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,