Australian proptech companies are generating over $1.4 billion of direct economic output and supporting more than 5700 jobs each year, according to a new industry report.
Published by Proptech BNE – in partnership with the Office of the Queensland Chief Entrepreneur, Brisbane Economic Development Agency, Proptech Association Australia, Ezypay and Deliotte – the 2023 Australian Proptech Economic Impact Report represents data collected from Australian founders over eight weeks ending February 2023.
It is the third consecutive year the report has been published, providing an annual benchmark for the economic performance of this growing technology sector. In 2023, the report collected data from more than 200 proptech companies across Australia to create these benchmarks.
Proptech BNE founder Isaac Coonan said there was no doubt that proptech as a technology cluster had been on a rapid uplift over the past decade, with an increased number of startups, accelerators, government programs and funding vehicles launching nationwide.
“To understand the economic impact of the Australian proptech industry, it was important to use employment and job creation as one of the key metrics,” Mr Coonan said.
“The Australian proptech economy currently supports over 5700 jobs nationally, with 1149 of those created in the 2022 calendar year.
“Over 90% of these jobs were created and supported by companies registered in Queensland, New South Wales or Victoria.
“An interesting observation is that while Queensland produces the highest number of proptech companies each year – followed by New South Wales and Victoria – Victoria is the largest contributor of economic output to the Australian economy.
“This is due in part to the number of larger, established proptech companies such as PEXA being headquartered in Victoria. However, the data suggests that this trend may change, as in 2022 Victoria reported 294 new jobs while Queensland and New South Wales each reported more than 350.”
The report also revealed that 61.2% of Australian proptechs export their products to one or more global regions. The US topped the list of international consumers at 20%, followed by the UK at 18%, with New Zealand (14%), Greater Europe (12%) and the Middle East (10%) rounding out the Top 5.
“When examining the level of interest for international expansion, 54% of Australian proptech survey respondents indicated that initial or further international expansion was a priority for their business during the next 12 months,” Mr Coonan said.
“This trend is not new, with 2021 and 2022 reports both indicating that more than 50% of respondents were eager to scale their business offshore.”
Gender diversity was also captured in the survey, with the report revealing that the industry’s total proptech founder gender split was 79.3% male and 19.5% female (1.2% of respondents preferred not to say).
This was an uplift on the 16.7% of female founders in the 2022 report and 17.4% in 2021.
In addition, the latest figures revealed further growth. Of the proptech companies founded in the past 12 months, 21.5% were female driven.
Mr Coonan said it was essential to champion a diverse cohort of founders to ensure that a broad range of perspectives, ideas and experience was represented, leading to a more innovative and effective technology cluster.
Diversity data was also collected on founders who identified as persons of colour, 2.7%; Indigenous, less than 1%; LGBTQ+, 6.2% and persons with different ability, less than 1%.
“As with gender diversity, diversity as a whole needs to be a focus when looking at the support systems in place to grow the Australian proptech economy,” Mr Coonan said.
“Digital and technological solutions being developed by this growing cluster serve a myriad of users, and the differing perspectives of founders coming from diverse backgrounds means that solutions for the future can service a broader, more inclusive market.”
Proptech Association Australia founder Kylie Davis said the annual report had become an important indicator of the industry’s continued growth and increasing impact on the Australian economy.
“Proptech BNE has now provided the industry with three years of valuable insight and data metrics on proptech performance within the local marketplace,” Ms Davis said.
Download the 2023 Australian Proptech Economic Impact Report for more information on the survey and the data that was collected.
