Greater China has attracted 41% of proptech funding

Greater China has attracted 41% of proptech fundingHong Kong and Mainland Chinese startups have together attracted around 41% of global proptech (property technology) investment, research from professional services company JLL indicates.

Greater China has emerged as the top market for proptech startups in Asia-Pacific, with startups having raised around US$3.02 billion – over 60% of APAC's total proptech funding – since 2013 in 34 deals.

Proptech startups are exploring applying emerging technologies such as  data analytics, artificial intelligence, the internet of things, virtual reality and blockchain to transform the real estate sector.

“The high cost of living in Hong Kong and the city’s history as a traditional financial center have arguably held back innovation and the development of the tech industry in Hong Kong. But the city’s tech industry is steadily gaining momentum and there are an increasing number of unicorns that got their start in Hong Kong,”JLL associate director of APAC research Christopher Clausen said.

“The Hong Kong Government’s recent launch of the HK$2 billion Innovation and Technology Venture Fund should help spur further growth of the tech - and with it proptech - sector in Hong Kong.”

He said the government will also be able to support the development of proptech and other emerging technology segments via tax holidays as well as business incubators for qualifying companies.

“Hong Kong work visas for expatriates with tech skill sets in demand would also support the growth of the industry. But ultimately it will be market forces that determine whether Hong Kong’s tech industry continues to grow,” he said.

Asia-Pacific is meanwhile the top market for proptech investments worldwide, accounting for over 60% of total investment. By 2020, total proptech investment in APAC is expected to reach US$4.5 billion per year.

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