Home News What could blockchain do for Australia's housing market?

What could blockchain do for Australia's housing market?

Font size :

Blockchain, an emerging technology, is expected to change landscape of the housing market.

Change is coming to the housing market, and it could be brought about by the growing potential of blockchain technology. This is the view of the Australian Housing and Urban Research Institute (AHURI), which studied blockchain and its potential to change the housing market.

Blockchain has evolved from being a buzzword to becoming a driving force of the cryptocurrency boom in the financial sector. Now, the emerging technology is predicted to expand to other sectors such as real estate, where it could be an avenue for an increased efficiency.

According to AHURI's study, one of the most beneficial applications of the technology is the shift away from centralised data and coordination, removing the need for regulatory hurdles, intermediaries, and middlemen. This could be useful in areas like mortgage and shared ownership.

"While still at an early stage, it can be applied to housing functions such as title registration, co-ownership options (including in reverse mortgages), tenancy management and utility maintenance, to ensure data integrity. These may reduce the risks and costs of manual entry and expand the capacity of current record-keeping by linking up relevant datasets," the study said.

University of New South Wales' Christopher Pettit, the lead author of the report, said blockchain has the power to simplify processes from constructing, siting, and tenanting to selling and maintaining properties.

"This simplification may come through automated contracts; access to large databases of information that can predict changes in a geographical area; or tracking the housing careers of people receiving housing benefits," he said.

AHURI also noted that the said technology could result in the possibility of crowdfunding property developments. In turn, this would allow micro-investors to own "shares" in the development whilst giving them real-time information about their investment.

However, this could lead to inflated home prices, which could increase affordability issues for those who are planning to buy a whole property.

While the technology is still in its early phase, AHURI said there is still more work to be done in order to ascertain the impact of blockchain in the housing market.

To read the study, click here.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Banning commissions is the best option for brokers and borrowers, says industry figure Banning commissions is the best option for brokers and borrowers, says industry figure

A broker has written an open letter arguing that removing commissions will benefit the whole industry Read more

More Aussies to struggle with mortgage repayments: Moody's More Aussies to struggle with mortgage repayments: Moody's The ratings agency expects an increase in delinquencies over the next few months ... Read more

Will Labor’s negative gearing changes only worsen the housing downturn? Will Labor’s negative gearing changes only worsen the housing downturn? Rate cuts would cushion the impact of the changes, but prices are likely to fall further ... Read more

Borrowers turn to customer-owned banks for home loans Borrowers turn to customer-owned banks for home loans They are ditching the Big Four banks due to the controversies uncovered during the royal commission's queries ... Read more

More mortgage news and articles

Sponsored Links

Friday, Mar 22, 2019
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords