers, will use a wide range of sensors and computer visualisation to capture human behavior as it takes place on the property. Data can be further analysed to identify user needs by leveraging technologies such as big data or machine learning in order to provide instant support and customised service.
Among a few prime examples is One Bangkok which is currently under construction. The capital’s largest mixed-use development with 104 rai of land and 1.8 million sqm of floor area will be enabled by a smart centralised infrastructure system, with features such as central utility plants, centralised security and engineering hubs, and water and energy management smart grids overseen by a command centre and more than 250,000 smart sensors for efficient facility management and preventive maintenance.
The Makkasan project which is currently at the design stage is another major mixed-use project that aims to have smart technologies and data driven management solutions at its core.
Upon completion, both One Bangkok and the Makkasan project are expected to become truly digital assets that will set new standards in Asia Pacific.
"In Thailand, although proptech is still in relative infancy, its adoption is becoming exponential. In response to rising expectations from end-users, key real estate stakeholders have begun to emphasise new value drivers beyond the common real estate mantra of “location, location, location”. That will collectively drive innovation forward to reshape the future of real estate," says Mr. Norville.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.