The market is witnessing the rapid growth of the residential sector with the launch of several new township projects as well as upscale apartments. Along with the high growth rate, the advanced residence standards have urged investors to further focus on the management and operation of the projects, besides profitability. This leads to competition among property management service providers, forcing them to increase professionalism and offer advanced services to stand out.
Criteria for professionalisation
Property management is essentially the process of operation, control, and oversight of real estate as used in its most broad terms. This is much akin to the role of management in any business. Besides involving daily management, including security, sanitary tasks, landscaping, and maintenance as well as physical capital assets that are acquired, property management is responsible for accountability, financial planning, and risk administration harmonised with investors and the administrative board’s demands.
After several years of familiarising themselves with the concept of property management, developers now command a solid grasp of the true benefits of property management provided by well-known brand names and reputable international corporations with ample localised experience. Not only ensuring safety and satisfaction for residents, property management services also play a meaningful role in increasing business asset value and helping shape future opportunities.
For projects in the finalisation phase, the contribution of a professional property management agency is highlighted by reduced design amendment fees and giving developers an accurate cost estimation. In the handover phase, a trustworthy property management brand could increase buyers’ belief and put customers in a buying mood, thus boosting sales and acquisition. Several investors agree that international property management firms helped them appreciate the value of maintaining a professional management unit of their own because of the gains in long-term efficiency and the capability to resolve arising problems in a reasonable manner, especially when it comes to disputes among parties.
In Vietnam, the property management market was affected by environmental issues in neighbouring countries, which was resolved in an amicable and mutually acceptable manner. The industry itself and its operation was legalised in Circular No.02/2016/TT-BXD of the Ministry of Construction, which centres on the quality of the operator’s human resources, working permits, and training certification.
Upgrade and optimise
At present, applying technology to improve management performance is a global trend, which generally aims to obtain transparency in management activities, including operation history, information, and charges, among others.
At Savills Vietnam, Savills Property Management Software (SPMS) is a management technology offering quick and convenient access to information for both the investor and the administrative board, as well as minimising incidents in human resources supervision. While property management apps have been quite popular in neighbouring countries such as Singapore or Thailand, the majority of Vietnamese residents still prefer the traditional way of directly contacting the building’s management board.
Nevertheless, due to the abiding vision of full transparency and seamless operation, professional agencies like Savills will undoubtedly utilise the apps eventually.
Besides highly-trained personnel and international-quality leadership to respond to customers’ demands, leading agencies like Savills also offer dedicated services to support developers as well as customers, typically called the “Resident Solution.” With a wide range of practical services comprising of periodic inspections and maintenance of the mechanical and electrical systems, fixtures, fittings, furniture, and all systems in general, Resident Solution also goes beyond clients’ expectations with services like damage alerts and 24/7 emergency support.
When putting the above maintenance programmes into operation at a series of high-class residential areas, such as The Estella and Xi Riverview, Resident Solution not only ensures the quality, but strictly controls human resources, which leads to a full security warranty.
Moreover, this service proves to be the best-fitting solution for buy-to-let investors, a trend that has become exceedingly popular in recent years as it helps keep the assets’ quality.
Savills’ recent surveys show a strong demand for lasting investment in buy-to-let due to stable yields and value. In reality, a great number of apartment owners and investors in Ho Chi Minh City are coming from other cities and provinces. This all contributes to a growing need for reliable and trustworthy management agencies to handle all related issues, such as management, maintenance, and security. This demand is becoming extremely urgent and is expected to soar in 2018 and beyond.
By Tran Minh Ai
(Source: Vietnam Investment Review)