How does ChatGPT affect the real estate market?

Ms. Duong Thuy Dung, CEO of CBRE Vietnam, said that the limits of this technology cannot be assessed yet, but the benefits of ChatGPT are huge. Because, although it is in its early stages, ChatGPT can answer users' questions with high accuracy.

AI in the real estate market is no longer a new concept but some major US corporations have used AI in determining property values.

In Vietnam, for service and brokerage activities in the real estate market, ChatGPT can help save time in synthesizing information and providing market summaries. Brokers can also use ChatGPT to reach new customer groups by using ChatGPT to understand customer needs. Without ChatGPT, a broker may have to spend several days, even months to synthesize the necessary information.

How does ChatGPT affect the real estate market? - 1 — ChatGPT is expected to provide great support for real estate research and trading. (Illustration photo)

Sharing the same view, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA) also mentioned ChatGPT as an effective support tool in issuing land price lists.

Mr. Chau analyzed that Vietnam needs a national database on land prices using artificial intelligence (AI) and ChatGPT updated in real time, connected to the population database according to Project 06, synchronized and unified with the national large database (Big Data) to support the issuance of land price lists.

He said that with artificial intelligence, ChatGPT will replace humans to perform a huge amount of survey work, compare and contrast data in just a moment. The State can immediately know the average land price index in any area, determined by the average of actual transaction prices of land with the same purpose of use transferred on the market through statistics in an area and within a certain period of time. With the help of high technology, the State can control real estate prices, land prices 24/7 to build policy mechanisms or have timely and effective solutions.

Mr. Tran Ngoc Van, a real estate broker in Hanoi , said that ChatGPT has helped him a lot in writing advertisements for real estate products with answers beyond his expectations. The more detailed his requests, the better the advertisement this super artificial intelligence tool will create.

For example, when asked to write an article advertising a 2-bedroom apartment with an area of 60m2 in Cau Giay District (Hanoi) using the PAS formula (a familiar formula in content marketing), this tool met the requirements very accurately in terms of form. The words used in the article were very reasonable, beyond expectations.

“ I am not good at writing, so it takes a lot of time to come up with ideas for real estate advertising articles. However, when using ChatGPT, it only takes me a few seconds to create an advertising article and then edit it with a few sentences to be able to post it on any platform ,” Mr. Van shared.

However, experts also warn that ChatGPT is not without risks. Ms. Duong Thuy Dung analyzed that information and accuracy of information are extremely important, especially in a sensitive market like real estate. A person can use ChatGPT to synthesize basic information, but to make a judgment with in-depth understanding, practical experience is needed.

Additionally, ChatGPT's aggregate database currently only contains information up to 2021. Therefore, ChatGPT's effectiveness for a time-sensitive market like real estate may be minimal due to outdated market information.

In addition, relying on information from an AI like ChatGPT is dangerous and misleading because AI is effective within the scope of its programming, but that does not mean that AI is error-free, and can even give false information. Therefore, users need to be alert and have a lot of experience to recognize the loopholes and errors in the results, otherwise the errors can lead to negative consequences.

Another thing to note is that ChatGPT cannot be applied to specific consulting services such as project development consulting and feasibility studies, because these consulting services require specialization for each land plot, each project, each location and each product structure.

According to Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate Trading Floor, ChatGPT's answers are based entirely on past data. Therefore, questions related to current or future real estate investment trends cannot be answered by this tool. Or questions related to market prices, this tool cannot answer accurately either.

Chau Anh

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