Illustrative image (Photo: VNA)HCM City (VNS/VNA) - As technology develops and demand keepsincreasing in the property sector, proptech will develop in a similar way tofintech, experts have said.
Proptech, or property technology, has developed strongly in Vietnam with manystart-ups being launched and attracting investment from major players and manyservices being developed to meet market demand.
An expert from Savill Vietnam said there are certain reasons for the market’srise: the country’s huge population, the problems it faces, which could beresolved by proptech, and Vietnamese people’s ability to use technology.
Hoang Duc Trung, a partner at VinaCapital Ventures, told Viet Nam News: “Webelieve proptech will develop in a similar way to fintech, that is, mostlybased on how technology stacks are developed and evolve to resolve structuralpain points and inefficiencies and positioned at the intersection of all marketstakeholders.
“We think that the trendsetters and growth drivers will continue to be thosecompanies that create and offer disruptive solutions that optimise andaggregate resources and financing, improve industry standards and customerexperiences and ensure transparency and data security.”
He attributed the growth of the market to the strong economy, acceleratingurbanisation and rising incomes which continue to drive demand in the propertymarket.
“This growth is also fuelling digital transformation and the development ofdisruptive technology infrastructure, which is commonly known as ‘proptech’.”
According to Trung, proptech has gained ground in Vietnam in recent years,mostly thanks to the country’s young and tech-savvy population.
“Hundreds of proptech start-ups and traditional real state firms are aiming toleverage technology to improve their operations and competitive edge byproviding effective solutions to enhance home buying, selling, renting, andliving experiences.”
Some of the famous apps and proptech products in the market include Saas,Propzy, Go2Joy Vietnam, Citics, Homebase, and A.Plus Home.
They have successfully raised capital from foreign investors.
For instance, Propzy, a leader in the proptech industry and providestransparent online property services, raised 37 million USD.
Speaking about the reasons for investing in proptech, Doan Le Minh Tri, seniorinvestment manager at VinaCapital Ventures, said: “We have been monitoring thedevelopment of the proptech sector and see its enormous potential, given thecontinuing growth of the real estate market and increasing digitisationtrends.”
VinaCapital’s first investment in the sector was in Rever, which has builtinfrastructure to make the transaction process smoother. Its solution hasoutpaced the industry’s benchmarks related to data accuracy, the number of daysa property is on the market and agent efficiency ratio.
More recently, VinaCapital Ventures invested in Homebase, which offers arent-to-own financing option for millennials and the under-banked population torealise their home ownership goals.
Both companies are addressing long-standing pain points in Vietnam’s realestate market.
“We invested in these companies because they possess operational know-howblended with superior technology stacks that aim to serve homebuyers throughoutthe transaction journey, from screening and touring properties, conductinglegal checks, arranging financing, and related paperwork that comes with owninga home.
“These services are provided affordably and transparently, enabling these companiesto provide a higher level of customer service. We have a strong belief thatRever and Homebase are well-positioned to become leaders in their respectivesegments,” he told Viet Nam News.
The investment in the market has shown how promising it is.
Speaking about the efficiency of proptech, John Le, CEO and founder of PropzyVietnam said: “Our sales guys are now on average bringing much more with muchless, so our technology SAM has been a major influence because it has ensuredcertain business processes that otherwise cannot be done in any normal worldbecause you cannot get 300 salespeople to collaborate.
“But this technology allows the sales team to be connected, engage with oneanother and collaborate to get the best outcome possible which is a real estatetransaction from buyer to seller, an asset we have been able to enable oursales guys to perform at absolute best.
“We’ve seen glimpses of success in other developed markets where propertybuyers are able to make purchase decisions without physically visiting theproperties; however in Vietnam, there's still a long way to go.
“Having said that, there is a silver lining in the cloud and that's thehigh-rise or condo market. As that segment of the property market growsrelative to the overall market we can anticipate adoption of virtual touringand purchasing potentially happening sooner rather than later.”/.
Proptech, or property technology, has developed strongly in Vietnam with manystart-ups being launched and attracting investment from major players and manyservices being developed to meet market demand.
An expert from Savill Vietnam said there are certain reasons for the market’srise: the country’s huge population, the problems it faces, which could beresolved by proptech, and Vietnamese people’s ability to use technology.
Hoang Duc Trung, a partner at VinaCapital Ventures, told Viet Nam News: “Webelieve proptech will develop in a similar way to fintech, that is, mostlybased on how technology stacks are developed and evolve to resolve structuralpain points and inefficiencies and positioned at the intersection of all marketstakeholders.
“We think that the trendsetters and growth drivers will continue to be thosecompanies that create and offer disruptive solutions that optimise andaggregate resources and financing, improve industry standards and customerexperiences and ensure transparency and data security.”
He attributed the growth of the market to the strong economy, acceleratingurbanisation and rising incomes which continue to drive demand in the propertymarket.
“This growth is also fuelling digital transformation and the development ofdisruptive technology infrastructure, which is commonly known as ‘proptech’.”
According to Trung, proptech has gained ground in Vietnam in recent years,mostly thanks to the country’s young and tech-savvy population.
“Hundreds of proptech start-ups and traditional real state firms are aiming toleverage technology to improve their operations and competitive edge byproviding effective solutions to enhance home buying, selling, renting, andliving experiences.”
Some of the famous apps and proptech products in the market include Saas,Propzy, Go2Joy Vietnam, Citics, Homebase, and A.Plus Home.
They have successfully raised capital from foreign investors.
For instance, Propzy, a leader in the proptech industry and providestransparent online property services, raised 37 million USD.
Speaking about the reasons for investing in proptech, Doan Le Minh Tri, seniorinvestment manager at VinaCapital Ventures, said: “We have been monitoring thedevelopment of the proptech sector and see its enormous potential, given thecontinuing growth of the real estate market and increasing digitisationtrends.”
VinaCapital’s first investment in the sector was in Rever, which has builtinfrastructure to make the transaction process smoother. Its solution hasoutpaced the industry’s benchmarks related to data accuracy, the number of daysa property is on the market and agent efficiency ratio.
More recently, VinaCapital Ventures invested in Homebase, which offers arent-to-own financing option for millennials and the under-banked population torealise their home ownership goals.
Both companies are addressing long-standing pain points in Vietnam’s realestate market.
“We invested in these companies because they possess operational know-howblended with superior technology stacks that aim to serve homebuyers throughoutthe transaction journey, from screening and touring properties, conductinglegal checks, arranging financing, and related paperwork that comes with owninga home.
“These services are provided affordably and transparently, enabling these companiesto provide a higher level of customer service. We have a strong belief thatRever and Homebase are well-positioned to become leaders in their respectivesegments,” he told Viet Nam News.
The investment in the market has shown how promising it is.
Speaking about the efficiency of proptech, John Le, CEO and founder of PropzyVietnam said: “Our sales guys are now on average bringing much more with muchless, so our technology SAM has been a major influence because it has ensuredcertain business processes that otherwise cannot be done in any normal worldbecause you cannot get 300 salespeople to collaborate.
“But this technology allows the sales team to be connected, engage with oneanother and collaborate to get the best outcome possible which is a real estatetransaction from buyer to seller, an asset we have been able to enable oursales guys to perform at absolute best.
“We’ve seen glimpses of success in other developed markets where propertybuyers are able to make purchase decisions without physically visiting theproperties; however in Vietnam, there's still a long way to go.
“Having said that, there is a silver lining in the cloud and that's thehigh-rise or condo market. As that segment of the property market growsrelative to the overall market we can anticipate adoption of virtual touringand purchasing potentially happening sooner rather than later.”/.
VNA
