Main menu

Pages

Virtual reality can change the game

Virtual reality has the potential to change the game when it comes to marketing and selling homes, according to a study by researchers at the University of Auckland.

Tuesday, October 18, 2022, 7:00 AM

Properties that offer virtual reality tours attract 72.3% of prospective buyers to field surveys compared to properties that don’t offer virtual reality tours, says business school researcher Deborah Levy Professor and Dr. William Cheung, along with co-author Chuyi, said: Xiong and Michael Allen used data from China’s largest real estate broker.

“The use of virtual reality in real estate marketing encourages buyers to physically inspect properties, shortens the time a property is on the market, improves information transparency, and reduces the difference between a property’s asking price and transaction price. We found that it shrinks,” said Dr. Cheung.

Survey data includes home sales in 14 districts of Wuhan. In total, over 4,000 housing transactions were analyzed. Transaction data includes characteristics of each property and whether virtual reality (VR) is incorporated into the marketing of the property.

Additionally, the dataset includes detailed social media interactions for each property, such as follower counts and viewer counts.

This kind of social interaction information displayed on property listing pages, especially the number of followers a property has, can also help increase physical visits, and research shows that a 1% increase in followers increases the number of potential buyers who visit. Houses will increase by 21%.

On the other hand, using virtual reality for property listings reduces time on the market by 6.41%. It can also increase market transparency and reduce the price gap between bid and ask by 2%.

Levy and Cheung believe New Zealand will soon catch up with overseas players using virtual reality to market their properties.

“We can all benefit from this technology,” says Levy. “It’s efficient. You can sit in front of your computer and chat from the comfort of your own home, so there’s something fun about it, but before you actually go and spend it, you’ll want to get a feel for the real life of the property.” You can enjoy more time and money by looking directly at it.

“I think virtual reality will be commonly used here, just like you see properties in China.

Cheung said virtual home tours are a relatively inexpensive endeavor for potential buyers, with affordable headsets starting at around $30 for use with smartphones.

Of course, investment in real estate companies looking to offer VR experiences in New Zealand will be more expensive, Cheung said.

“I have done many VR tours of apartments in China.These 3D virtual tours are sophisticated and provide a high quality experience of the property.

“This technology makes it easier for many people to find their dream home.”

Tag: VR

Comments from readers

No comments yet

login To add a comment

Comments