How Internet of Things (IoT) will influence the Thailand Real Estate market
Real Estate industry in Thailand and IoT
published : 14 May 2019 at 15:08
writer: Special Publications
Forever known as the golden asset industry in any geography, real estate is the go-to investment preference, even in Thailand. Thailand has recorded high growth in the real estate domain, especially with a growing spending power in the Asian region. In a changing scenario of competition, unpredictable markets and inter-linkage with the tourism industry, the real estate market is more dynamic than ever.
In this game, competition is as cutthroat as it infamously is. Internet of Things (IoT) is steadily turning out to be a game changer. This technology is revolutionary and offers cutting edge innovations. IoT enhances the connectivity of our physical world.
A bird's eye view of Thailand's Real Estate market and its changing scenarios
The upcoming times will bring important moderations in the Thailand property market, slow growth in many sectors and an incoming wave of new supply.
The competition for increasingly rare sites is still hot with the increase in land prices and scarcity of free land in prime places. Yet, with new regulations and a new Bangkok City plan ordained to come ino effect in 2020, developers are taking a step back to assess the situation.
IoT and Real Estate in Thailand; the crucial link
With the real estate industry seemingly mainly depending on raw materials like cement, concrete and steel, IoT may not seem very relevant at first. But a closer look reveals that IoT is practically changing the way things everything is done in the sector. Customers are changing preferences and driving demand and transactions. In the near future, businesses will see IoT playing an increasingly relevant and pertinent role.
Thailand is no stranger to the latest innovations in the technology fields that are building the growth of real estate spaces. There is a considerable advancement in devices and sensors that are being employed to capture data. This is pushing real estate providers to create distinct value to customers by intimating smart solutions to have control over various systems in homes and offices.
In the Thai market, a major shift has been noticed in real estate consumer behaviour. We see the transfer of decision-making power from generation X to the millennials. The so called “new Thai generation” of millennials is driven by a buy-to-let lifestyle, seeking investment opportunities in real estate early, driving technology-enabled services in the real estate space.
This is more so for Thailand where data is relatively cheaper than in China or the west and almost anyone who is earning a living is using a smartphone with the internet. It's all set to revolutionise the real estate sector.
How IoT serves in the business in the Thai Real Estate sector
- IoT makes real estate spaces smart
In Thailand, clients are looking for automated solutions to perform their daily chores that make lives easier. For example, a smart HVAC system at home could sense the optimum usage temperature and the tenant's schedule and automatically start before the tenant enters the home. This will help in improving user experience and give a boost in building an efficient system operation. Resultantly, reaping better economic results.
Likewise, a smart security system could help ensure safety by sensing and critically analysing regular activities in the house and informing the user of any changes or discrepancies.
- IoT has a considerable impact on energy efficiency
In Thailand where energy distribution is a matter of concern, IoT plays a key role in recording the energy consumption patterns of systems and can initiate early maintenance ensuring smooth operations. It can be enforced to automate building maintenance services, enabling engineers to track operations of machines like elevators, HVAC(Heating, ventilation, and air conditioning) systems and lighting equipment by capturing data like operating time, idle time, and maintenance cycle, among others.
Analytics, devices, and sensors record the pattern of operation and intimate the need of maintenance whenever due. Either in case of irregularity or in case of predictive maintenance. This can be interpreted as tangible benefits like operational cost reduction and intangible benefits like smooth operations.
- IoT is helping in making decisions faster
The booming Thai retail industry is seeking smart spaces to track the influx of customers. This will process clarity in the areas where customers spend the most time, which parts of the store get the highest footfall. A finer understanding of the operations will assist the retailer to make decisions regarding the design of the store as well as stocking of merchandise.
Manufacturers and warehouse operators are also excited about the concept of smart workspace, which will help them monitor the supply chain with a closer look into inventory levels, people and machine performance on the floor.
IoT could also impact individual home buyers with adapting beacon technology. Residential properties could now have beacons that are able to send push notifications to potential buyers.
In Thai Real Estate market IoT will be the way forward
The crunch of interoperability of devices is hindering businesses to tap the potential of IoT. To make interoperability a reality, there is a pre-requisite to integrate across various systems, devices, and vendors.
There always is a threat of infringing privacy due to user data, which may lead to resistance to introducing IoT solutions from tenants. Real Estate must strategize to reduce the risk with the right measures.
IoT will seek more in the real estate value chain and needs huge direct and indirect investments. The Real Estate industry will embed IoT, which will drive the way businesses will operate here on.