Digitalisation transformation vital to real estate sector

Hanoi (VNA) – Digital transformation in the real estate sector is an inevitable trend that will boost sales of products and services in the industry, heard a forum organised in Hanoi on December 13.

Participants at the Real Estate Forum 2022 said digital transformation is taking place strongly in many fields and real estate, which accounts for about 11% of the country’s GDP, is not an exception.

Speaking at the event, Nguyen Manh Ha, Standing Vice President of Vietnam Real Estate Association, said the potential of applying the technology to the real estate sector in Vietnam is huge.

In addition to shortening the time and saving cost and human resources for buyers and sellers, digital transformation also helps promote stable and transparent market circulation, he said.

Particularly, digital transformation also facilitates liquidity for real estate, as well as supply and demand connections.

According to Ha, proptech (property technology) meets three real estate market requirements, including providing information, supporting transaction and managing processes. These help people manage real estate-related activities by supplying convenient services and optimising security.

Nguyen Cong Chinh, a representative of Dat Xanh Mien Bac Real Estate & Service JSC, said that proptech is providing applications and economic platforms for the real estate industry in Vietnam. Currently, many large investors and real estate brokerage companies also build their own software.

However, many experts believe that proptech in Vietnam will happen slowly because not all market participants are fully aware of the importance of technology. It also requires high security and investment capital.

Hoang Mai Chung, Chairman of Meey Land Group, said that one of the drawbacks of proptech in Vietnam is that user data is not big enough. A lack of human resources with technology capability is also a problem.

These limitations mean that technology application in the real estate sector is falling behind other sectors.

He noted that the development of proptech is not comprehensive, saying the digital transformation was mainly used in the rental segment.

However, Chung said, the potential for proptech will be great due to a large number of participants in the real estate chain.

Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, also said that proptech development will take time. However, its arrival will bring many benefits, such as creating a foundation for sustainable market development and fully complying with requirements on market openness and transparency.

In particular, the application of proptech will change the ways real estate transactions are done, making it convenient for both project developers and buyers. It will link state agencies to market management as well as ensuring the harmony of the State management, he said.

Echoing Vo’s view, Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association emphasised that the digital transformation is one of the important factors determining the success or failure of each business.

In the future, real estate enterprises that are moving at a slow pace in the digitalisation process will find it difficult to gain a foothold in the market. Therefore, it is necessary for them to be proactive and deploy a digital transformation strategy soon to gain a position, Dinh said.

According to Can Van Luc, chief economist at the Bank for Investment and Development of Vietnam, given the current market situation, it is a must for real estate businesses to devise and implement business models and strategies which are relevant to the digital age. They are urged to consider the optimal plan for investment in information technology, especially important infrastructures such as management software, database of markets and customers and digital distribution channels.

They should strengthen cooperation with proptech companies in the market through investment activities, he said. This collaboration brings about advantages, because these companies often lack experience in the Vietnamese real estate market, while these are the strengths of traditional real estate businesses./.