According to research by the Vietnam Real Estate Association, the scale of Vietnam's real estate market will reach $1,232 billion, accounting for 22% of the total economic assets by 2030. This is also the "magnet" of the size. Proptech 2.0 race into the real estate market.
In the real estate sector, technology that enhances customer experience, optimizes operational processes and is expected to become a leading market trend in the coming years.
In recent years, solutions and technology models related to real estate have appeared more and more in Vietnam. Many technology companies are constantly expanding their market share, showing that the real estate technology race is accelerating. Recently, the Houze Group deal announced to receive an additional investment of USD 2 million under the leadership of DKRA, helping this technology company have resources to continue to expand services and develop technology. The first move in the plan to expand the market share of this business is to open the head office in Thu Duc City, Ho Chi Minh City.
This is a multi-platform technology building technology service ecosystem for both brokers and home buyers, providing integrated services from transaction, management, investment to finance in real estate. produce. A representative of this unit said that the company is in the process of negotiating with venture capital funds to supplement capital for the strategy of launching new products such as Houze Portal, Houze Super App and Houze Finance.
Prior to that, VIISA invested a seed round in the brokerage platform MGi Proptech, and RETI received investment from CyberAgent Capital. Or the $ 30 million deal of Homebase and $ 10.2 million of Rever...
The expansion of market share by raising capital must mention Propzy. This is the propptech with the largest capital mobilization scale in Vietnam. However, later, this company suddenly announced to the domestic and foreign media about the reduction of personnel and downsizing operations. Although it does not represent the market, the downsizing of Propzy shows that there are still many barriers that Vietnamese proptechs cannot overcome.
While Cho Tot Nha said it will participate more deeply in real estate technology and develop a brokerage system. Currently, this unit has a plan to divide its business model vertically, which is online news (marketplace), financial services for real estate (fintech) and brokerage (brokerage).
It can be seen that the Proptech Vietnam 2.0 generation exploded with a series of Startups participating in activities in the real estate value chain. Not only posting and classified ads, Proptech also solves real estate management and operations, investment and rental, brokerage services, space sharing and real estate finance...
According to JLL and Tech in Asia, Proptech Vietnam is a promising market in the wave of investment in technology startups in Southeast Asia and the whole Asia region. Proptechs in Southeast Asia have raised a total of 72.9 million USD in investment capital as well as leading in volume with 11 out of 38 deals in 2019 in Asia. The attraction of investment capital to tens of millions of USD partly proves the effectiveness of the Proptech model in Vietnam.
According to the Vietnam Real Estate Association, the industry value in 2020 is estimated at 205 billion USD. To date, however, no proptech business has reached unicorn status. Even in the past 5 years, the total investment capital of proptechs in the industry (including foreign) has not yet exceeded 150 million USD.
Although not reaching the unicorn status does not mean that Vietnamese proptechs do not have the opportunity to develop. Pham Lam, founder of Houze Group, said that Vietnam's real estate is a picture with a developing primary market and a secondary market that is temporarily forgotten because it cannot be touched by simply connecting with the internet. technology. Participating proptechs need a holistic view to develop according to the needs of the market.
According to Mr. Lam, technology will break through geographical and human resource limitations, bridge the gap between realtors and homebuyers, and professionalize the brokerage community.
During the launching ceremony of digital technology application, Mr. Tran Van Hao, Technology Director of Dat Vang Vietnam Technology and Real Estate Investment Joint Stock Company, said that real estate is a big investment, technology will contribute to help the development of real estate. more secure investors. One day, real estate technology will not only serve Vietnamese investors, but also need to be recognized at the regional and global level.
And Mr. Tran Ngoc Anh, Chairman of the Board of Directors of MGi Proptech, who used to run a traditional brokerage company, said that the inability to control the secondary brokerage team is because each individual has a unique personality. self-employment is very high, conventional management methods will not be able to meet. Accordingly, technology is effectively solving this problem.
At The Mirror - Flow in the Vein, Seize the Ultimate event organized by Twin Real Estate and its partners on June 30, 2022, Twin Real Estate simulated a 100% online product launch event at the event. For attendees who are investors, it's a testament to the power of technology application in a field that is considered conservative like real estate.
According to Mr. Nguyen Hieu Hau - Director & Co-Founder of Twin Real Estate, the development of the real estate industry in Vietnam from unspoiled lands to modern urban areas cannot without the contribution of Mr. technology. The 4.0 technology revolution that has been accelerated more than ever is the Covid-19 epidemic. When all offline activities are forced to turn online in the context of social distancing, the trend of digital transformation has completely changed the real estate market.
From overcoming difficulties during the pandemic to becoming a leading trend in the market, technology solutions have brought business performance that surpasses traditional methods by automating management & operation processes, increasing customer experience, saving time and optimizing costs for both buyers and sellers,...
According to a representative of Twin Real Estate, it can be seen that in just 2 years, breakthrough technology solutions such as shopping cart management, booking support, automating customer care, ... have become leverage for businesses Real estate businesses from start-ups to "big guys" change and develop dramatically, meeting the increasing requirements of customers.
However, according to experts, for a market where digital transformation is in its early stages, such as real estate, investment capital and technology alone are not enough. Proptech companies need to be deeply involved in the real estate transaction process as well as provide effective solutions for the real estate brokerage and service community.
By Nhip song kinh te