Vietnam PropTech Market: Waiting for the explosion of leading enterprises

With the entry of Vinhomes with the online-to-direct real estate transaction solution Vinhomes Market, the Vietnamese PropTech market promises to grow in the coming time, bringing benefits to home buyers.

The billion dollar " slice of light" of the real estate market

PropTech - real estate technology (RE) appeared in Vietnam 2 decades ago with a rudimentary model. In essence, these are online classifieds, which contain some information about real estate, instead of newspaper ads.

Along with the increasingly strong development of two pieces, real estate and technology, PropTech is becoming more and more popular, becoming a fertile land with room for development.

In a recent study, MSc. Phan Thi Huyen Trang - Faculty of Finance - Banking, Van Lang University said that after the initial faltering period, by the 2010s, the market witnessed the birth of mobile applications and million-dollar capital attraction deals of emerging PropTech platforms. The first was Propzy and then many famous startups, such as Homebase, MGi PropTech, Reti...

PropTech is an inevitable trend, bringing benefits to both project investors, brokers and real estate buyers.

The size of the Vietnamese PropTech market exceeds 500 million USD (in 2023) and is expected to grow strongly, at a rate of about 18.7% from 2024 to 2029. This means that in just a few years, the size of the PropTech market will reach the billion-dollar threshold.

This is the result of the strong and growing demand for real estate from the people and the characteristics of the emerging market in Vietnam, such as a young, tech-savvy population, along with funding sources and preferential policies for technology startups.

From a market perspective, Dr. Can Van Luc - member of the National Financial and Monetary Advisory Council, pointed out another reason why PropTech is developing rapidly because this is a model that benefits project investors, brokers and buyers. PropTech also has a large room for development because of its ability to connect with state agencies in market management, thereby bringing benefits to the country.

Sharing the same view, Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, affirmed that digital transformation is a mandatory and necessary choice. Real estate is a valuable asset but the market lacks information. To solve this problem, it is necessary to digitize real estate management and transactions. Digitized data creates conditions for organizations and individuals to access public, transparent, and reliable information.

Waiting for "explosion" from the big guys

Although there is a lot of room for development, according to MSc. Phan Huyen Trang, Vietnamese PropTech is actually only gradually moving to the 3.0 period while the world is entering a higher stage, 4.0.

"The Vietnamese PropTech market mainly focuses on real estate classifieds websites, and has not yet fully developed advanced technology solutions," Ms. Trang assessed.

The consequence of this lack of comprehensiveness is that users only have a small part of their needs met. In addition, users themselves will feel insecure about online transactions when they do not have complete information.

Vinhomes Market brings a seamless experience to customers from online to offline (O2O).

In this context, the emergence of online-to-direct real estate trading solutions such as Vinhomes Market attracts attention and raises high expectations from the market.

Right from the first steps, customers have unlimited access to all information about Vinhomes' real estate portfolio. All necessary information, from booking status (unit code, inventory) to listed purchase and sale value, is fully and publicly provided, ensuring customers have transparent access to the prices announced by the investor.

With Vinhomes Market, for the first time in Vietnam, buyers can book apartments and perform a series of procedures online, and design themselves thanks to the AI ​​interior feature.

To add more visuality and create trust for customers, Vinhomes Market allows users to sit at home and feel like they are at the place where the real estate they are interested in is thanks to advanced technology features such as virtual tours, 360 photos, etc. Thanks to that, customers can easily conduct surveys, from exploring the entire house, designing each room to the surrounding space without having to be present.

If satisfied, customers can book a unit and perform many online procedures on the same platform. These transactions are not only fast, convenient, and simplified, but also ensure legal safety.

In addition to the above closed cycle, users can also easily look up information about agents and brokers who are banned from selling or calculate payment cash flow, choose a plan that suits their personal financial reality...

Vietnamese PropTech accelerated from 2020 - 2021 when Covid-19 caused all direct transactions to stagnate. PropTech applications help users trust more in new technology solutions. Therefore, as users become more open, the appearance of Vinhomes Market is expected to create a strong driving force for this field to explode in the near future.

Source: https://dantri.com.vn/bat-dong-san/thi-truong-proptech-viet-cho-su-bung-no-cua-doanh-nghiep-dan-dau-20240930153458098.htm