Big Data Technology is Changing Vietnam Real Estate

Jones Lang LaSalle (JLL) has just published a report on the impact of Big Data on the Vietnamese real estate market over the past decade.

This unit said that big data has become a global phenomenon when used for all aspects of life in many developed countries and in Vietnam, the influence of Big Data on the real estate market is growing.

JLL analyzes that big data is currently changing the way the Vietnamese real estate industry operates from the inside out, in the direction of multi-functional integration.

The process of buying or renting real estate will no longer have to start with days of surveying the site and going on site, but instead will be about accessing a huge database to focus on the core goal.

Logistics real estate in the Vietnamese market is being strongly impacted by Big Data technology. Photo:JLL

Before they even set foot in a building, investors have a list of projects that fit their needs. For example, a building can contain hundreds of separate pieces of data, making investment decisions more difficult.

Using sophisticated analytics tools, data science can analyze each set of information individually to measure attractiveness and the factors that will influence property value.

Factors ranging from the demographics of the area to the density of locations, amenities around the building such as schools, social works and transport links are all being supported by Big Data with rapid information.

According to research firm Wikibon, in the context of rapid technological development and the data industry valued at up to $103 billion, attracting high-quality data scientists and developing new algorithms to provide quality reports remains a top priority for real estate companies.

JLL assesses that one of the real estate segments that will be strongly impacted by the data revolution in the Vietnamese market is logistics real estate, warehouses - an important link contributing to the success of the e-commerce boom. This unit points out 3 major interactions of Big Data technology on logistics real estate.

The firstBig Data is involved in the process of forecasting supply and demand. Major consumer events during the year, such as the holidays, Christmas or Black Friday, contribute to seasonal changes in tenant demand. Having a more comprehensive view of market demand is a big plus for businesses operating supply chains and warehouses. More data means a more flexible supply chain and less inventory each season.

Monday, Big Data helps increase delivery efficiency. A prime example is using data to improve delivery scheduling and routing, which is a great way to cut costs, especially for last-mile deliveries. E-commerce companies can easily schedule deliveries to avoid congested or flooded routes with real-time traffic data.

Tuesday, Big Data reduces the natural impact on the logistics real estate industry. Big data can help reduce weather risks. With severe weather events that can severely damage certain types of factories, or force factories to shut down for extended periods of time, mitigating weather risks has become more important for warehouse tenants, because without proper preparation, unexpected weather events like Typhoon Usagi in 2018 in Vietnam have the potential to disrupt many links in a business's supply chain.

In addition, this unit added, Big Data also has a profound impact on the process of market analysis, digitization of background data, real estate trading, consumer behavior research for residential, office, resort real estate... in the Vietnamese market.