Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

The metaverse and the birth of the new wave of property investment

By Kyle Robbins
22 July 2022 | 1 minute read
metaverse reb

Facebook’s decision to rebrand last year as Meta and founder Mark Zuckerberg’s commitment to establishing “a new virtual world for users” is just one example of a new wave of investment opportunities being borne out of technology.

Metaverses, including those outside of Mr Zuckerberg’s control, present the possibility and likelihood of “digital land” investments. Fred Schebesta, the co-founder of Finder, has described the technological advancements as the “biggest jump for real estate”.

“It’s obvious and already happening,” he added.

Advertisement
Advertisement

And according to Knight Frank’s The Wealth Report, the investment into virtual assets is growing in prevalence, and value. The report cited an interview conducted with Yat Siu, whose gaming metaverse, The Sandbox, has seen plots of virtual real estate finding buyers for hundreds of thousands of dollars. 

“Virtual real estate functions in very much the same way as physical real estate — location is key,” Mr Siu explained. “For example, in The Sandbox property around Atari or Snoop Dogg is much more valuable. Places that have more influence have higher value. It’s a community and an embedded network effect.”

The sale of virtual land and houses has already begun, presenting an interesting chance for investors to gaze into the future of the industry. In November 2021, ninety-two parcels of land were sold in The Sandbox, representing 7.9 million square metres of game area, for US$4.3 million dollars.

Similarly, the world’s first digital NFT house, Mars House, was sold for US$515,000. Mr Siu indicated that these sales of digital real estate, much like the sale of NFTs and other digital assets, are born from similar sentiments seen in the purchasing of physical assets and possessions. 

“In the real world when you’re buying a designer bag, what are you buying?” he asked, before explaining that “99 per cent of the value is the idea and the power and the network effect of owning that designer and perhaps the rarity”.

In the digital world, it’s the same: “Why you buy it isn’t real, it’s the idea and the influence.”

Such is the strength of these virtual assets that the total value of assets traded on the Animoca Brands, the parent company of The Sandbox, “puts the blockchain gaming ecosystem ahead of the GDP of Djibouti and Bhutan, among others”. 

Knight Frank partner of residential research Flora Harley has indicated that “we will likely see more tokenisation and digital ownership of property emerging due to greater adoption and understanding by this younger generation”. 

It’s not a concept reserved for the future either, with Ms Harley acknowledging that “mortgages based on non-fungible tokens are already being issued”.

The metaverse and the birth of the new wave of property investment
metaverse reb
lawyersweekly logo

Tags:

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.