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Australia Blockchain New Zealand Real Estate VeChain Western Australia

Australian Real Estate Body: Blockchain Will Revolutionise the Industry

A new report from the Real Estate Institute of Australia (REIA) confirms it is firmly in favour of blockchain adoption by the industry. The report outlines the various uses for blockchain in the sector as implementation methods become a hot topic.

Web3 Will Revolutionise Real Estate

The Blockchain: Opportunities and Disruptions for Real Estate report, released this week, details how the Aussie real estate industry can utilise blockchain tech to stay ahead of the game in an unstable market. The report is the result of a collaboration between REIA, REINZ (its New Zealand counterpart), and the RMIT (Royal Melbourne University of Technology) Innovation Hub.

REIA president Hayden Groves predicts that “fully integrated Web3 technology” will allow the industry to cope with rising interest rates, and housing affordability and supply issues. And according to Professor Jason Potts, co-director of RMIT University’s Blockchain Innovation Hub, blockchain has the potential to reshape customers’ experience into something far more positive:

https://rmitblockchain.io/jasonpotts

The time is right for Australia and New Zealand to become early adopters and in doing so provide more options for their customers such as tokenisation of real estate assets, which can lead to lower costs, increased liquidity, and therefore faster settlement times.

Professor Jason Potts, RMIT

However, Groves stresses that the research is only as good as the adoption, and that an implementation strategy is yet to be decided on. He wants “agents and agencies to be trusted members of their communities” with property transactions and blockchain offering the potential to “completely improve and grow trust in a real way”.

To learn more about how blockchain can function in the real estate industry, the video below is a useful starting point:

Sustainability and Training Also to the Fore

This is only the latest chapter of real estate’s exploration of blockchain in the industry. In September 2021 Jones Lang LaSalle Incorporated (JLL), a multinational commercial real estate company, made a deal with blockchain platform VeChain to promote more sustainable practices in the sector.

More recently, REIA Western Australia introduced ‘mandatory blockchain training’ for its real estate agencies. The May 2022 initiative sought to aid the industry’s adoption and evolution as crypto and blockchain progressed into the mainstream.

Categories
Australia Blockchain Crypto News DeFi Education Real Estate

Western Australia Real Estate Body Introduces Mandatory Blockchain Training

The Real Estate Institute of Western Australia (REIWA) is set to introduce mandatory blockchain training to WA real estate agents in an Australian-first move designed to help the sector adapt and evolve as cryptocurrency becomes more mainstream.

This week's property round-up | Business News https://www.businessnews.com.au/article/This-weeks-property-round-up-77
Real Estate Institute of WA (REIWA) to offer mandatory blockchain training.

Real Estate to Adopt Tokenisation and Smart Contracts

This training will allow the industry to broaden its service offerings and utilise blockchain applications such as tokenisation and smart contracts. Partnering with Perth-based blockchain consulting firm TecStack for the delivery of the training, REIWA will educate its industry on how crypto can affect sellers, buyers, tenants and property managers.

TecStack’s director, Abheeti Pass, has described crypto as “fast-moving technology”, noting that the first to adapt are most likely to have the best chance to capitalise on growth opportunities in the field:

https://www.startupgrind.com/events/details/startup-grind-florence-presents-la-tecnologia-blockchain-e-limpatto-sulla-formazione-reinventing-the-future-w-tecstack/

We are seeing whole new DeFi markets and technology-enhanced property online services opening up, and it is vitally important that today’s real estate professionals know how to understand and cater to these emerging customers’ needs so they can build ongoing relationships based on trust and expertise.

Abheeti Pass, director, TecStack

With an influx of DeFi newcomers in the market who are not using traditional finance methods, there is an opportunity for real estate agents to take on new types of clients.

Crypto Pops in on Property

The real estate sector has been moving slowly but steadily in its adoption of crypto, with increments of progress such as this one cropping up across the globe. September 2021 saw multinational commercial real estate company Jones Lang LaSalle Incorporated (JLL) make a deal with blockchain platform VeChain in a push to promote sustainable practices in the sector.

And January 2022 was a big month for blockchain tech in real estate as Propy, the real estate smart token, shot up by 227 percent following its Coinbase listing. Propy is one of the leaders in buying and selling homes via smart contracts.

In other related news, US fintech company Milo is now offering its customers zero deposit, Bitcoin-backed real estate loans. This is a world-first bitcoin mortgage offering, yet it will only be usable for US property.

Categories
Crypto News NFTs Real Estate

Florida House to be Sold as an NFT at Auction

History is about to be made in Florida as a piece of US real estate goes to auction as a non-fungible token for the first time. The property rights will be minted into a token and transferred via blockchain by real estate technology company Propy.

Bidders in Their Thousands Already Lined Up

No 6315 11th Avenue, a modern Spanish-inspired estate in the city of Gulfport, is expected to go to auction on February 10. Initially set for February 8, the auction has been delayed slightly due to immense public interest as 2,000 bidders queue to participate.

Blockchain start-up Propy will host the auction via its online platform, with Ethereum the cryptocurrency of choice. From a US$650,000 starting price, the conclusion of bidding will see one lucky buyer receive the property deed in the form of an NFT. While this transaction will not be a global first – the first NFT property sale was an apartment in Kiev, Ukraine last year – it will be an American first.

The current owner of the Gulfport home, Leslie Alessandra, is a local real estate investor and founder of DeFi Unlimited, a Tampa Bay blockchain company. Alessandra hopes that the auction of her home will stimulate conversation surrounding the potential of NFTs.

https://www.baynews9.com/fl/tampa/news/2022/02/05/gulfport-home-nft-sale-------?web=1&wdLOR=cFB8A1BEC-5FC9-42FA-8F1A-7961743D20E6

We’ve seen what NFTs and crypto does for the art community … Now we’re demonstrating what it can do for the real estate community.

Leslie Alessandra [Bay News 9/Twitter]

This real-world application of NFT and blockchain technology allows the buyer security and anonymity. Alessandra hopes the future new owner will be another NFT enthusiast. However, she acknowledges that market trends are volatile and sharp fluctuations may impact the future performance of the home in the crypto market.

Is Australia Set to Follow Suit?

Real estate-backed NFTs have been slow to gain traction in Australia. However, crypto property transactions have taken place across the country. Sydney, in particular, has seen multiple bitcoin transactions in its property market.

Although we are yet to see any Australian property deeds minted into NFTs, this could change in coming years – pending the outcome of this week’s Gulfport auction.

Broadening Horizons of NFTs

NFTs are moving beyond the realm of mere digital art collectibles into several increasingly varied industries. Worldwide interest in real estate-backed NFTs is taking off, with Propy’s smart contract token excelling since its Coinbase listing in January 2022.

Chinese tech giant Alibaba’s e-commerce platform Taobao has unveiled a digital collection of NFT houses. The backing of this artistic collection serves to demonstrate the willingness of large companies to embrace NFT technology. And, with music festivals such as Coachella and a number of sports teams seizing the opportunities NFT technology provides, it’s likely the technology will keep on adapting.

By Lauren Claxton, Crypto News Guest Author