With Vinhomes' entry into the Vietnamese PropTech market with its online-to-in-person real estate transaction solution, Vinhomes Market, the Vietnamese market promises growth in the coming period, benefiting homebuyers.
The multi-billion dollar " pie " of the real estate market.
PropTech – real estate technology – emerged in Vietnam two decades ago in its rudimentary form. Essentially, these were online classifieds websites containing some information about properties, replacing traditional newspaper ads.
With the increasingly strong development of both real estate and technology, PropTech is becoming more and more popular, becoming a fertile ground with ample room for growth.
In a recent study, Ms. Phan Thi Huyen Trang, M.Sc. - Faculty of Finance and Banking, Van Lang University, stated that after an initial tentative phase, the market witnessed the emergence of mobile applications and multi-million dollar funding deals for newly emerging PropTech platforms in the 2010s. Propzy was the first, followed by many well-known startups such as Homebase, MGi PropTech, Reti…
PropTech is an inevitable trend, benefiting project developers, brokers, and real estate buyers alike.
The size of the Vietnamese PropTech market exceeded $500 million (in 2023) and is predicted to grow strongly, at a rate of approximately 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 mark.
This is a result of the rapidly increasing demand for real estate from the public, coupled with the characteristics of Vietnam's emerging market, such as a young, tech-savvy population, and favorable funding and policies for technology startups.
From a market perspective, Dr. Can Van Luc, a member of the National Financial and Monetary Advisory Council, further points out that PropTech's rapid development is due to its model's benefits for project developers, brokers, and buyers alike. PropTech also has significant potential for growth because of its ability to connect with government agencies in market management, thereby benefiting the nation.
Sharing the same view, Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, affirmed that digital transformation is a mandatory choice and must be implemented. Real estate is characterized by high-value assets, but the market lacks sufficient information. To address this, it is necessary to digitize real estate management and transactions. Digitized data facilitates access to public, transparent, and reliable information for organizations and individuals.
Waiting for a "breakthrough" from the big players .
Despite having ample room for development, according to Ms. Phan Huyen Trang, Vietnam's PropTech sector is only just beginning to transition to the 3.0 era, while the world is moving on to the higher stage of 4.0.
"The Vietnamese PropTech market is mainly focused on real estate classified ad 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 portion of their needs met. Furthermore, users themselves will feel insecure about online transactions when they lack complete information.
Vinhomes Market offers a seamless customer experience from online to offline (O2O).
In this context, the emergence of real estate transaction solutions that transition from online to in-person, such as Vinhomes Market, has attracted attention and generated high expectations from the market.
From the very first contact, customers have unlimited access to all information about Vinhomes' real estate portfolio. All necessary information, from reservation status (unit code, available units) to listed purchase prices, is provided fully and publicly, ensuring customers have transparent access to the developer's published prices.
With Vinhomes Market, for the first time in Vietnam, buyers can reserve a unit and complete a range of procedures online, and even design their own interior thanks to AI-powered interior design features.
To enhance the visual experience and build customer trust, Vinhomes Market allows users to virtually visit the property they are interested in from the comfort of their own homes, thanks to advanced technological features such as virtual tours and 360-degree photos. This makes it easy for customers to conduct surveys, exploring the overall layout of the house, the design of each room, and the surrounding area without being physically present.
If satisfied, customers can book the property and complete various procedures online on the same platform. These transactions are not only fast, convenient, and streamlined, but also legally secure.
In addition to the comprehensive process, users can easily look up information about banned dealers and brokers, calculate payment cash flow, and choose options that suit their personal financial situation.
PropTech in Vietnam accelerated its growth from 2020-2021 when Covid-19 brought all in-person transactions to a standstill. PropTech applications helped users gain more trust in new technological solutions. Therefore, as users become more open-minded, the emergence of Vinhomes Market is expected to create a strong impetus for this sector to boom 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
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