A Sydney property advisory company is planning to lead the way in disrupting Australia’s $6 trillion property industry through a brand new incubator program.
Esho Property Group (EPG) founder Peter Esho says there is great opportunity for tech founders and entrepreneurs to disrupt the property asset class in Australia.
“It really hasn’t evolved over the past forty years,” Esho tells StartupSmart.
Esho has commenced discussions to create an incubator program targeted at fintech solutions for the property market.
As a property industry expert, Esho says disruption in the space requires a strong understanding of processes, legislation, systems and experience within the sector to identify the key problems and opportunities for innovation.
This is where EPG wants to step in as an advisor and potential investor.
“We want to be a gateway to provide a framework around the problems and then have either tech founders or entrepreneurs help solve them,” he says.
With discussions underway, details of the incubator program are expected to be announced in the second quarter of 2016.
“Most likely, we’ll team up with a fintech incubator that’s running an incubation program that has the infrastructure and systems in place,” he says.
“What we’ll do is provide the domain experience and access to capital.”
Esho says there are three key areas of opportunity for entrepreneurs in this market: property management, conveyancing and commercial property space.
In property management, he says there is an important need to enhance the outcomes for landlords as investors and tenants as customers.
The current process of property owners leasing their assets through suburban agents for market-determined commissions is dated, Esho says.
“The traditional real estate agent is probably not the most scalable way,” he says.
With tech innovation in this space limited to tenant payment platforms, Esho says there is large scope for disruption so tenants and landlords alike can enjoy better solutions in regard to issues like housing shortages, maintenance and tenancies.
With every property purchased going through a conveyancing process, Esho says founders should think about solutions to take this online.
While there has been a small emergence of e-conveyancing startups like Quicklaw Conveyancing in New South Wales, Esho believes Australia has a lot of catching up to.
He says part of the issue is there has not been enough convergence of financial services like planning or stockbroking and property.
In the US, startups like VTS are disrupting the commercial property market by streamlining lease and asset management processes.
“We need to look at using space a little better and more efficiently,” Esho says.
“And put technology around to manage that.”