The Philippines needs to strengthen its AI capabilities first, plus further updates

For PropertyGuru’s real estate news roundup, the Philippines needs to strengthen its artificial intelligence (AI) capabilities first before establishing regulations for the use of the technology. In other news, the Vietnamese real estate market is signalling the end of a prolonged downturn, with notable signs of recovery in profitability. Lastly, residential launches across India’s top real estate markets fell by 2 percent in the first three quarters of 2024 compared to the same period in 2023, except for luxury units priced above Rs 2.5 crore.

Philippines must strengthen AI capabilities

​​The Philippines must focus on strengthening its artificial intelligence (AI) capabilities before establishing regulations for the use of the technology, an expert said.

“I don’t think that’s a conversation we should be having because we don’t have any AI capabilities as a country yet,” Ideaspace Ventures Executive Director Jay Fajardo told BusinessWorld.

“We shouldn’t be exerting too much of our energy trying to put together regulatory frameworks for something that doesn’t exist. It doesn’t make any sense,” he added.

Mr. Fajardo said the government must prioritize supporting AI practitioners, startups, and technologies. “Let’s focus on building our strength in AI first then we can start thinking about ethical use,” he said. “Everything’s becoming AI-powered, so it’s not a question of should we, but can we and when should we do it,” Mr Fajardo added.

The Philippines has no regulatory framework for the use of AI.

Realty stocks see signs of recovery in Vietnam

The Vietnamese real estate market is signalling the end of a prolonged downturn, with notable signs of recovery in profitability. However, according to VietnamPlus, the pace of revival remains measured due to sluggish sales and limited improvements in consumer incomes.

Recent developments in Dong Nai province represent the Government’s effort to unlock the sector’s potential. The approval of adjustments to the 1/10,000-scale master plan has paved the way for the phased planning of Aqua City, a flagship project from Novaland (NVL).

The move reflects broader governmental support for addressing the challenges facing real estate developers. The stock market responded positively to these developments.

NVL shares, buoyed by the regulatory progress, have defied broader market trends, catalysing gains in other real estate stocks. The market viewed this as a vote of confidence in the sector’s ongoing support rather than an isolated success for major developers.

Despite these bright spots, the industry faces persistent challenges. Inventory levels remain elevated due to slower sales as consumer demand lags. Even as lending interest rates drop to record lows with some banks offering sub-7 percent loans, economic headwinds have tempered buyers’ confidence.

Indian real estate developers’ luxury push continues even as launches below Rs 2.5 crore slow down

After growing at a robust 52 percent annually since the COVID-19 pandemic, residential launches across India’s top real estate markets fell by 2 percent in the first three quarters of 2024 compared to the same period in 2023.

This marks the sector’s first slowdown since the post-2020 boom, with just one ticket size bucking the trend – luxury units priced above Rs 2.5 crore.

The growing premiumisation of India’s residential real estate sector amidst easing demand is also evident in sales, which fell by 3 percent year-on-year between April and September 2024, while the average ticket size of units sold grew by 23 percent, an analysis of data from Anarock showed. In the Delhi-NCR market, where demand for luxury housing is especially pronounced, sales fell by 0.6 percent while the average price of units sold surged by 56 percent.

The Indian Express reports that the first signs of a slowdown in residential real estate mirror recent concerns around waning urban demand across sectors, from automobiles to consumer goods. Major developers have announced plans to transition away from affordable housing as they no longer see a business opportunity.

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