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China’s US$2.3 trillion property sector tries out VR amid coronavirus scare, online food deliveries, health care set for long-term boost

  • VR is unlikely to become a long-term trend, but online health care services could
  • Online food delivery services experience unprecedented bounce in demand

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A face mask wearing food delivery rider in Beijing. With people staying indoors during the coronavirus outbreak, companies across a range of sectors are trying new ways to reach their customers. Photo: AFP
Louise Moon,Ryan Swift,Iris OuyangandEric Ng

How do you keep a 15.97 trillion yuan (US$2.3 trillion) industry ticking in the middle of an outbreak that has got 46 million people on lockdown?

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Mainland Chinese property dealers – banned from opening their sales offices in at least 60 jurisdictions amid an outbreak that has claimed 425 lives and infected more than 20,000 people – are turning to virtual reality (VR) technology as well as social-media platforms such as WeChat, in addition to websites, to sell homes.
Last week, companies including Hong Kong-listed mainland Chinese property developer and integrated living services provider Greentown China Holdings and Beijing-based China Fortune Land Development launched WeChat mini programs that will let their customers undertake VR tours of properties for sale. LeJu, a New-York listed, Chinese real-estate services platform has created a section for virtual tours following the outbreak. It already offers free hotlines and WeChat groups for buyers.

But even if VR – a new buying method unavailable during the Sars (severe acute respiratory syndrome) outbreak in 2003 – might attract some potential homeowners, it is unlikely to become a long-term trend, analysts said.

“It is not a problem that can be solved by companies adopting creative sales and marketing measures,” said Zhang Dawei, chief analyst at Centaline Property. “People still want to view flats on-site … an online visit is only supplementary.”

While property companies have their work cut out, sectors such as online health care consultation might actually become more mainstream. Food delivery services too will reap the benefits as the masses stay at home.

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