Lack of transparency and synchronous storage processes in market information systems and regulations on data transmission are significant challenges for the digital transformation of the real estate industry.
|Ho Chi Minh City. Photo: VNA |
According to economist Ta Van Thanh, information transparency is necessary in data digitalisation activities. The barriers that real estate businesses face today are mainly in the accuracy and clarity of data.
“Currently, it is very difficult for us to find suitable planning maps integrated on digital platforms. Among 63 cities and provinces, only Ho Chi Minh City has done this, creating favourable conditions for businesses,” said Thanh.
Meanwhile, real estate businesses must look for information via relationships and other ways to gain access to maps of other localities.
Information like these maps, according to Thanh, needs to be digitalised and centrally managed at the national level instead of individually at real estate companies or localities.
The pandemic has raised awareness about the role of digital transformation and data storage in real estate projects. Recently, digital technology has proven its advantages in promotion, connection, and increased interaction between investors and customers.
Since 2020, many real estate businesses have invested in online transactions sites, applying cross-platform technologies into their business.
In Vietnam, fewer than 60 companies in the field operate digitally, and 80 per cent of these are foreign-invested companies.
However, real estate businesses are also in of support from government policies. Thanh argued that the government needs to have a clear policy on the transparency and digitalisation of the real estate sector.
“These activities must be recognised by government authorities to avoid raising disputes and complicated procedures in transactions,” said Thanh.
According to the Vietnam Real Estate Association, social distancing has been severely affecting real estate businesses, mainly in residential development, hospitality, and retail. Their business had to halt or delay projects, while both demand and supply declined
According to Vu Quoc Viet Nam, marketing director for Dat Xanh Group, using technologies in real estate is an inevitable trend. However, investors and developers need to fully equip themselves with the necessary tools amid the digital transformation to develop in a sustainable manner. “Companies also need to review their working and operating processes, with a plan to reform the management apparatus in a timely manner to adapt to the market movement and ensure the highest efficiency,” Nam said.
Nguyen Thi Bich Ngoc - Managing director, Sen Vang JSC
Currently, the real estate sector has to address issues regarding legal procedures, the unpredictable pandemic, and economic recovery. Thus, the digital transformation becomes an inevitable trend.
Each business needs to actively plan its scenario to be ready to cope and adapt to those issues. In addition to responding to market changes, investors must study changes in customer and distributor tastes, focusing more on high-demand segments, especially affordable housing.
In the context of the digital economy, real estate businesses must apply advanced and innovative technologies in economic, social, and environmental development towards a sustainable future.
Trinh Tung Bach - Founder, Green Building Solutions
To achieve sustainable development in real estate, the government should have a transparent mechanism in digitalisation. Currently, many countries have strategies for the sustainable development of construction, with long-term orientation goals. Therefore Vietnam should keep up with its own goals.
Green real estate products have been increasing, with the advantages of higher selling prices, faster sales processes, and many other benefits.
As Vietnam has achieved much in applying technologies to urban development and the real estate industry, we need a more transparent management process and clear storage of information and real estate transactions.