Real Estate Insights Is tokenization of real estate ready for lift off in APAC?

Yuen Leng Chow and Kok Keong Tan

Journal of Property Investment & Finance, 2021, vol. 40, issue 3, 284-290

Abstract: Purpose - Blockchain and distributed ledger technologies are set to disrupt the real estate sector in all areas: ownership, sale, management and investment. Tokenization moves physical real estate to the digital space and could result in substantial cost savings in the pre- and post-tokenization process. This article discusses whether real estate as an asset class is ready for digitalization in the Asia-Pacific (APAC) region. Design/methodology/approach - Globally, the APAC region has the highest digital adaptation/adoption rates. Regulators in the region are also moving fast to clarify their stance on digital assets. This article adopts a holistic view, from trends, regulations, and technology, to discuss the benefits and challenges of digitalizing real estate in APAC. Findings - Real estate tokenization is a nascent market but platforms like BrickX, KASA, ADDX, and Minterest have successfully launched real estate tokens in Australia, South Korea, and Singapore, respectively. Tokenization may prove to be a viable funding source for those relatively poorly capitalized financial markets in the APAC region. Practical implications - This paper discusses the current regulatory and business contexts in relation to the pace of tokenization of real estate in APAC. Opportunities and difficulties are outlined in a concise manner to facilitate more discussion in this area. Originality/value - Existing reports and research articles tend to focus on the western markets. This article provides a new perspective on tokenization, specifically in the APAC context.

Keywords: Tokenization; Blockchain; Distributed ledger; APAC (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:jpif-10-2021-0087

DOI: 10.1108/JPIF-10-2021-0087

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