The real estate value of smart home in a softened property market

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A recent article in the Daily Telegraph has highlighted the real estate value of the smart home, with the news outlet noting “creating a ‘smart home’ is now the smartest way to stand out from the crowd in today’s softer real estate market”.

So, what’s involved in building or retrofitting a smart home, and which features do buyers seek?

Buyers see the value

According to the Daily Telegraph: “Switched on developers and vendors are plugging in to the growing trend for hi tech homes that can do everything from monitoring energy usage so power bills stay low, to keeping an artificial eye out for intruders”.

They note a recent Budget Direct Home Insurance survey showed 58.2 per cent of people either already own a smart home, or intend to buy one with 25 to 34 year olds leading the way in both categories.

“The same report also indicated that 55.9 per cent of respondents were “excited” about the future of smart technology in the home.”

Meanwhile, they cite US figures that indicate buyers will pay more for a home with smart capabilities.

“While there are no hard and fast facts based on the Australian real estate scene, US research shows smart homes are, on average, selling for 5 per cent more and having reduced time on market compared to “like” properties in the same market.”

Australian smart home growth

Research firm, Statista recently reported roughly a quarter (24.9 per cent) of Australian households feature some sort of smart home technology and that’s expected to increase to 41.9 per cent by 2023.

In real life figures, that means 2.3 million Australian homes have smart home technology, with the average revenue per installed household now at US$169.08. Revenue-wise, the Australian smart home industry is currently valued at US$1.278 billion, but is tipped to increase to US$2.44 billion by 2023.

Meanwhile, Australian firm Telsyte found the average Australian household had 17.1 connected devices in 2018, up from 13.7 in 2017 and this number is expected to grow to 37 by 2022 or 381 million Internet-connected devices nationally.  

Telsyte managing director Foad Fadaghi told the Daily Telegraph their research also indicated one of four Australians were willing to pay more for a smart home, compared to a non-smart home.

He noted in order to get an edge, property developers are making smart homes the new normal.

“For a consumer to not have that functionality in a brand new home, or building, would be disappointing. It’s something that most people expect; that ability to switch things on and off remotely is really the bare minimum,” he said, adding that energy-saving technology and security surveillance are also increasingly sought after.

Mr Fadaghi said owners of pre-existing real estate can also appeal to buyers looking for hi-tech homes by installing smart devices.

 “Retrofitting homes to make them both smarter and smart-ready has become increasingly important for vendors because of the competitive marketplace,” he said.

“If two houses are the same, but one has cabling to every room, has good Wi-Fi across the whole home, has existing smart cameras or the big ticket items like smart energy and solar, then those are the kinds of things that will attract buyers,” Mr Fadaghi said.

What buyers want

When it comes to what buyers want, security, convenience and the wow factor are among the main priorities.

At Lera, some of the major features our consumers include:

Lighting control – Which allows users to switch lights off or on via mobile phone, remote or voice control, and can also allow you to set scenes within your home.

Automated blinds – That allow users to close or open motorised roller blinds on command or when certain conditions are reached. They can be a real benefit for the security, ambient temperature and functionality of the home. 

Door intercoms  – Which offer a wealth of benefits, including the convenience they provide residents when they’re at home or away. Door intercoms residents to be alerted when someone is at the front door, they also allow them to see and speak with them to understand what the person requires.

Alarms and security cameras – These allow homeowners to consistently monitor their house for threats or danger, whether that’s a break-in, a water leak or a fire.

Sound systems – Automated sound systems enable occupants to command their favourite music to play in one, two or all areas of the home. The can even set-up sound systems to play different music in different areas.  

Voice activation – Which is currently one of the most sought-after features of the smart home, and it works to tie all the best smart home offerings together. Voice activation allows occupants to verbally command their home to undertake tasks, such as changing scenes, turning lights off or on, or activating entire sequences like morning routines or preparing the house for arrival.

Build or retrofit

Although smart technology is increasingly being built into new homes and developments, it can also be retrofitted into existing properties with ease.

At Lera Smart Home Solutions, we use simple technology that can transform any existing home into a smart home using the property’s existing wiring. This allows retrofitting to be undertaken quickly, affordably and effectively, often in as little as a few days or weeks, and without making any alterations to the property’s structure.

About Lera Smart Home Solutions

Lera Smart Home Solutions is a leading installer of smart home technology in the greater Sydney region. Our team boasts over 20 years’ experience in IT networking, programming and the electrical industry.

We have sourced the most reliable and cost efficient solutions from around the world to provide the very best in smart home solutions, and work with our clients to understand their needs.

You can learn more about transforming your house into a smart home here, or contact us directly for further advice.

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