Proptech, a relatively new field, has seen exponential growth and investment in the last few years. Proptech is a multifaceted field that not only supports occupiers but is starting to play a fundamental role in the property development process.
Proptech has received considerable investment in the Asia–Pacific region in the last decade. According to ESCP Business School, the sector received investment of less than US$1 billion in 2010; however, in early 2022, investment reached US$14 billion.
Developers Invest in Proptech.
In 2020 and 2021, the global capital investment into proptech was over US$10 billion/year. Leading Asian markets include China, Hong Kong, and Singapore.
Ms Giang Huynh, Associate Director of S22M, Advisory Services at Savills Viet Nam, assessed that proptech is an increasingly useful tool for developers. It supports them throughout the project development process and ensures informed decision making, optimises costs, and maximises potential rewards.
Giang commented: "Proptech solves three major issues for developers. It ensures information accessibility, secure transactions for end-users, and property management and operational optimisation. In the current market, investments in the proptech field are mostly poured into applications for end-users and management-related services. For example, proptech applications often cater to building utility management, repairs, and customer service within residential or commercial properties.”
For example, Savills utilises its own app, Property Cube, within many of its managed properties. It allows tenants to book utilities, request services, pay fees, and browse other residential and commercial properties on the market. For the property management teams, it allows for streamlined customer service provision and the monitoring of resource use. It not only creates a pleasant customer experience but also allows management teams to work towards energy, water, and carbon savings.
Read more: Buildings that know what you want and when
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Developers Invest in Proptech.
Opportunities for Proptech in Viet Nam
While the market currently focuses on end-users, there is enormous potential for proptech to become more deeply involved in the project development process.
“Proptech tools allow developers to identify prime locations, plan interior layouts and understand the market before development even starts. From an operational perspective, proptech plays a huge role in optimising costs and saving energy and water. Increasingly, we will see investors and developers utilising proptech in more diverse ways,” Giang added.
In terms of information accessibility, digitisation and the development of big data technology means that information is increasingly accessible and affordable. However, in Viet Nam, many information platforms lack transparency.
Giang, an expert in the proptech field, said: "There is a huge opportunity for platforms that provide transparent and reliable information because this data enables developers and investors to make informed decisions. We at Savills Viet Nam understand this. We have utilised our expansive database and the latest data science technology to cater to the needs for quality research. Through our innovative reporting platform, S22M, we deliver comprehensive, customisable, and interactive dashboards for investors. We inform decisions with key performance metrics."
As real estate is considered a key investment channel in Viet Nam, there is enormous potential for proptech. As Viet Nam’s property market is diverse, with active residential, commercial, industrial, and hospitality markets, the application of proptech is equally wide.
Conclusion
S22M is the latest business line by Advisory Services. Our team delivers bespoke interactive reports with customisable data that maximises outcomes and minimises risks. Contact Giang or the S22M team.
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