Openn Negotiations locks in giant PropTech alliance as ANZ, North American markets seek new direction
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As the Australian residential property market undergoes its first structural shift in more than a decade, the cutting edge property-tech firm, Openn Negotiation, says its focus on next stage partner integrations is moving quickly to plan.
In a release to the market on Friday, Openn Negotiation (ASX:OPN) says the Commercial
Collaboration Agreement with the property focused payments group Realty Assist Australia will reap broad cross-marketing opportunities across the two firms’ combined network of real estate agents.
The announcement follows on from OPN’s ‘go to market’ strategy with the platform building enhancements and alliances with consumer, broker, and agents seeking to move on from legacy property market processes.
With global property markets facing the new paradigm of rising rates, OPN says the potential commercial deliverables are substantial – for both parties – while the deeper reach brings tangible benefits to both buyers and sellers as well as the agents who support them during a shifting Australian residential property market.
Itself a fast-growing prop-tech business, Realty Assist facilitates efficient settlement of agents’ commissions and vendor paid advertising costs.
The underwriting of these payments and fees substantially reduces financial risk – taking a load from agent’s shoulders – and has been a key engine behind Realty Assist’s rapid market growth.
Openn itself has been listed since July last year, but as the brainchild of a property investment banker and top Aussie real estate agents, the forward-focused specialist has evolved into something of a revolutionary sales platform, facilitating real-time negotiation of property sales.
Openn Negotiation does what the name says, and in doing so has solved the single biggest problem facing a fast-shifting real estate market – a lack of transparency in the sales process and pricing.
The company’s novel proprietary software has already seen rapid adoption in the Australian and New Zealand (ANZ) property markets with well over $5B worth of sales transacted since 2016.
Openn managing director Peter Gibbons says the synergies are huge.
“As two of the fastest growing PropTech businesses in the Australian and New Zealand markets, it makes perfect sense for Openn and Realty Assist to join forces for this powerful collaboration,” he said.
“Both groups help to improve the experiences of buyers, sellers and agents in property transactions in different ways and this collaboration allows us to help each other grow market share, offering real-estate agents a proprietary cloud-based software platform, fast-tracking online property sales with the essential transparency they need.
“We’re always excited to partner with ‘best-of-breed’ technology groups and see Realty Assist as a great brand for Openn to work alongside for mutual benefit.”
Gibbons says Openn will integrate Realty Assist into Openn’s software where the two parties’ combined market sales information will provide future commercial data analytics opportunities.
Specifically, Realty Assist’s access to vendor information complements Openn’s deep understanding of buyer behaviour and provides an aggregated database of substantial value to enterprises wishing to understand, and leverage vendor and buyer activity.
He says Openn remains focused on hitting 5% market share for all residential property transactions in the Australian market by June 2024.
Achieving this level of penetration will generate an in-depth statistical set of data which can create multiple revenue streams.
The Realty Assist collaboration signals a broader intent for Openn to partner with other complementary third party prop-tech groups and will assist with Openn’s ambition to develop deeper data sets for future monetisation.
Openn intend to address a significant unmet need in a changing landscape to provide valuable data for the ANZ property sector.
Additionally, the company is making substantive inroads into the lucrative North American PropTech market and currently has several material pilot programs underway with Multiple Listing Service groups in the USA and Canada.
This article was developed in collaboration with Openn Negotiations, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.