The effect of virtual reality on the marketing of residential property

Property technology has ushered in new possibilities for the real estate industry, including the use of virtual reality (VR) technologies by real estate agents when marketing properties. Previous studies have identified factors in determining purchase intents within a virtual setting, but little is known about how such technologies affect homebuyers' purchase decisions. In this study, a family-home purchase decision-making model is used to conceptualise how VR can affect buyers' involvement in the property purchasing process. Using transaction data from Wuhan City, China, the study found that a 1% increase in the number of followers visiting an online property portal resulted in a 21% increase in physical home visits. The study also indicates that VR tours shorten the marketing time of property by 6.4% and narrow the bid-ask spread by 2%, ceteris paribus. These findings suggest that emerging property technologies such as VR can enhance the purchase decision-making process and reshape the role of the real estate agent.