Could Pokemon Go increase real estate prices?

The Pokemon Go phenomena is being used as a marketing tool for real estate listings, but is this buzz just another illusion of the game?

Just when you thought you’d seen it all, it turns out you haven’t.

While virtual reality holograms are leading the way in real estate tech, there’s another, less likely marketing tool for realtors looking for a new angle.

Pokemon Go – you would have to have been living under a rock for the past few weeks not to have caught a whiff of the excitement. It’s the fastest downloaded game app in history, with 10 million downloads in the first week, this number now exceeding 40 million.

The app is a hunt for virtual monsters – ‘Pokemon’ – based on the popular Japanese cartoon from the nineties. Players in the augmented reality game use GPS to ‘capture’ animated creatures in real life locations.

The app will direct you to ‘Pokemon Gyms,’ public places where you can meet other players, and ‘PokeStops’ where you can collect ‘Pokeballs’ to help you capture more Pokemon.

Opportunistic realtors are using proximity to these areas as unique selling points.

In his advertisement for an open house listed at $1.5 million, Manhattan real estate agent Jay Glazer wrote: “I’m fairly certain there is a PIKACHU at this open house, don’t miss it.”

Glazer, a Pokemon Go player, explained his reasoning to CNBC:

“I think at the end of the day the goal is to get as many people through the door and interested in the apartment, and ultimately, if there’s a ‘Pokemon’ obsessed person out there who also likes this home, then we want them here, and this is the best way to attract them.”

More: Silicon Valley company acquires virtual reality tour operator

A listing on Zillow, a US based listings site similar to PropertyGuru, tried a similar tact:

“3 Pokemon Go Gyms, and 5 Pokestops. Confirmed Squirrtle sighting in the backyard, and there may or may not be a Charzard lvl 7 in the neighbors shed. Must see to appreciate!”

While some are predicting property value increases of as much as $50,000, travel website Atlas Obscura has dismissed this as “wishful thinking at best.”

Among the optimistic is Australian real estate agent Rob Levy. He told news.com.au that Pokemon Go would “absolutely” have an effect on a property’s rental or sales price. He says:

“Especially among the under-35 first home buyers market, yes.” He continued: “When you have 300 identical houses to choose from, why wouldn’t you choose one near a PokeStop?”

Some take a reverse view, believing a rush of Pokemon Go players descending on an area could be detrimental.

Florida real estate agent Cara Ameer told Realtor:

“It could become a negative in the neighborhood with all sorts of activity and people coming and going at all hours […] It could lead to neighborhood covenants and restrictions being amended. Perhaps there will need to be a required permit to be obtained or special zoning requirements that residents have a right to live in a ‘game-free zone.’”

Does Pokemon Go have any relevance in the luxury real estate world?

General consensus is that the games appeal may be largely applicable to the rental market, and not high-end sales listings. As Glazer admitted:

“I think that sellers might be opposed to advertising ‘Pokemon Go’ in their listings ultimately because — let’s admit — it is a little bit childish and not necessarily highbrow, and if you’re going for a certain look or aesthetic, a theme such as sophistication, it’s ultimately not going to fit in with that.”

Pokemon Go in Asia

Currently in Asia, the game is only available in Japan and Hong Kong, but it will soon launch in other countries in the region.

TechInAsia reported that in terms of online searches, Pokemon Go ranks higher than Brexit, Game of Thrones and Obama. The game is most highly searched in Indonesia, followed by the Philippines, Singapore, Malaysia, Vietnam, and Thailand.

While level headed investors may not rush to acquire a property based on its proximity to a PokeStop – after all, many doubt how sustainable the app’s success will be long term, perhaps this predicted effect on property prices is just as imaginary and ephemeral as the cartoon critters themselves?

As CNBC argues, although Pokemon Go may bring more people to an open house, this could just give the illusion of increased competition for a particular listing.

It’s impact on sale prices still remains to be seen.

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Source: Property Report