Vietnam’s property slump hits PropertyGuru’s revenue

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Hi there,

There’s plenty of research saying that buying a house will be difficult for millennials and Gen Z. Current property prices are said to be unaffordable for younger generations.

In addition, the availability of affordable properties is unable to meet market demand. Do these findings resonate with your experience?

In Vietnam, the property market is in a slump as real estate developers are facing financing pressure due banks tightening their credit policies.

This decline has also affected the financial performance of PropertyGuru, the Southeast Asian real estate listings portal. In its latest results for the first quarter of 2023, the company’s revenue growth in Vietnam decreased by 34% year on year.

PropertyGuru attributed this slowdown to the Vietnamese government’s efforts to cool the real estate market, and said that addressing these measures will be the company’s main challenge in the immediate future.

In this week’s Big Story, my colleague Simon dissects PropertyGuru’s Q1 2023 financials and how the market conditions in which it operates affect its business.

Meanwhile, in the Hot Take, I examine the increase in electric vehicle (EV) sales on Indonesian ecommerce firm Tokopedia’s platform, in line with the rising adoption of EVs in the country.

— Jofie

THE BIG STORY

PropertyGuru looks past slowing revenue growth in Q1, talks up AI and M&A

Image credit: Timmy Loen

The proptech company’s revenue in the first quarter of 2023 was 16% higher than a year ago, but its adjusted EBITDA plunged by 60%.

THE HOT TAKE

Tokopedia sees momentum in EVs as sales grow

NEWS YOU SHOULD KNOW

FYI