Appraiser Directly Enters PropTech Market... Industry 'Stirred'

Taepyeongyang Appraisal Corporation Enters PropTech Industry for the First Time
Launches Real Estate Estimated Price Web Service
Attention on Whether It Will Change the Existing Conflict Between Appraisers and IT Companies

Appearance of the Landvisor service screen
Photo by Taepyeongyang Appraisal Corporation

[Asia Economy Reporter Ryu Tae-min] The frontline appraisal firms are directly entering the Proptech market, causing a stir in the related industry. Until now, general Proptech companies have sought to enter the appraisal market, leading to conflicts with the industry, but this time appraisal firms themselves are entering the Proptech market.

According to the industry on the 15th, Taepyeongyang Appraisal Corporation launched the web service "Landvisor," which allows users to check the market prices of all real estate nationwide online. This is the first time an appraisal firm has developed and provided a web service directly. Taepyeongyang Appraisal Corporation is a large appraisal firm with over 200 appraisers across 15 branches nationwide.

Landvisor is a service that provides estimated real estate prices by utilizing not only annual actual transaction data but also desk appraisal information produced independently by the appraisal firm. The service covers all real estate nationwide, including less frequently traded non-urban areas, which is a distinctive feature.

Online price estimation services have been a competitive field among several Proptech companies such as BigValue (Robic), GonggamLab (HouseMuch), 4th Revolution (ValueShopping), LandBook, NajipsaLab, and Space Value since 2016. Existing appraisers have strongly opposed these Proptech companies, claiming they conduct appraisal-like activities without going through certified appraisers.

In fact, the Korea Association of Property Appraisers filed a complaint in May last year against the real estate big data company BigValue for its villa price automatic estimation service, alleging a violation of the "Act on Appraisal and Appraisers." In response, BigValue argued that the service was selected as an innovative financial service through the financial regulatory sandbox and received a legal interpretation from the Ministry of Land, Infrastructure and Transport confirming no legal issues. The matter was settled when the police dismissed the case without indictment in May. However, the Appraisers Association is reportedly considering additional legal actions. BigValue’s service automatically estimates villa prices, which are difficult to assess, using artificial intelligence (AI) and big data technology.

Amid escalating social conflicts between existing appraisers and Proptech companies like BigValue, there is growing interest in what changes the participation of appraisal firms in the Proptech market will bring to the entire industry. Appraiser Oh Seong-beom said, “Instead of resisting the trends of IT services and digitalization, it is necessary for appraisers with expertise to directly enter the market to enhance competitiveness,” adding, “The goal is to grow the entire market by providing better services to consumers through competition.”

This content was produced with the assistance of AI translation services.