Efficient Property Markets
(ASX:PCH) Property Connect is an Australian based real estate services and technology company. The company has developed the LiveOffer platform, designed to create an easy, fair and transparent system under which potential tenants can negotiate the best offer on a rental property and where vendors can optimise buyer engagement in the sale of residential real estate.
It is a well understood economic and financial theory that open and transparent markets lead to better outcomes for all participants. This can be seen in the evolution from open cry trading in equities and derivative markets to T+2 and soon to be instant settlement through the use of blockchain technologies. Removing risk, intermediaries and delays leads to more efficient outcomes for all.
Property Connect's LiveOffer platform for rental listings provides renters, landlords and property managers with a real time view of the market as well as supply and demand metrics for property listings. This allows all parties to negotiate terms in a fair and transparent manner. The system has been designed to comply with both US and Australian licensing and consumer laws to promote anti-discrimination and equality with an audit-able transaction and bidding register.
The platform is designed to match tenant move in dates and length of tenancy with those of the outgoing tenant and the landlords objective of minimising vacancy rates. There has been much hype about "rent bidding" and rental increases, but the evidence suggests that the platform seeks to promote tenants to pre-register, thus qualifying themselves as "quality" tenants through the use of social profiles and tenancy database checks, in order to appeal to landlords and property managers, it is not solely driven by pricing. The empirical evidence also suggests that the market for rental demand varies dramatically by suburb, property and seasonal variation, something which is not born out in any existing market research.
LiveOffer is ideally suited to busy professionals and Milennial's. They are tech savvy, time poor and predisposed to being early adopters who are looking to take advantage of market efficiencies in the property sector. They form a large segment within the Australian rental market. Having said that, the platform has been designed to cater to all segments, including those in the affordable accomodation space.
We are pleased to have been trialing the platform with the likes of Century21, Mc Grath, Hunter and Direct Property Group, building upon the lessons we learnt last year in the US market within the multifamily asset class. Below is an excerpt from Mc Grath Lower North Shore, which explains the system and also the market segments where this could be applied. Today, Airbnb dominants the premium on demand rental economy, but there is no reason why LiveOffer could not serve this segment along with commercial, student, old age or defence listings.
Sales - Online Auctions
The LiveOffer platform is being enhanced to extend to the sales auction market space, a uniquely dominant sales format in the Australian market.
Again, efficient market clearing principles will allow multiple parties to bid in a fair and transparent manner, having complied with all the regulatory requirements for conducting an auction. We believe with the aid of virtual reality and augmented reality this will provide consumers with a truly unique experience.
Our ambition is to launch with off the plan developers, but then to extend into existing property listings.
Stay tuned for more on this marketplace feature as we look for lead partners, ranging from development to financing, to provide a liquid and real time auction market which allows consumers to achieve the best possible outcomes, both domestically and abroad.
For further information or to talk to us about partnering with us on any of these opportunities please email us at email@example.com