2022 is the year of proptech companies. 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 seize your opportunities as a foreigner in the housing market!
Proptech Trends in Vietnam
Propzy Vietnam has launched FIRE-Tech, a platform that provides a full range of real estate, financial and insurance services.
Home base is another well-known prop technology for its customer financial support methods.
It specializes in tailor-made real estate investment plans where home buyers pay just a set number of shares and then withdraw immediately. They plan to pay off the remaining shares later, when they have enough money saved.
Real estate, investment, financial support, asset management and IoT, co-working space, virtual reality technology, valuation and analytics, and hotel management are among the 56 operational proptechs.
According to experts, the significant changes in proptech’s business model indicate the beginning of the second wave of proptech (Proptech 2.0), which plans to build a One-Stop-Shop-like service system.
Why is proptech thriving in Vietnam?
Meanwhile, real estate websites are partnering with e-wallet service providers to facilitate service fee collection. However, since Vietnam is a money economy with a small number of individuals using credit cards, the integration will take time to become efficient.
According to analysts, changes in consumer behavior offer significant potential for proptechs. Travel restrictions and social isolation are increasing the demand for digital platforms. This would encourage tech companies to create platforms that connect buyers and sellers while opening up the real estate market.
Technology solutions can also help companies cut costs and increase profitability. According to experts, technology solutions improve real estate performance while also saving buyers and sellers time and money. A “technology broker” can serve ten times as many clients as an average broker.
The high potential of Proptechs explains why they can acquire investment commitments from investors even when the real estate market comes to a standstill due to Covid-19 and many small businesses have ceased operations.
How to seize your chance?
There are many ways to own real estate in Vietnam and a diverse range of options to choose from. For example, foreigners can purchase commercial or residential properties within your specified quota (30% of each project). After purchase, you can rent it out to make a profit in the long run.
With cash readily available, you can immediately buy your property of choice. However, it is not the case for most foreigners who need bank support: foreigners cannot apply for mortgages in Vietnam.
What is an alternative for these underqualified foreign buyers? Home base is a viable option. The company offers flexible ownership options for both local and international investors/buyers, allowing you to purchase real estate with an initial payment of only 10%. Most banks in Vietnam require at least 30%, even for local homeowners. Homebase can provide this high support rate thanks to the fact that it is backed by some of the most well-known and prestigious global funds: Y Combinator, Iterative VC, VinaCapital and more.
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