The future of Proptech: Key trends shaping the growth of proptech in Australia
The Proptech industry is booming, both locally and globally, with new innovations emerging rapidly. In Australia, the proptech industry grew from 381 companies in 2021 to 478 proptech products and companies in 2023, producing 1.4 billion of direct economic output. Key trends shaping the future of proptech in Australia include AI, fraud prevention and flexible payment options.
Spending in AI is increasing rapidly, with Australia and New Zealand increasing their spending in generative AI from US$60 million in 2023 to US$151 million in 2024. AI is projected to play a key role in smart contracts, big data and predictive analytics and improving project management in areas such as project selection, monitoring, progress, speeding up reporting, and facilitating testing.
Fraud prevention will continue to grow in importance. This is fuelled by the devastating effects of payment fraud, with Australians losing millions due to scams in the real estate sector. This mirrors broader payment fraud trends in Australia, which increased 35.6% in 2023. Account takeover fraud and payment redirection scams are the top issues plaguing proptechs.
Mark Healy, CEO at Novatti, observed the changes in the industry changes, saying: “The intersection of real estate and technology offers incredible opportunities, but it also demands a thoughtful approach to tackling new challenges. It’s encouraging to see the industry coming together to explore how we can all move forward safely and effectively.”
Flexible payment options are becoming a growing expectation of property renters and are becoming a key focus for proptechs involved with rent payments. This demand for payment flexibility is particularly strong amongst new migrants (737,000 of whom arrived in 2023), expats and international students. Usage of digital wallets is increasing, with Asian focused wallets such as Alipay and WeChat Pay enabling easier payments from tenants who require an easier way to pay with Chinese funds. These digital wallets also offer advanced security measures.
Read more about the future of proptech in the industry report Future of proptech: AI, fraud prevention and payment trends for proptech leaders by Novatti, an ASX listed payments provider and sponsor of Proptech Association Australia. Jason Turnbull, GM at payments, commented on the report: “As the proptech industry continues to expand, so do the challenges that come with it. The report dives into how AI, advanced payment solutions, and payment flexibility can provide the security and efficiency proptech companies need to scale. At Novatti, we believe in empowering our clients with the knowledge and tools to tackle these challenges confidently.”
Access the proptech industry report here.
