Foreign firms have been dominating Vietnam’s real estate service market which covers marketing, distribution, assessment, investment consultancy and management of property projects.
CBRE Vietnam, Savills Vietnam and Colliers have held up to 90% of the market while the rest goes to the handful of Vietnamese service providers such as Megagroup, Eden, Him Lam and VietRees.
Savills has been in Vietnam for 15 years, Colliers for 14 years and CBRE has achieved nine years, and all of them have their own advantages, the Saigon Tiep Thi newspaper said.
Vietnamese companies are considered to have advantages in understanding the home culture and habits, but they are still inferior to foreign companies which have many years of experience, plus good management technologies.
Bui Tien Thang, deputy general director of Sacomreal, was quoted by the newspaper as saying that property developers prefer using foreign services as domestic companies are not well-developed and there is no big domestic brand name in the field.
Service fee of foreign firms is often 30% higher than that of domestic companies even though the quality is the same, Thang added.
Savills Vietnam General Director Brett Ashton, however, admitted the necessity of keeping a keen eye on all arriving companies, especially Vietnamese companies, as they this will create fierce competition.
Other companies may damage the troika-like position in the Vietnamese real estate service market, including Knight Frank Vietna, Jones Lang LaSalle and Cushman & Wakefield, Ashton said. (Saigon Marketing)
Vietnamese
