The number of high-rise condos have mushroomed in Malaysia property landscape. It has not only set the tone at the national policy level, but also contributed to the need for Smart Condo features.
Rising number of companies appear to customize smart products like smart locks and access for the high-rise market. It’s help to upgrade traditional condo to smart condo.
The appearance of more Smart Condos and smart appliances are generally targeted at young urban white-collar workers and are preferred by the community for their living environment, residential atmosphere and convenient living experience.
Many well-known high-rise condo generally have aesthetic designs and boutique concepts. Interior designs adapts to the younger market preference for flavour and trendiness.
This change in consumer behaviour and market demand display a big market gap to traditional landlords and condos. The need to first enhance the visual beauty in a new property, proves that basic furnitures and renovations alone, are not sufficient to attract tenants.
More than that, it indicates the need and crave by consumers for more values in their lifestyle.
Smart feature comes with smart locks, smart access, smart utilities, systematic rental process, smart visitor management systems, all eliminating the need for physical key, meter reading, billing problem and etc.
With smart technology, service subscription, payment, service request (cleaning, equipment maintenance, etc.), renewal, leaseback, refund, and the entire rental process can be implemented in one app. Great efficiency is enhanced for both tenants, landlord and management.
The concept of a smart condo is to provide value to residents based on people-oriented technologies. Examples are smart device acquisition, automation capabilities, the Internet of Things (ioT), and data integration services to the operation of the IT management system. All functions in a service flow can be achieved without human intervention (opening, using, playing, closing, etc.).
The concept of a smart condo is people-oriented, offering all the living scenarios it can offer. At current stage in Malaysia, there is no essential difference between a smart condo and a smart home. Early adopters in the Smart Home industry will continue to explore the market gap and potentials to determine more smart life services and relevant hardware models.
First of all, current source of income of high-rise condo is still mainly contributed by rental income. However, the property price increase rate far exceeds the growth rate of rents.
From a profit-making perspective, high-rise condo owners are motivated to explore alternative source of revenue other than traditional rental.
Secondly, tenanted condos already possess the economic resources to fund the operations and services of a condo, i.e. rental proceeds.
In general, property rent accounts for about a third of the tenant’s income, which is a huge portion in the nations GDP. This is a huge market to exploit for more value-added services in a home.
The most valuable resource for high-rise condo welfare, is the tenant, while having the natural ability to manage operations. The pursuit of operational efficiency and service quality makes it easy for smart products to reach the condo.
Besides, the acceptance level of smart products by the 80’s, 90’s mainstream renters is high. Smart home services will promote the exploration and maturity in the high rise market. It enables younger generation to experience the benefits of Internet of Things (ioT) and create awareness, which in return becomes ambassadors to a new wave of consumers for the smart home industry.
High-rise condo will be a huge stepping stone for the smart home industry in future. Properties with community facilities and common structures offers the economy of scale for Smart Home applications.
Besides, higher rental yield of high rise properties (compared to landed properties and non-Smart Home properties) will play a major drive to the market demand, hence the transformation to Smart Homes.