[Untact, Changing Homes] Replacing Footwork with 'Handwork'... The Era of Cyber Model Houses Begins

Online Model Homes Accelerated by COVID-19
Real Estate Transactions Also Adopt VR Services

Screenshot of The Sharp Songdo Ark Bay cyber model house screen sold in April (Source: Homepage capture)

[Asia Economy Reporter Ryu Tae-min] #. Office worker Park Seong-hoon (45, pseudonym) is currently busy preparing to buy his own home after a long period of living in rented housing. Although he is about to apply for an apartment subscription soon, instead of visiting the model houses of apartment complexes being sold around the same time, Mr. Kim chose to look at computer screens from his room. The reason is the cyber model house. Cyber model houses are created by filming actual homes with 360-degree cameras and rendering them as virtual reality (VR) videos. Through this, one can examine not only 3D floor plans but also every detail of the finishing materials in each room, balcony, and bathroom. Mr. Park said, "Traditional model houses are often located far from home, and because they are crowded, it was difficult to look around as long as I wanted. The recently introduced cyber model houses are as vivid as the real thing and safer from COVID-19, so they are actually more convenient than visiting in person."

The Sales Market Changed by COVID-19... Online Model Houses Emerging as the ‘Mainstream’

The real estate market, where ‘footwork’ was important, is shifting mainly online due to the spread of COVID-19. In the sales market, many apartment complexes have replaced offline model houses entirely with cyber model houses, and people are flocking to online subscription applications. This is a stark contrast to the previous scene where the success of sales was gauged by the crowds visiting offline model houses. Even places that have opened physical model houses generally operate on a reservation basis with minimal scale.

As online real estate tours become mainstream, more construction companies have started using YouTube. GS Construction and Hyundai Construction have been conducting YouTube live broadcasts since last year, where real estate experts tour physical model houses and answer viewers’ questions in real time. They have also provided real-time consultations via Facebook and KakaoTalk channels. A real estate industry official said, "We had no choice but to start online real estate tour services due to the spread of COVID-19, but they have become popular among consumers and are emerging as mainstream culture. Compared to physical model houses that must be built and demolished every two or three months, costs are reduced, so construction companies also welcome this trend."

Zigbang VR Home Tour Service Usage Screen (Source=Homepage Capture)

Real Estate Transactions Also Changing... Selling ‘Handwork’ Instead of ‘Footwork’

With the introduction of virtual reality (VR) real estate services in sales and lease transactions, cases of ‘handwork’?searching online?are increasing, and real estate information platforms are competing to enhance their information services. Currently, Zigbang is focusing on diversified information provision such as 3D complex tours and viewing population density through big data. When selecting a specific floor and unit of an apartment complex of interest, it shows the outside view visible from the actual window. It allows users to check whether the view is blocked by buildings or if mountains or rivers are visible. It also simulates how sunlight changes by season and time of day. This means that even without visiting the unit in person, one can check the apartment’s view.

Dabang plans to launch VR room tours, video home tours, and electronic contract services next month. Users can indirectly experience properties online by watching VR 360-degree videos on PC or mobile, similar to booking a hotel easily online. Additionally, with the introduction of electronic contract services, contracts can be processed via mobile without visiting the property site. Dabang explained, "In line with the spread of non-face-to-face culture, we plan to provide services that allow contracts to be completed without visiting the site."

Consumers Welcome Online Services... Helpful for Decision-Making

Recently, more people are using online services when trading real estate. According to a survey by real estate platform Zigbang, 89.8% of respondents said they would be willing to use VR-type real estate brokerage services. Furthermore, 94.8% of respondents said that using VR-type real estate brokerage services to view homes online helps with decision-making.

The biggest reason cited was "being able to check without visiting the offline site (42.8%)," followed by "being able to check the view, sunlight, floor plan, etc., by moving around directly (20.9%)," "being able to check like the real thing before completion (18.5%)," and "being able to check without time constraints (7.7%)." A Zigbang official said, "Online real estate brokerage services are popular because many people avoid visiting sites due to COVID-19 and can check properties anytime and anywhere. Real estate information services are expected to continue developing in the future."