Unleashing Potential: Exploring the PropTech VC Investment Market

The Hong Kong PropTech Association (HKPTA), in collaboration with Preqin as its data partner, is proud to release its latest market digest titled “Unleashing Potential: Exploring the PropTech VC Investment Market”. The summary and full report is per below.

The global PropTech venture financing market is a resilient one. Despite its relative underperformance compared to average venture financing amidst the recent economic downturn, the difference has been diminishing as startups started to offer remote property management and sales and rental services. After all, the PropTech industry had consistently been a market leader before recent headwinds and had increasingly been dominated by large deals.

The APAC market is even more resilient due to its sophisticated built environments and adaptability to innovation and has been long led by China and India. Despite the gross impact exerted by the Chinese property sector crisis in 2021, the APAC market has been sustained by small deals attributed to rising interest in companies from Japan, South Korea, Singapore and Australia. Unfortunately, the global and Asian trends received a lukewarm response by Hong Kong, where the city’s previously sluggish technology development had led to disinterest from investors.

The enthusiasm in the global PropTech fundraising market was even greater before recent headwinds with larger funds closed; the boiling interest has however come to a pause in 2022 with possible dry powder accumulated. Meanwhile, contrary to that of venture financing, the APAC market performed weaker than the global market, suggesting milder interest from APAC investors which may have been curbed by regional events such as the Chinese government’s curb of property speculation and stringent Covid lockdowns.

The report provides a more in-depth analysis of the trends mentioned and presents top PropTech deals and case studies. HKPTA’s market research aims to provide due diligence to create a collaborative ecosystem that brings together property developers, investors, and emerging PropTech startups.

Unleashing Potential: Exploring the PropTech VC Investment Market

Global PropTech deals grew faster and larger than total VC deals despite market headwinds in 2020 and 2022.