AI Transforming APAC Real Estate Landscape

According to real estate firm Savills, markets such as Hong Kong, Singapore, Japan, Korea, China and India are embracing technology rapidly

Artificial intelligence (AI) and machine learning are beginning to transform how Asia Pacific real estate development projects are designed, built, and managed, according to property consultancy Savills.

Real estate is often considered to lag other industries in its use of technology, but this is changing fast, especially in Asia Pacific, where an abundance of new construction offers the opportunity to test innovations.

Will Forwood, managing director at Merx, a Savills company specialising in project and construction management, says, “AI and machine learning are starting to become embedded in the design, construction, and project management process for the real estate industry. Technology can help us create better buildings, produced more efficiently and sustainably.”

At present, mature markets such as Hong Kong, Singapore, Japan, and Korea, as well as the large regional markets of China and India are embracing technology faster than the emerging markets of Southeast Asia. Generative AI can produce remarkable artwork and images but is not yet used to create buildings and interiors without human input. However, it is becoming more and more important in the design stage of buildings.

 AI and machine learning are starting to become embedded in the design, construction, and project management process for the real estate industry. Technology can help us create better buildings, produced more efficiently and sustainably.

Will Forwood, Managing Director at Merx

APAC Real Estate Investments Increase in Q1 2024

Asia Pacific was the only region globally to see growth in commercial real estate investment in Q1 2024, with investment volumes reaching USD30.5 billion. According to data and analysis by global real estate consulting firm JLL, commercial real estate investments rose by 13% year-on-year (YoY) in Q1 2024, marking the second quarterly YoY increase after seven consecutive quarters of decreasing volumes.

North Asia led the growth of the region, with Japan emerging as Asia Pacific’s most active market, with an investment of USD11.5 billion, a 29% YoY increase, across the quarter.

South Korea attracted USD4.3 billion in investments, a significant 73% YoY increase, with offices dominating the sector for investment given its stable fundamentals, low vacancy rates, and bullish leashing demand. Singapore (USD2.2 billion) recorded a 14% YoY growth in investments owed to capital allocation pivoting towards retail assets, which have a positive rental outlook and yield spreads.