KUALA LUMPUR (March 12): Artificial Intelligence (AI) and digital technology are revolutionising the property industry, but implementing automated valuation models (AVMs) poses a challenge according to Arina Kok, partner, Climate Change and Sustainability Services, Ernst & Young Consulting Sdn Bhd at the 2024 Malaysian Housing, Urban Development and Property Summit that was held recently.
She said the industry is seeing advancements in data analysis, predictive modelling, virtual property and visualisation. Despite progress, she pointed out that rolling out AVMs remain challenging.
“AVMs require the economic factors to be in-built into the architectural designs and related processes. We need the architects as well as the planning and the economic factors to come in, side by side,” she explained.
Under new technology solutions, Kok stated that banks have advanced in assessing the physical and transition risks related to climate change, including loan default probabilities. She highlighted that banks are seeking sustainability reports and ESG performance scorecards under this area.
Source: EY Desktop Research
She also shared Generative AI use cases that can be implemented in the commercial property sector, from giving recommendations and assisting customers in retail to generating financial reports in funds-financial services.
Source: EY Desktop Research
The ‘Digitalisation and Sustainability – Driving the Future of the Property Industry and Urban Development’ session, which was moderated by Poo Ching Loong, general manager, Yes Boss Corporation, also had Ar Lillian Tay, vice-president, VERITAS Architects Sdn Bhd highlighting the use of digital technology in building the Saloma Bridge.
“Our Saloma Bridge project features such a complex form, and we used digital technology to rationalise all the building panels to one size. It’s only formed with one-sized panels, and we would never be able to do that if we didn’t have the technology that we have today: the parametric modelling,” she said.
While Tay acknowledges digital technology’s benefits for the property industry, she’s also concerned about its potential downsides, such as the listing of residential units on short-term rental platforms. She believes it could disrupt the city’s liveability, if not managed well.
On the affordable housing conundrum, Assoc. Prof. (Ind) Ar Sarly Adre Sarkum, Malaysian Institute of Architects (PAM) spoke about setting up a Tabung Perumahan Negara, a central fund aimed at building and redeveloping future low cost housing, with the possibility of contribution from property developers.
The 2024 Malaysian Housing, Urban Development and Property Summit is jointly organised by FIABCI Malaysia & KSI Strategic Institute for Asia Pacific and in association with the Economic Club of Kuala Lumpur.
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