IpData, a start-up in the property technology sector, has secured $1.6 million in funding from investors to further enhance its technology platform. The platform assists property developers and investors in assessing the viability of purchasing specific plots of land in any Australian city and developing them.
The former KPMG partner, Con Tragakis, chairs the company, which claims to have created a completely automated property feasibility algorithm. This algorithm utilizes machine learning to predict the potential profit for any proposed development, offering a sensible purchase price before a buyer makes a decision.
IpData’s platform uses an artificial intelligence engine for land economics to calculate the return on investment. The algorithm considers up to 30 different data sets, including optimal building size, development style, proximity to the beach or harbor, proximity to a main road, location on a tree-lined street, comparable house and land package prices, distance to public transport, and other attributes that ultimately determine value and future returns.
According to George Giannakodakis, the CEO of ipData, their algorithm will perform well in both upturns and downturns in the property market, as it feeds on real-time data. He explained that the company had developed extensive big data learning sets and has been experimenting with various data layers to identify patterns.
Mr. Giannakodakis, who has worked in property planning for over 25 years, founded ipData in 2014. The hi-tech home loans group TicToc’s former chairman, Mr. Tragakis, also serves as the company’s chairman.
ipData has created two different platforms. The Property AI algorithm can assess the feasibility of developing a parcel of land almost instantly and simulate the entire development process from start to finish. It is supported by an automated valuation model called Valeri.
The first phase of the algorithm’s development was focused on the Adelaide property market, with Sydney data currently in development. Blind testing has demonstrated that the algorithm is delivering better results. “Adelaide is up and running and being tested. Sydney is being built,” said Mr. Giannakodakis.
The ultimate goal is to have instant report downloads available for all of Australia’s capital cities. The company raised $1.6 million in a Series A round of funding to speed up commercialization and received a $387,000 injection from the Federal Government’s Accelerating Commercialisation Grant scheme.
