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Real estate sector needs digital transformation for sustainable development: experts

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HCMC – The real estate industry has made changes over the past decade and new technology has affected the way property developers operate their businesses, with the success levels of realty firms being demonstrated through their digital transformation tempo, noted experts at the Houze Day 2020, held on December 12 in HCMC.

A report from BDO International highlighted that real estate is among the five sectors that came under huge pressure and had to change due to the Covid-19 pandemic. Accordingly, operators in this sector have to accelerate digital transformation to grow fast and sustainably.

Speaking at the event, Can Van Luc, chief economist at BIDV and a member of the National Financial and Monetary Policy Advisory Council, said that the property sector has been slower in adopting digital transformation than others. Property firms will gain many benefits if they speed up their digital transformation progress, as the types of economic systems have changed a lot, he added.

Specifically, businesses in the field could see a substantial reduction in management and transaction costs by 30-80%, as forecast by Mckinsey & Co, and would need to enhance their ability to approach the market, information as well as further cooperation deals. More business development opportunities related to proptech, the sharing economy, data analyzing and fintech would be opened up for property developers.

According to the BIDV chief economist, as banks have joined hands with fintech companies to set up their monetary business ecosystems, property firms have no choice but to adopt proptech in order to advance. At present, human resources with a low-tech background are the biggest hindrance to property firms. If this issue is addressed, property companies could gain competitive advantages. Only technology can enable a business to advance and make breakthroughs.

Other experts at the event said that property firms would be impacted by drastic digital transformation movements in the next few years, whether they want it or not. They would also encounter fierce competition in terms of product and service diversity. Therefore, forming their own business ecosystem is considered a strategic move to improve their competitive advantages and optimize costs and resources to retain customers.

Pham Lam, founder of the Houze ecosystem, said that as the on-demand economy would become a trend in the near future, the Houze Ecosystem is set to offer a host of closely-connected services on one platform to customers, aimed at helping them enjoy a better experience.

By Viet Dung

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