Some proptechs still have commitments from investors to provide huge capital, which shows the great potential of the platform in the future.
Like other startups, proptechs have been expanding very rapidly and striving for the multi-goal business model, optimizing value for users.
Propzy Vietnam recently introduced FIRE-Tech, a platform that provides comprehensive real estate, finance and insurance services.
The utilities FIRE-Tech brings include Pricing Data (information about land and house prices), Neighborhood Score (information about internal and external utilities), Condo Hub (apartment project’s information portal) and News & Lifestyle Portal (latest market and lifestyle news).
|Some proptechs still have commitments from investors to provide huge capital, which shows the great potential of the platform in the future.|
Hombase is another prop tech well known for its financial support models for buyers.
It specializes in providing personalized real estate investment plans, where home buyers only pay for a certain number of shares first, and then move in immediately. They will pay for the remaining shares later when they save enough money.
There are 56 operational proptechs which provide different services, including brokerage, investment, financial support, asset management and IoT, co-working space, virtual reality technology, valuation and analysis, and hotel management.
Experts say that the big changes in the operation model of proptechs show signs of the second wave of proptech (Proptech 2.0), which aims to build a One-Stop-Shop-style service system.
This explains why more proptechs in Vietnam have begun cooperating with fintech players. For example, asset management firms have been trying to connect and embed e-wallets into asset management apps to improve service quality and increase experiences for users.
Meanwhile, real estate websites are cooperating with e-wallet service providers to be able to collect service fee more easily. However, since Vietnam is a cash economy and the proportion of people using credit cards remains very low, the integration will need time to show efficiency.
Analysts believe that changes in consumer behavior offer great opportunity for proptechs. Travel restrictions and social distancing lead to higher demand for digital platforms. This will prompt technology firms to develop platforms that connect buyers and sellers and ensure transparency in the real estate market.
Technological solutions can also help minimize costs and improve businesses’ profitability. According to experts, technological solutions improve performance in the real estate brokerage sector, as well as save time and costs for buyers and sellers. A ‘technological broker’ can serve 10 times more customers than a traditional broker.
The great potential of proptechs explain why they can receive investment commitments from investors, though the real estate market is stuck because of Covid-19 and many small firms have suspended operation.
Propzy has received $25 million worth of investment capital from Gaw Capital Partners, Softbank Ventures Asia and other funds. Hoozing has capital from Smilegate Investment (SGI), while Rever received $4 million from VinaCapital Ventures.
The State Bank of Viet Nam is planning to pilot a regulatory sandbox which would allow fintech companies to participate in providing some banking services starting from 2021.
As a promising digital economy, Vietnam has facilitated fintech development to penetrate deeper and faster into the world’s digital economy, especially in the post-COVID-19 period.