2022 is the year of proptech businesses. In Vietnam, more and more proptech companies are receiving huge investments from global and trusted funds, making the real estate market an exciting destination.
In this article, let’s learn more about the second wave of proptech in Vietnam and how to grab your opportunities as a foreigner in the housing market!
Proptech trends in Vietnam
Propzy Vietnam has launched FIRE-Tech, a platform that offers a full range of real estate, financial, and insurance services.
Homebase is another well-known prop tech for its financial support methods for customers.
It specializes in tailored real estate investment schemes in which house purchasers only pay for a fixed number of shares and then move in right away. They plan to pay for the remaining shares later, once they have saved enough money.
Brokerage, investment, financial support, asset management and IoT, co-working space, virtual reality technology, valuation and analysis, and hotel management are among the 56 operational proptechs.
According to experts, the significant changes in the operating model of proptechs indicate the beginnings of the second wave of proptech (Proptech 2.0), which intends to construct a One-Stop-Shop-style service system.
Why is proptech thriving in Vietnam?
Meanwhile, real estate websites are collaborating with e-wallet service providers to make it easier to collect service fees. However, because Vietnam is a cash economy with a low number of individuals using credit cards, the integration will take time to become efficient.
According to analysts, changes in consumer behavior present a significant potential for proptechs. Travel constraints and social isolation increase demand for digital platforms. This would encourage technology companies to create platforms that link buyers and sellers while also ensuring openness in the real estate market.
Technological solutions can also help firms save expenses and increase profitability. According to experts, technology solutions boost performance in the real estate brokerage business while also saving buyers and sellers time and money. A ‘technology broker’ may service ten times as many clients as a typical broker.
Proptechs’ high potential explains why they may acquire investment commitments from investors even when the real estate market is stalled due to Covid-19 and many small enterprises have ceased operations.
How to capture your opportunity?
There are many ways to start owning real estate in Vietnam and a diverse pool of options to choose from. For example, foreigners can buy commercial or residential properties within your given quota (30% of any project). After purchasing, you can rent it out to make profits in the long run.
With cash readily available, you may immediately buy your property of choice. However, it’s not the case for most foreigners who’ll need bank support: Foreigners can’t apply for mortgages in Vietnam.
What is an alternative for these under-qualified overseas buyers? Homebase is a viable option. The company offers flexible ownership options for both local and international investors/buyers, helping you buy property with as low as 10% initial payment. Most banks in Vietnam require at least 30% even for local homeowners. Homebase is able to provide this high support rate thanks to the fact that it’s backed by some of the most known and prestigious global funds around the world: Y Combinator, Iterative VC, VinaCapital, and more.
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