Digital transformation in Vietnam's real estate sector is still slow.

In the context of digital transformation, the application of technology has become a "survival race" for Vietnamese businesses, and the real estate sector cannot stand aside. Especially since, in Vietnam, the real estate industry is projected to grow sixfold, reaching US$1,232 billion, and its share of GDP is also expected to increase to 13.6% by 2030 (Source: Vietnam Real Estate Association).

Meanwhile, several reports suggest that to boost the liquidity of the real estate market, developers spend an average of 15% on this activity, potentially reaching 25% at any given time, amounting to approximately $246.4 billion by 2030. This presents a lucrative opportunity for proptech companies directly involved in applying technology to reduce these transaction support costs. Therefore, promoting digital transformation in the real estate sector to exploit and increase its value, as well as assisting the government in planning and managing its development, is extremely necessary and urgent.

According to JLL and Tech in Asia, in 2021, Vietnamese proptech startups raised over $40 million. In the first half of 2022, the market also saw two more startups successfully raise capital. Attracting tens of millions of dollars in investment partly demonstrates the feasibility of the proptech model in Vietnam. However, the level of investment compared to the actual development needs of the Vietnamese proptech model is still very small. A minimum of $400 million (9,400 billion VND – only 0.03% of the market value in 2030) is needed annually to match the market's potential. To truly create a major boost and revolutionize the real estate industry, Vietnamese proptech startups need significantly more resources, investment, and more systematic and diverse support.

Users search for and look up planning information on Proptech platforms. Photo: THU HA

Product breakthroughs will increase investment appeal.

Recognizing the market's needs and potential, numerous proptech startups have been established in Vietnam in recent years. This has led to the development of many products and solutions aimed at addressing the "pain points" of the real estate industry. However, according to research firms like PwC Vietnam, there is still a lack of comprehensive solution providers. In other words, a complete real estate technology ecosystem is urgently needed.

As part of Vietnam's Proptech ecosystem, Meey Land is recognized as a pioneer in digital transformation aimed at increasing liquidity, maximizing the functionality of real estate, and contributing to affirming Vietnamese intelligence and brands. Furthermore, Meey Land has launched numerous technological applications, earning prestigious awards in the technology field such as the Sao Khue Award, Vietnam Digital Awards, and Top Industry 4.0 Vietnam.

Further clarifying the company's operations, Mr. Hoang Mai Chung, Chairman of the Board of Directors of Meey Land Group Joint Stock Company, shared: “Meey Land's staff always adheres to the principle of focusing on technology products as the core of business development. The Meey Land real estate technology-finance ecosystem is very diverse, capable of meeting the needs of many different customer segments while still ensuring specialization. In addition, Meey Land constantly updates new technologies to improve and enhance the efficiency of its products.”

"All of Meey Land's applications stem from the real needs of the market. According to research data compiled by PwC Vietnam, in 2021, the real estate brokerage sector on technology platforms received the most investment capital among all segments, reaching approximately $53 million. From this, we can see the level of investor interest in this sector is very high. Accurately predicting market demand, Meey Land launched Meey CRM - a customer demand management application specifically for real estate brokers - in June 2021 and has initially received support from customers. Meey CRM's vision is to become a provider of "digital real estate trading platforms" for traditional real estate agencies and developers. A powerful tool to help brokers manage real estate information, connect with customers and other brokers. I believe that predicting the market and seizing opportunities is crucial." "Opportunity is extremely important in the development strategy of every business, and Meey Land has done a good job of that," Mr. Hoang Mai Chung emphasized.

Based on research and assessments by PwC Vietnam and several specialized industry reference websites, experts from Meey Land Group have proposed a Proptech Market Map. In this map, products within the Meey Land ecosystem are making significant contributions to the overall market picture. For example, in the Social Network category, there are Meey Share, Meey TV, Meey Project, and Meey Chat; in the Listing category, there is meeyland.com; and in the Digital Broker category, there are Meey CRM and Meey Ads. Meey Land's aspiration is not only to increase value for the industry but also to collaborate and invest with other entities to build and develop the Proptech market, contributing to the country's overall digital transformation. The map is still under construction and may not be complete, so feedback is greatly appreciated for continuous updates in the future.

The Proptech market map was created by Meey Land experts. Photo: THU HA

Technology has now become a key differentiating factor. If businesses master technology, they will have the opportunity to break through and dominate the domestic market as well as attract foreign investment. With many supportive policies and existing potential, Proptech will certainly take faster and more solid steps in the future.
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