ExaWizards and Mitsui Fudosan Realty Jointly Develop Rehouse AI Assessment to Instantly Calculate Estimated Contract Prices for Condominiums Using AI
〜Achieving High-Level Prediction Accuracy Based on Huge Number of Contracts Concluded by Mitsui Fudosan Realty, Which Boasts Largest Number of Properties Traded as an Agency in Japan〜
ExaWizards Inc. (Headquarters: Minato-ku, Tokyo; President & CEO: Ko Ishiyama; hereinafter, “ExaWizards”) and Mitsui Fudosan Realty Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President and Chief Executive Officer: Yasuhiko Yamashiro; hereinafter, “Mitsui Fudosan Realty”) are pleased to announce that they jointly developed Rehouse AI Assessment, a system to instantly calculate estimated contract prices for condominiums owned by individuals using AI and present such prices and that they opened the system to the public at the Mitsui Rehouse website operated by the latter on Monday, December 16, 2019.
☑︎ Circumstances under which the system was developed
In November 2016, at its website, Mitsui Fudosan Realty, which aims at allowing those who own a condominium to smoothly start the process of selling it and selecting a new one when they plan to change their residence, began to provide a service to enable customers to easily find an estimated contract price for the condominium they owned at any time. And through the recent joint development, the two companies can now provide more of the people who own a condominium with more accurate information by reforming the estimation algorithms for the previous system.
☑︎ About the new system
In the recently developed Rehouse AI Assessment system, artificial intelligence (AI) has learned a huge number of contracts actually concluded by Mitsui Fudosan Realty, which traded the largest number of properties as an agency in Japan for 33 consecutive years (*1), to calculate estimated contract prices for condominiums according to the location, grade, floor level, direction, and other attributes of units. The calculation has achieved high levels of accuracy: MER 4.89% for five prefectures in the capital area and MER 5.34% for the entire country, excluding the capital area (*2). The new system has successfully computed estimated contract prices for some 30,000 condominiums not only in the capital area but also in other 18 prefectures nationwide, where Mitsui Fudosan Realty develops Mitsui Rehouse business (*3).
(*1) The Mitsui Fudosan Realty Group traded the largest number of properties nationwide as an agency for 33 consecutive years from fiscal 1986 to fiscal 2018.
(*2) The median error rate (MER) refers to the median of error rates, which are obtained by dividing the absolute value of a difference (error) between the estimated contract price calculated through machine learning and the actual contract price by the actual contract price. The smaller MER is, the higher the estimation accuracy level is. Proving tests were conducted for properties for which contracts were concluded in the past without limiting their age to determine the above-quoted MERs. The figures are based on data available on November 1, 2019.
(*3) Hokkaido, Miyagi, Tokyo, Kanagawa, Saitama, Chiba, Ibaraki, Aichi, Gifu, Mie, Osaka, Hyogo, Kyoto, Shiga, Nara, Hiroshima, Okayama, and Fukuoka
☑︎ Outline of Rehouse AI Assessment
Based on the examples of contracts for properties actually traded in the past, the Rehouse AI Assessment system automatically presents an estimated contract price for the condominium owned by a customer on the customer page of its website and instantly provides information on the number of people who are considering purchasing a condominium in neighboring areas and so forth if the customer enters the name and unit number of the condominium.
System Name: Rehouse AI Assessment
Launch Date: Monday, December 16, 2019
Target Properties: Approx. 30,000 condominiums in 18 prefectures across Japan
Special Website: https://www.rehouse.co.jp/aisatei/
☑︎Outline of Companies
■Mitsui Fudosan Realty Co., Ltd.
Head Office: 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo
Representative: Yasuhiko Yamashiro, President and Chief Executive Officer
Date of Establishment: July 15, 1969
Capital: JPY 20 billion
Number of Employees: 4,243 (as of April 1, 2019)
Main Businesses: Real estate brokerage, parking lot business, car sharing
Address: 5F, Sumitomo Hamamatsucho Bldg., Hamamatsu-cho 1-18-16, Minato-ku,
Founded: February 2016
Representative: Representative Director & President: Ko Ishiyama
Business: Development of AI-enabled services for industrial innovation and
solving social problems
＜Contact details for this release＞
■PR Group, Planning Dept., Mitsui Fudosan Realty Co., Ltd.
■ExaWizards Inc. Public Relations Department