Almost a third of the economy faces a digital “big bang” over the next three years, pushing companies as diverse as retailers, banks and real estate agents to rethink their strategies, a new report says.
Real estate, professional services, and arts and recreation also faced a dramatic disruption
The report by Deloitte, published on 10th of September, assesses which parts of the economy are likely to see a change of more than 15 per cent in key metrics such as revenue or cost structures due to the digital revolution.
However, he said the long-term impact on the economy was positive. Ultimately, it would lead to more higher-paying jobs and higher productivity, as was the case after the wave of deregulation in the 1980s.
Times of extreme disruption and extreme pressures on costs and revenues are historically periods of great failure. However, they also represent great opportunity. How do you see real estate being disrupted to your benefit?
Guest Columnist Martin Compton
8 Comments
Glenn Rogers
What a strange article Clancy Yeates is very short on detail, hardly an article at all really, just a space filler.
Changes are happening, in the media especially, hence the Faifax and News problems, News tried to move in advance and be prepared, Fairfax did in most areas except news itself.
There was and still is a model out there to save print but no one listens……..
Anyone with a half decent web site in real estate or accommodation should hang on as these assets will increase in value tremendously……….if run correctly.
Greg Vincent
Now is a golden opportunity for agents to differentiate themselves in the online sector by using Strategic Positioning & embracing Magnetic Marketing Strategies.
There is a shift coming and if agents simply rely on the Major Portals (Agent Cloning Sites) to provide the answers then they are in for a very rude & business threatening shock!
Glenn Rogers
They will continue to rely on the major portals Greg, the only thing that can save them is the Institutes but the agents have chosen to stick to the path that will decimate their businesses in the end.
vic Del Vecchio
Glenn,
I agree.
The institutes need to be front and centre in trying to identify the issue that agents will be facing as a consequence of the significant disruptions coming within the next year or so.
Instead of having their main focus on creating and managing web portals, start working in the interests of their members in some in depth analysis.
vic Del Vecchio
Martin is spot on with two major observations. The business of Real Estate Selling will change dramatically in the coming few years and “in times of Chaos comes opportunity”
The point most observers of business change miss is in trying to identify, ahead of the event, what the changes are likely to be. It is wrong to simply identify only one or two aspects of possible change. It has been my observation on the many posts, that have come through social media and blogs, is the notion that it is the digital revolution that is the main danger to be addressed.
I see the issue as much broader than that.
The GFC came about as a result of a number critically important changes in the finance industry that saw a headlong charge towards “money creation”. Prior to deregulation of the finance industry, the market fundamentally utilized real money that came about from genuine growth in economies or from funds available from loan repayments. From the lates 70’s, and not only in Australia, but most of the Western World, leveraging and derivatives based on the a guess at the future value of assets, created a flood of available funds for the housing market. Banks who specialized in retail lending and funded from domestic market found that they could make considerably more profit from sourcing funds from the international wholesale market. As a consequence these retail banks bought into merchant banking. Policy changes to the way funding occurred and the marketing of money to the public grew exponentially.
Regulators across the world are now having to rethink the practices of Banks and the message coming through, particularly after the LIBOr debacle, is to separate retail from whole banking. This will come about for certain and the Finance sector will more resemble pre 70’s operations.
The implications from these wind backs is what real estate agents should be focussing on when we ask the question: “What will you do when the real estate market has been disrupted?”
To answer the question Real Estate agents (or more particularly the Industry) need to identify what the issues will likely be. And let me tell you the major issues will not be found by focussing on the digital revolution.
Martin Crampton
Good point, Vic. However, better to have digital resources to assist with the solution(s), than not 🙂
vic Del Vecchio
Agree Martin – wasn’t meant to dimish the value of digital resources.
Andrew Blachut
On your mark, get set……