Navigating AI in Today’s Property Market
There’s no question about it: Artificial Intelligence (AI) is redefining how we search, value, and transact property. Whether it’s forecasting the next growth suburb, staging homes virtually, or scanning millions of data points – AI is accelerating decisions that once took months of research.
Whilst AI brings speed, efficiency, and scale, it’s also raising new challenges around accuracy, transparency, and trust.
Take the suspicious change in property marketing as just one example:
- Terms like “Hamptons-style” are now casually applied to any room with white paint, while “blank canvas” often translates to a dilapidated shell.
- According to a recent report, over 34,000 listings on realestate.com.au use the word “charming”, and more than 10,000 use “cosy” – often AI-generated euphemisms that gloss over serious flaws like poor lighting, outdated layouts, or lack of space.
REINSW President Thomas McGlynn summed it up well:
“If you’re relying solely on AI for things that generally take some creative thinking, you’re at risk of sounding like everyone else – and potentially misrepresenting a property.”
This tension sits at the heart of AI’s role in real estate: as powerful as the technology is, it can’t replace local knowledge, human intuition, or deep market experience. In a market as dynamic – and high-stakes – as Australian property, those qualities remain more important than ever.
Finding the Hidden Gems Before the Crowd
AI is rapidly improving the way investors and home buyers identify high-potential suburbs. Platforms like Archistar and PropTrack use AI to scan planning data, infrastructure announcements, and buyer behaviour to forecast emerging hotspots.
PropTrack, CoreLogic, and startups like Archistar use AI to identify growth corridors and underdeveloped lots. According to CoreLogic, suburbs like Austral and Box Hill in NSW were flagged by AI-led tools in 2021, two years before they saw double-digit annual growth in 2023-24.
Your advantage lies in the fact that whilst AI might flag growth suburbs, buyer’s agents help you secure the right property within those areas – filtering out high-risk streets, flood-prone zones, or properties with poor design fundamentals. AI sees potential; we see pitfalls before they cost you six figures.
Valuations That Go Beyond Surface Comparables
AI valuation tools like CoreLogic’s AVMs, Zillow’s Zestimate, and NAB’s property insights engine are helping lenders and buyers get real-time property value estimates using thousands of variables – from school proximity to solar orientation.
NAB, in its 2024 investor briefing, reported that 92% of residential valuations over $2M now use AI-assisted modelling in conjunction with human appraisals. These models consider factors like solar orientation, future zoning changes, and proximity to noise sources.
This serves as a strak contrast to the adjacent infographic published by Deloitte in 2020 – which captures the initial precautionary adoption of AI that has been completely abandoned today.
As your buyer’s agent, I don’t rely solely on valuations. I overlay that data with local knowledge, architectural insight, and direct engagement with agents and vendors to ensure you don’t overpay – or miss a rare opportunity due to algorithmic blind spots.
Off-Market Access Will Never Be Algorithmic
AI can scrape portals, price trends, and even sentiment – but it can’t access the deals that never get listed. According to a 2024 McGrath Report, nearly one in three prestige property transactions in Sydney’s eastern suburbs are conducted off-market – with that figure rising to over 50% in tightly held streets or trophy home segments.
- In late 2024, a buyer I represented secured a home in Balmain weeks before public listing was able to make it online. AI didn’t find that deal – relationships did.
Buyer’s agents unlock private networks, whisper listings, and vendor conversations that never touch a platform. No algorithm replaces human trust.
AI Can’t Negotiate – But I Can
AI doesn’t understand urgency, emotion, or shifting vendor motivations. It doesn’t pick up on a seller’s hesitations or an agent’s tells.
Artificial intelligence can analyse data and predict trends, but it lacks the human touch essential in high-stakes negotiations. According to a Worldmetrics study, research indicates that 85% of negotiations are influenced by emotional factors, such as trust, rapport, and the ability to read non-verbal cues.
For instance, in Sydney’s competitive property market, a seller’s subtle hesitation or a change in body language can signal flexibility on price or terms. These nuances often go unnoticed by AI but are crucial for securing favourable deals.
Virtual Staging Changing First Impressions
Sellers are using AI in clever ways, and buyers need to stay sharp. Companies like Valmont Group and RoOomy use AI to create photorealistic virtual staging – furnishing and decorating empty homes digitally to maximise appeal.
A U.S. study found virtually staged homes sell 73% faster and for 6 – 10% more than un-staged equivalents.
As your buyer’s agent, I help cut through the polish – identifying what’s cosmetic and what’s structural, so you know exactly what you’re buying.
Predictive Maintenance & Smart Property Management
AI is also being used after the purchase. In buildings across Singapore, New York, and now parts of Sydney, AI-driven platforms monitor heating, cooling, and energy systems to detect faults before they happen – saving owners thousands in reactive repairs.
In build-to-rent and luxury developments, this technology is becoming standard – something buyers should be aware of when assessing long-term costs and property appeal.
Exciting Breakthroughs in the AI world
AI is revolutionizing property marketing through virtual staging. Companies like Valmont Group use AI-generated imagery to furnish and decorate homes digitally, making listings more appealing to potential buyers.
Australian real estate agency Barry Plant introduced “Grace,” an AI-powered chatbot designed to interact with prospective buyers and tenants, craft listing descriptions, and respond to inquiries 24/7.
Similarly, the appointment of Alice Ing, the Real Estate Institute of NSW’s (REINSW) groundbreaking AI board advisor, brings an IQ of 155 and unparalleled real estate expertise to the table. Operating within the ChatGPT system, Alice delivers real-time data analysis, multilingual support, and ethical oversight, revolutionising boardroom decision-making and setting a new standard for AI integration in Australian governance.
