News roundup: APAC design and construction on the verge of an AI revolution, and more news

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For PropertyGuru’s real estate news roundup, AI is revolutionizing and transforming the design and construction of real estate development in Asia Pacific. In other headlines, APAC’s real estate investments increase in the first quarter of 2024, while a Corelogic report shows Australia’s migration hot spots and migration’s impact on the housing market.

Design and construction on the verge of an AI revolution in Asia Pacific

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

Asia Pacific real estate investments increase by 13 percent 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 percent 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 percent YoY increase, across the quarter.

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

Australia’s biggest migration hot spots and the impact on housing trends – Corelogic

Australia is slowly moving through an enormous (though temporary) spike in overseas migration. The ABS reports Australia’s population increased by 2.5 percent, or 660,000, in the year to September 2023. Its latest regional migration data reveals the areas with the highest migration levels through the 2022-23 financial year (FY23). This has been driven by a combination of internal migration (movement from one part of Australia to another) and overseas migration (arrivals and departures between Australia and other countries).

The Real Estate Conversation report shows the areas with the highest migration in Australia and explains how high migration levels impact on housing markets.

The Property Report editors wrote this article. For more information, email: [email protected].