In April, WealthPark released our new Global PropTech Study 2022 white paper in an effort to illustrate the need to understand not only the global industry, but also how Japan fits into the global tapestry of the valuable PropTech industry.
Our white paper was issued by WealthPark Lab, the research institute of WealthPark. In the introduction section, Kay Kato, WealthPark Lab President, says “...housing is the largest and most important wealth that we humans possess. The total global value of residential real estate is approximately US$ 260 trillion, about eight times the size of commercial real estate, including office buildings and retail facilities. The total market capitalization of the world's listed companies is a massive US$ 85 trillion, but only about one-third the size of residential real estate. Given the fact that household surveys in OECD countries show that housing is the single largest household expense and that most of our lives, including sleep, are spent in our homes, there is no doubt that housing is the most important place as a foundation for our wealth and happiness.”
Kato continues to outline that technology can enhance our lives not only within our homes but also when searching, buying and selling homes too.
He also explains that the global amount of venture capital flowing into the residential PropTech industry saw record inflow in 2021 with 2022 showing no slowdown.
So where does Japan fit into all this?
Japan's PropTech industry is nascent compared to global trends. We believe that this white paper can bring a lot of inspiration for domestic PropTech companies, like WealthPark, and real estate companies to develop innovative business models, products, and services that address the deep-rooted industry issues and create business opportunities to bolster the growth of over JPY 400 trillion domestic residential real estate.
Source: Real Estate Tech Association for Japan as of July, 2021
Despite being nascent, the Japan residential PropTech industry has a lot of opportunity to grow. Together with WealthPark’s white paper, WealthPark aims to be the bridge between the global and domestic markets to facilitate the international circulation of technologies, knowledge and investments across all segments.
As evidence, our property management platform has over US$ 15 billion assets under management and 30,000 plus property owners globally.
Elsewhere within the industry, according to a July 2021 survey, over 90% of 237 respondent real estate companies said they are implementing some form of digital transformation. Within that 90%, over 40% have adopted third party real estate management system services, CRM tools, or virtual / online tour services.
These respondents represent only a slice of the total market but the trend within the respondents is clear; Japan’s residential real estate market has a great appetite to digitally transform. This trend was happening prior to the onset of the pandemic however the last two years have supercharged the movement.
If you are in the non-Japan PropTech industry and want to learn more about our market, then we want to connect with you. WealthPark exists for this and we created this whitepaper to display our knowledge and expertise not only here in Japan but globally as well.
Click here to register your contact information to receive the full white paper.
