(TBTCO) – Proptech companies are making a positive contribution to the real estate market in Vietnam. The protech investment trend continues to increase, however, the target is sustainable and truly profitable proptech platforms.
Vietnam is increasing its market share in the proptech market
– Savills Impacts forecasts that in the period from 2020 – 2026, the size of the world technology data storage market will grow at a rate of 4.5% per year and reach US $ 251 billion by 2026. Public development technology in the real estate sector, also known as proptech, has become a lucrative sector attracting a lot of investment in Europe, especially in countries such as the UK, Germany and Spain.
– In Vietnam, in the period from 2019 to 2020, the market witnessed exciting activities of investors participating in technology development, especially in the real estate sector – proptech, including: Asset management – real estate, sales platform and investment-oriented platform fintech real estate exploitation. Mr. Neil MacGregor – Managing Director of Savills Vietnam, said: “We can confidently say that Vietnam’s proptech market has increased its market share in Southeast Asia and expect this trend to continue. “.
– Explaining proptech’s growth activities right in the Covid-19 pandemic, Mr. Neil MacGregor pointed out two main reasons: First, the huge potential of the real estate market in Vietnam, with a total population of up to more than 97 million people by 2021. The real estate market is still in a nascent stage with many problems to be solved. Proptech has the ability to offer solutions to overcome these outstanding problems.
– Second, Vietnamese people have a certain understanding of technology and have a good ability to absorb new technologies. The proptech market is exploiting this tech-savvy population, especially those in apartment buildings, using real estate management applications.
– Proptech – to help streamline the apparatus, optimize the building’s operating costs
– Ms. Vu Kieu Hanh – Director of real estate management, Savills Hanoi said, besides management, technology is playing an important role in optimizing operating costs for projects during and after Covid-19. With the current situation, the adjustment to increase service fees is almost difficult to implement. Factors constituting operating costs such as quantity, electricity bills … have been adjusted to increase several times since 2015, putting pressure on costs for professional operation management units. The application of technology into operational management has helped increase management efficiency, especially streamlining the apparatus, and optimizing the building’s operating costs.
– According to Ms. Kieu Hanh, compared to developed markets in the real estate management industry such as Singapore and Hong Kong, the Vietnamese market will encounter difficulties related to people’s awareness of the rules of the use of shared houses. settlement. Professional management units will add more difficulty when forced to apply international standard management activities in parallel with compliance with domestic market regulations on management, including financial transparency management. . Property Cube application software with periodic reports, bringing transparency in monthly revenue and expenditure activities of the building management.
– In addition, the current average age of real estate managers in Vietnam is between 40 and 50, and there is a shortage of young human resources. Technological change will attract young people to enter this field.
– “Vietnam’s real estate market will continue to grow, especially in key cities such as Hanoi, HCMC. Ho Chi Minh City and other “resort cities”. We expect more and more capital will be invested in proptech to serve this growing market. The current investment trend will continue; however, the target is truly sustainable and profitable proptech platforms. Lots of platforms will struggle to prove their profitability over the years, and investors will look for one that demonstrates the ability to grow sustainably and bring in high profits, rather than just burning. money on rapid expansion ”- Mr. Neil MacGregor added.