How is big data and digitalization changing Vietnam’s real estate market?
Big data is changing real estate from inside out. Numerous site visits are no longer the first part of the buying or leasing process. Long before investors or companies set foot into the building, they’ll have reviewed a shortlist that uses data to match their requirements to its plus and minus points.
A building houses hundreds of separate pieces of data, making real estate investment decisions difficult. But by using sophisticated analytics tools, data scientists can individually analyze each data set to see how important these factors are in regard to the property’s price and attractiveness. Insight into matters investors may not have considered often arise, from the demographics of the area to key points of interest around a building such as schools, social amenities, and transport links.
Many property companies have recently introduced apps to develop and manage their projects. Do you think this trend will catch on and develop strongly? What opportunities and challenges does this trend present?
Property management is the maintenance, monitoring, and operation of real estate property. This applies to residential, commercial, and industrial properties being rented or leased to residents, businesses, or factories. Good property management raises the value of the asset, ensures that payments are received on time and in full, and keeps tenants safe and satisfied.
A property manager always has their hands full because of the plethora of responsibilities that come with the job. Juggling all of these tasks and responsibilities can be a challenge. Over the past decade, many property companies have developed property management software to help make the myriad tasks more manageable. Automation solves most of the problems that property managers struggle with on a daily basis, such as real-time access to information, improved communications, quick property inspections, reduced administrative work, online payments, securing sensitive data, and data analysis. We anticipate this will be one of the key trends over the next ten years.
What should property investors do to keep pace with the development of the digital economy?
Big data is becoming the norm in all companies, in the same way that they have an IT or an administration department. Companies that are not able to integrate big data will simply cease to exist in one or two economic cycles, losing the possibility to reposition themselves and monetize their data, either by improving their services or by selling knowledge.
With technology moving at a rapid rate and big data set to be a $103-billion industry by 2027, according to market researchers Wikibon, attracting high-quality data scientists and developing fresh algorithms that can provide top quality insights remain a priority for real estate.
Which real estate segment will be affected by the big data revolution?
One that will be strongly affected is supply chains and warehousing. According to JLL, the following are the likely benefits of big data as its impact begins to be felt across supply chains.
Enhancing predictions and planning
Major events in the year, such as New Year, Christmas, or Black Friday, can greatly alter the requirements of companies and retailers need additional capacity at certain times of the year. Being able to get a greater overview of demand is a major plus-point. More data means more responsive supply chains and less leftover stock.
Delivering goods more efficiently
Using data to improve efficiency is particularly important for warehouses and based on the final or last-mile of delivery. E-commerce companies can keep delivery vans moving when they can get a grip of real-time traffic information.
Reducing risks from the elements
Big data can help lessen supply chain risks from external factors, such as the weather. With more extreme weather events, the supply chain can be deeply disrupted. Mitigating this risk has become increasingly important for warehouse occupiers. Weather events such as the Usagi storm last year can massively disrupt the supply chain.
Source: Vietnam Economic Times