Property Exchange Australia Ltd - PEXA Projects
Company: Property Exchange Australia Ltd, Melbourne, VIC, Australia
Company Division/Group: PEXA Ltd
Company Description: PEXA is the world's first online property exchange platform allowing property transactions such as refinancing, caveats and transfers to be completed electronically. With interfaces into five jurisdictional Land Titles Offices and more that 115 financial institutions and 4000 legal firms customers, PEXA has revolutionised the way property is transacted in Australia.
Nomination Category: Products & Product Management Categories
Nomination Sub Category: Best New Product or Service of the Year - Software - Real Estate or Construction Management Solution
Nomination Title: PEXA Projects - using robotics to help property developers settle large-scale developments simultaneously
Tell the story about this nominated product or service (up to 650 words). Describe its function, features, benefits, and performance to date.
With value exceeding $6.7 trillion dollars, residential property remains Australia’s largest asset class, yet until recently, properties were required to be exchanged and settled manually.
PEXA turned this on its head, introducing the world’s first electronic property exchange platform.
PEXA minimises the manual processes and paperwork associated with property settlements by enabling relevant to transact property together online for the very first time. This includes instant lodgement with the relevant land registry and the simultaneous exchange of funds, providing real-time access of funds for the seller, ownership immediately registered on title for the purchaser and removal of the requirement for financial institutions and lawyers/conveyancers to physically attend settlement.
But what does that mean for large-scale multi-lot developments?
Just this year, PEXA launched its much heralded ‘Projects’ functionality for property developers which uses robotics to automatically create online workspaces with mass data upload capability.
What once took 7 minutes per transaction now takes only 6 seconds. As you can imagine, for those property developers settling some of the 210,000 large-scale allotment deals each year, this provides an unprecedented level of efficiency. In fact, not only are dealings now 166x faster but developers also benefit from substantial interest savings with billions of dollars in property transferred in minutes – not weeks.
Roslynne Brodie, Legal Department Manager for Pace Developmnt – one of Australia’s premiere developers – said “The current way of meeting at settlement rooms is a disaster and antiquated. Property settlements fall over for the simplest of reasons caused by manual errors. I’ve seen a case where an elderly couple couldn’t move into their home because the transaction pulled up $100 short. Parting with a lifetime of savings is stressful enough! Going online means that we obtain a project wide view and status snapshot of the participation of all parties to the transaction. Plus we’re no longer plugging away for hours with the tedious and time-consuming task of manually entering data. By signing multiple deals electronically we dramatically reduce substantial data re-entry.”
In addition to being a faster, safer and more efficient means of settling property for developers, PEXA Projects:
-Reduces the administrative time and effort required for co-ordinating settlement of off-the-plan sales.
-Settles a large number of lots, or an entire development project on the same day, and at the same time.
-Provides developers with faster access to funds, improving cash flow.
-Provides a view of the status of all transactions within a development.
-Provides transparency over how a property settlement is progressing, allowing developers to have more meaningful conversations with their clients.
-Minimises the amount of paper required in the property exchange process leading to a more environmentally friendly workflow
With 150+ property developers settling some 210,000+ homes every year, PEXA Projects is providing tangible value to both the developer and consumer markets. In fact, in less than a year PEXA has captured nearly 10% of the multi-lot development market with 2000 lots settled via PEXA Projects in April 2017; a number forecast to sit closer to 25% by the end of 2017*
PEXA validated its PEXA Projects design with a variety of customers in different locations and listened to their feedback, leading to the first multi-lot development successfully settling at the end of 2016.
In that instance, 28 apartment dealings were executed in less than two minutes – a phenomenal improvement on traditional paper-based processes and an important step forward in allowing early access to capital, freeing up developers to move on to new projects.
Australia’s top government, business and policy minds have all come out publicly in their support for PEXA with the initiative considered of enough significance that is was mentioned by Australia’s largest bank in its most recent Annual Report to shareholders.
PEXA Projects has revolutionised the way large-scale property transactions are handled, for the better good of all involved.
In bullet-list form, briefly summarize up to ten (10) of the chief features and benefits of the nominated product or service.
-Achieved an independent market valuation of $839m, up from $500m in January 2016
-A compound quarterly growth rate of 68%
-Captured nearly 10% of the Property Developer market in less than 12 months
-Created a platform that allows Property Develoeprs to settle a large number of lots, or an entire development project on the same day, and at the same time.
-Provides Property Developers with faster access to funds, improving cash flow, providing the ability to move onto new projects faster.
-Expansion from a single office in Victoria through to seven offices, supporting 250+ employees across two countries
-Launch into a fifth jurisdiction
-Contracts signed with an additional 75 Financial Institutions and Banks (for a total 115)
-A doubling of the number of practitioner firms subscribed to the platform
-650% growth in the number of property transfers completed online through PEXA (June 2016 – June2017)