The amalgamation of real estate and technology - often referred to as Proptech - is increasingly flourishing in Vietnam in line with the growth of the country’s real estate market in recent years and penetrating all property segments, from housing, office, hospitality to building management services in Vietnam as an indispensable trend in the booming era of digital technology.
Proptech has been assisting real estate businesses in Vietnam in changing their business models and adapting to the new generation of customers. This was the main topic throughout the Episode 6 of the Property Insight program.
How is Proptech offering vast opportunities for both businesses and users?
As influenced by the global trend of technology application in real estate, Vietnam market is witnessing smart technologies spreading to many aspects of the real estate market. From the property sales, leasing or marketing activities to real estate management, Proptech is changing the prospect of the local property landscape as well as improving users’ experience in a smart and effective way.
Property startups, therefore, are now focusing on enhancing users’ experience, learning, and applying new technologies to attract more potential customers, especially young people, Mr. John Le, CEO of Propzy, commented on the Property Insight program.
In Vietnam, Proptech is utilized mostly in housing and office segments. The application of technologies has induced many property listing and brokerage startups like Propzy, Rever or Hoozing which are introducing information, consulting sales, leasing or doing project management to become one of the main search channels for young customers.
It can be seen in Vietnam’s Proptech ecosystem now that the application of technologies is a trend which is creating a rapid change in many real estate business models in the country recently. As Vietnamese consumers are extremely fond of smart city models, development opportunities for Proptech enterprises are huge.
Analyzing the Proptech trend in the Property Insight program - Episode 6, Mr. Andy Han Suk Jung, CEO SonKim Land said that Vietnam’s Proptech market has been still in the early stage. The number of users is less but the potentials for development is huge. “As a real estate developer, we mainly operate in the primary market while most Proptech companies are growing in the secondary market,” he said.
“In the future, however, when more Proptech businesses enter the market, customers will gradually get used to these technologies and will require better services from them. We will be looking for opportunities to cooperate with Proptech startups to expand sales channels, apply technological solutions in asset management services in order to make our operations easier and more convenient. Even with customers who bought our houses, they will find ways to lease their houses through our new services,” Mr. Andy added.
Database - a core factor for sustainable development
Besides conditions of technology infrastructure, Mr. Andy also emphasized that data is one of the core elements for real estate developers. “We have to work with big firms on real estate consulting to get quality data. They make lots of monthly or yearly transactions so they can provide a raft of useful information about the rentals, real selling prices, or secondary market transaction prices,” he said.
In the same opinion, Mr. Le Huynh Nhut Hai, CEO of Hoozing, a property brokerage startup, also affirmed that market data is the most valuable asset in the long term for a Proptech business. “We are trying to make market data more transparent, help customers look up information more efficiently, focus on their journeys, and digitize every step in that transaction process,” he told about the Property Insight program.
With Rever, Mr. Phan Nhat Minh believes that technological solutions help to significantly increase productivity in the real estate brokerage sector as well as save time and costs for both buyers and sellers. “Technology brokers can serve the number of 10 times customers more than traditional ones or conduct 14 transactions per year instead of 6 transactions before,” Mr. Minh said.
It can be observed that Proptech’s development potential in Vietnam is huge and it is getting more and more attention from investors, users and real estate service businesses. The innovation of technology is a key factor to create a transparent, substantive and diverse database which helps the local real estate market to be developed sustainably and to better meets the needs of consumers.