PETALING JAYA: Malaysians researching financing for property online, exceeds global average.
PETALING JAYA: HSBC’s latest Beyond the Bricks home buying report, says the number of Malaysian home buyers going online to research home financing options is above the global average.
About 77% of the 1,000 Malaysians surveyed online for financing options compared with the global average of 74% .
With property seen as the next industry to face disruption by technology, property websites are using technologies such as artificial intelligence (AI) and virtual reality to transform each stage of the home purchase and deliver end-to-end services including many of those traditionally offered by estate agents.
Property Technology (PropTech) expert James Dearsley said brokers are still the most trusted source of mortgage advice however, in an increasingly time-poor society, banks, mortgage brokers and advisers will need to offer instant service and analysis to meet the rising expectations of consumers.
Malaysia was ranked behind the UK, US and Australia in terms of researching online for property financing.
HSBC Bank Malaysia Country Head, Retail Banking and Wealth Management Lim Eng Seong said the process of buying a home will change beyond recognition in the coming years with transactions being streamlined, buyers and sellers having greater control and relying much more on technology.
He added that the speed at which the digital revolution in home buying rolls out around the world will depend on local regulatory environments and people’s willingness to trust technology for such an enormous purchase.
“The traditional role of estate agents would be reinvented, as we now have many online platforms where homeowners can market their own properties and negotiate directly with sellers,” Lim said.
The report also ranked Malaysia among the nine when it comes to digitally active home hunters, with 81% using online channels such as website, mobile, emails to research their recent property purchase. The UK leads the pack with 93% when it comes to researching on property purchases.
Close to half of the Malaysians surveyed (49%) said the most stressful part in the process of buying a home is when it comes to dealing with the parties involved in the deals, namely the real estate agents, solicitors, sellers and developers.
This is followed by negotiating the price (41%), fees (39%), and understanding the legal paperwork (38%).
Dearsley said, selling houses through property websites that offer end-to-end marketing, search, financing, negotiation, transaction and conveyancing services may become a trend in the future, significantly reducing the time and hassle for home buyers.
“We can expect to see more on-demand services, retaining the important human touch, but provided digitally through live chat or video. With all of our personal information held digitally not physically, Artificial Intelligence (AI) will assist by analysing personal data, assessing lending criteria and narrowing down product options. This will allow instant mortgage approvals and mortgage solutions that are much more tailored to individual needs,” Dearsley said.
“New technologies have the potential to disrupt the property industry by making the purchase process much easier and reducing the number of people involved in a sale, so that buyers and sellers feel more in control. We are already seeing the rise of online do-it-yourself platforms, such as Tepilo in the UK, that allow homeowners to market their own properties and negotiate directly with sellers,” he added.
PropTech is seen as the new FinTech (financial technology) which will bring similarly radical changes over the coming years. Funding of disruptive Property Technology firms has grown phenomenally, from RM945 million (US$221 million) in 2012 to over RM8.5 billion (US$2 billion) in 2016.
HSBC advises home buyers to be equipped with the knowledge to ensure that informed decisions are made, be clear of their priorities, and keep up-to-date with new technology to ensure you feel comfortable using it and consider the experts.
A total of 9000 people were surveyed from Australia, Canada, China, France, Mexico, United Arab Emirates, United Kingdom, United States.
