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Market Insight - What's in store for 2021?

2020 was a transformative year. Amidst the turbulence and uncertainty in the real estate sector, we've seen the emergence of the pandemic narrative - essentially that everything has changed forever.

The real estate industry is moving very slowly, but it's never moved this fast. Billions upon billions are being invested in global companies "reinventing" real estate.  Investors - playing the long game - are betting this is the moment when technology transforms real estate in a meaningful way.  So, what's in store for 2021?

  • Great customer service will be everything - essentially a 'concierge attitude' - delivering superior personalised service to vendors and buyers. The recurring theme here is the importance of people in the process.  Augmenting, not replacing humans with technology, is the winning formula. Buying or selling a home is still an emotional transaction for most people.
  •  Covid-19 will continue to impact the real estate market - Lockdowns impact sales, as demonstrated by the two NZ lockdowns in 2019. As the rest of the world battles new strains of Covid-19, NZ remains isolated and more Kiwis returning home will impact the market.
  • The NZ property market continues to have low inventory, but high buyer demand. The Real Estate Institute of New Zealand stats shows that the lack of houses for sale is putting pressure on prices and resulting in quick sales.
  • Technology will continue to play a big role in the national and international real estate markets, as the sector continues to evolve and adapt to the online environment.

Mike DelPrete is a Global Real Estate Tech Strategist and an Independent Director of Tall Poppy Real Estate.