ABSTRACT
Currently, in the domestic construction market, several companies are actively investing in the proptech sector to develop real estate development and high-tech technology, and the domestic proptech sector is continuously growing. However, the construction market is still dominated by sales projects that rely on short-term finance, and there is a lack of discussion between the government and companies on ways to improve productivity. In addition, productivity improvement, operation, and management are vulnerable due to reckless investment focused only on profitability of small companies, and there are significant differences in productivity, operational efficiency, and size among domestic companies. This study aims to study the operational status and productivity improvement measures of domestic proptech construction companies. Therefore, among domestic construction companies, construction companies belonging to the Korea PropTech Forum were selected as analysis targets and an analysis of corporate productivity was conducted. As an analysis method, the Malmquist productivity index analysis, which can analyze changes in productivity and efficiency over a specific period through various outputs, was used. As variables used in the analysis, capital and number of employees was derived from input factors, assets, operating income, and net income were derived from output factors. Through the Mamquist productivity index analysis, trend analysis was conducted according to time point changes, and the degree of change in productivity between different time points was compared and analyzed. Results show that productivity improved due to the overall increase in MPI by year, but the index of flows such as MPI during the entire period was different by period. This means that the factors affecting productivity improvement have changed by period, sensitively reacting to external factors such as the construction industry or the COVID-19 situation. This study is significant because it identifies changes in the productivity index of proptech construction companies and suggests efficient operation of companies and ways to improve productivity. © 2023, Success Culture Press. All rights reserved.
ABSTRACT
Real estate markets are complex both in terms of structure and dynamics: they are both influenced by and influence almost all aspects of the economy and are equally vulnerable to the shocks experienced by the broader economy. Therefore, understanding the extent and nature of the impact of large-scale disruptive events such as natural disasters and economic financial downturns on the real estate market is crucial to policy makers and market stakeholders. In addition to anticipating and preparing for long-term effects, it has become imperative for stakeholders to monitor and manage the short-term effects as well due to the emergence of 'PropTech' and 'platform real estate'. In this work, we explore the use of online, real-time dashboards which have been used extensively in the context of urban management, policymaking, citizen engagement and disaster response as an appropriate tool for the purpose of monitoring real estate markets. We describe the process of designing, building, and maintaining an operational dashboard for monitoring the residential real estate market in Australia during the COVID-19 pandemic in 2020. We detail the techniques and methods used in creating the dashboard and critically evaluate their feasibility and usefulness. Finally, we identify the major challenges in the process, such as the spatial and temporal availability and veracity of the real estate market data, and we identify possible avenues for consistent, high-quality data; methodology; and outputs for further research.
ABSTRACT
Purpose>Volatility, Uncertainty, Complexity and Ambiguity (VUCA) are terms the military have coined to describe the environment they often operate in. This paper examines how this decision-making framework can be used to better inform real estate investment and development. In celebration of this journal's 40th anniversary, we also explore how VUCA can be related to and expand on the teachings of Dr. James A. Graaskamp who published his seminal piece on the Fundamentals of Real Estate Development (1981) the same year. In that piece, he highlights the importance of paying attention to the human factor, the consumers of real estate.Design/methodology/approach>This is a thought piece on an alternative decision-making framework that can help capture the dynamic environment that commercial real estate investors and developers are currently working in. VUCA captures the difficulty of predicting the future in a world of accelerating, unpredictable change. This is particularly important in today's rapidly changing world caused not only by the current COVID-19 pandemic but also the exponential growth of the proptech industry as well as the increasing risks and opportunities associated with climate change that continues to impact the built environment.Findings>This is not a traditional research project with empirical findings. We are presenting an alternative framework for thinking about making investment decisions in these current volatile, uncertain, complex and ambiguous times today and in the future. In addition, the importance of multidisciplinary training and the human factor are stressed.Research limitations/implications>There are no limitations to this research as it is the ideas of the authors. Implications are to help real estate investors, developers and educators better understand the environment that they are working in.Practical implications>VUCA captures better the dynamic nature of real estate investments compared to traditional analysis. It helps one better analyze the risks and returns but also to acknowledge that there is a lot you cannot predict and there are many exogenous variables that can, at times, completely change the rules of the game. Flexibility and adaptability are essential tools for working in a VUCA environment. In addition, the human factor plays an increasingly important role and real estate investors and developers that clearly understand this and focus on the consumer will likely be more successful.Originality/value>We believe that this is the first time that VUCA has been used in the real estate academic literature.
ABSTRACT
Purpose Volatility, Uncertainty, Complexity and Ambiguity (VUCA) are terms the military have coined to describe the environment they often operate in. This paper examines how this decision-making framework can be used to better inform real estate investment and development. In celebration of this journal's 40th anniversary, we also explore how VUCA can be related to and expand on the teachings of Dr. James A. Graaskamp who published his seminal piece on the Fundamentals of Real Estate Development (1981) the same year. In that piece, he highlights the importance of paying attention to the human factor, the consumers of real estate. Design/methodology/approach This is a thought piece on an alternative decision-making framework that can help capture the dynamic environment that commercial real estate investors and developers are currently working in. VUCA captures the difficulty of predicting the future in a world of accelerating, unpredictable change. This is particularly important in today's rapidly changing world caused not only by the current COVID-19 pandemic but also the exponential growth of the proptech industry as well as the increasing risks and opportunities associated with climate change that continues to impact the built environment. Findings This is not a traditional research project with empirical findings. We are presenting an alternative framework for thinking about making investment decisions in these current volatile, uncertain, complex and ambiguous times today and in the future. In addition, the importance of multidisciplinary training and the human factor are stressed. Research limitations/implications There are no limitations to this research as it is the ideas of the authors. Implications are to help real estate investors, developers and educators better understand the environment that they are working in. Practical implications VUCA captures better the dynamic nature of real estate investments compared to traditional analysis. It helps one better analyze the risks and returns but also to acknowledge that there is a lot you cannot predict and there are many exogenous variables that can, at times, completely change the rules of the game. Flexibility and adaptability are essential tools for working in a VUCA environment. In addition, the human factor plays an increasingly important role and real estate investors and developers that clearly understand this and focus on the consumer will likely be more successful. Originality/value We believe that this is the first time that VUCA has been used in the real estate academic literature.