According to an article on Forbes, Ho Chi Minh City – the former Saigon – is the second-most popular market in Asia for investment into residential apartments in 2017. In a different view, Numbeo ranks Vietnam’s market as one of the most unequals “Price to income Ratio” in the world at the 4th position, just after Hong Kong’s (3rd) and before Thailand’s.
Let’s chat with Phat Nguyen, co-founder of GachVang.com, a black horse in Vietnam’s growing real estate market, who try to be a Zillow of Vietnam with DinhZaDi, a price estimation tool for Vietnam’s fragmented and un-predictable property market price.
Can you share some of the overview of real estate market in Vietnam? How big is it? Any comparison with other markets in SEA, or most developed market like Singapore’s?
Real Estate in Vietnam takes big sector in the GDP up to 13% of the nation.
RE market is always the last spoken and tool for investors to invest in. As Vietnam is an emerging market and there are plenty of room for aggressively growth for infrastructures, commercial and residential. Vietnam doesn’t need to compare with other in SEA but it is amongst the fastest growing economy in SEA with Singapore, Malaysia, Philippine, etc.
Any insights or statistics of house/land buying behaviors? What are the most popular segments of properties now? Any recommendation for real estate developers?
From our research on trends was conducted by gachvang.com’s DinhZaDi®, that housing is in tremendous demand, especially for “affordable house” which is in range from US$50k to less $80k with demographic of young single/family with extra income.
gachvang.com’s research and statistics were given that in Vietnam with major cities like HCMC and Hanoi would experience a shortage for “affordable house” but over supply for high/luxury properties. So It comes to the recommendation that Real estate Developers would make a big success with the affordable house in Vietnam if they are investing in right track.
How did you come up with the idea of gachvang.com and DinhZaDi®? How is it different from other big and well-established players like Batdongsan.com or MuaBan.net?
Based on our experience in the RE industry we would see there is the future for Vietnam to be more transparent and a place where you can easily to invest in RE with your finger clicks. That is the idea. To do that we need a “Zillow for Vietnam” where we build up from our ambitions to make the first of its property listing website with the first nationwide residential valuation algorithm for everyone who are interested in property could check their property as a referent price before they do any transaction. gachvang.com is not simply a listing website but we are a data driven technology for property valuation & price trend online in Vietnam.
What are the critical points of building a good online business in Vietnam?
There are many but better to start with people, proper operation, know-how on local business senses and also the support of funds to deal with a long term investment for online business.
How does DinhZaDi® calculate price or land or house? How many properties do you have?
DinhZaDi® does the calculation for residential properties including land and house with our proprietary valuation algorithm for all land and house data across Vietnam. We could not disclose number but it is dramatically growing.
How do buyers and sellers know about the correctness of price given by gachvang.com?
Our valuation gives to buyers/sellers the confidence of correctness up to 97% based on our proprietary valuation algorithm. We believe that if gachvang.com is not right then who is right about Vietnam’s property valuation?
The most expensive property prices according to DinhZaDi® in last 3 months?
Lê Thái Tổ, Phường Hàng Trống, Quận Hoàn Kiếm, Hà Nội – 1.142.857.000đ/m2 (±50.000USD)
Bảo Khánh, Phường Hàng Trống, Quận Hoàn Kiếm, Hà Nội – 1.071.428.000đ/m2
Nguyễn Biểu, Phường Quán Thánh, Quận Ba Đình, Hà Nội – 750.000.000đ/m2
- Ho Chi Minh city
Nguyễn Huệ Phường Bến Nghé Quận 1 Hồ Chí Minh – 1.058.201.000/đ/m2 (±46.600USD)
Lê Lợi, Phường Bến Nghé, Quận 1 Hồ Chí Minh – 765.306.000 đ/m2
Mạc Thị Bưởi, Phường Bến Nghé, Quận 1 Hồ Chí Minh – 653.283.000 đ/m2
What is Gachvang business model? Any kind of transaction can be made online?
We don’t provide making online transaction as it belongs to buyers/sellers out of our platform. We online provide a property listing platform with our valuation engine to help them to do that better. We aim to make property simple.
Our business model is simple to provide to our advertisers a place to do their branding and generating leads for their business. We are suitable not only for agencies but also RE Developers with our targeted advertising banners.
How do people know about Gachvang? And your marketing approach?
We don’t spend in traditional marketing with ton of money spending on SEO, or PR but we are curating our way to work with businesses, developers, people in the industries and media to share our common interests. That are how people know about gachvang.com.
What are the key cities of real estate market in Vietnam? and now where are you focusing on?
There are 8 big cities in Vietnam but we count HCMC, HN are two major cities we are focusing on.
Anything about your team now?
Our team is mostly Vietnamese engineers, data scientists, etc with a good support from our founders in Vietnam and Singapore. I could say we are a strong team in our fields.
And the founding team?
We are Phat Nguyen, is Chief Operations Officer and oversees the daily operations of the company. Over 5 years operating management experience. Ex-Head of Product for YummyPin/eber.co (Singapore). And Eric Teng, is Chief Technology Officer and is responsible for overall product development and DinhZaDi®. Over 10 years web development experience. Ex-CEO of MobTwo (web development and outsourcing)
Note: And the Singaporean Co-founder/CEO is a regional banker who stays behind the scene.
What are your funding status and next steps?
We are backed by a consortium of angel investors in Singapore with $500K. Next steps we are looking for our new growth and new fund for our next expansion stages.