China Property Developers Deploy AI as Sector Seeks New Growth Engines

(Yicai) Dec. 19 -- Despite the prolonged downturn in China’s property sector, some real estate developers have begun applying artificial intelligence across their operations, with AI technologies increasingly benefiting every stage of the business, from land investment to after-sales services.The adoption of AI reflects developers’ efforts to find new growth drivers and improve efficiency amid challenging market conditions. Industry insiders said to Yicai at a recent real estate AI forum that AI’s vertical applications are already penetrating core business processes and are approaching a tipping point.At the forum, technology heads from several leading developers said AI has been deployed in investment analysis, land acquisition, customer research, product design, construction, marketing, and customer services. Vertical AI applications in the property sector are now on the verge of rapid expansion, they said.“One of our projects used AI technology before its launch this year to precisely screen target customers and carry out marketing activities,” a senior executive from a top five Chinese developer said at the forum. “Through this approach, about 1,700 units were sold, and the boost to sales was very evident.” The executive added that given the clear value generated by AI-driven marketing, the company is willing to continue investing heavily in such technologies.Bu Shengdong, general manager of the digital construction center at Greentown China, said the company’s business units are eager to use AI tools. Greentown has already rolled out applications such as smart wearable badges for staff, AI-powered marketing systems, and an AI-based drawing cloud platform, and may significantly increase investment in AI-assisted design next year.Zheng Yi, assistant general manager of the digital intelligence development center at Yuexiu Property, said employees at the company have jointly developed more than 2,500 AI assistants. Yuexiu has also set up dedicated project teams to implement AI applications across marketing, construction, commercial operations, property management, and office functions.“With the rapid expansion of vertical AI applications, real estate developers’ organizational structures and operating models will undergo major changes,” a senior asset management professional at an East China-based developer told Yicai. Consumers’ home-buying decisions, price negotiations, renovation choices, and asset preservation strategies are also likely to be reshaped by AI, the person said.The second-hand housing market is expected to see greater differentiation as well. Older properties that cannot undergo intelligent upgrades may face faster depreciation and be phased out more quickly, the person added.Real estate is a massive industry closely tied to the broader economy and people’s livelihoods, and every link from planning and design to development, construction, marketing, and community services holds significant potential for intelligent upgrading, said Zhong Junhao, secretary-general of the Shanghai AI Industry Association.In certain specific scenarios, AI performance is already sufficient to partially replace existing professional roles, Zhong said. “This is not alarmist rhetoric, but a realistic reflection of the productivity leap brought about by technological progress,” he added.Editors: Tang Shihua, Emmi Laine