Industry urged to adapt to rise of smart technologies
Australia’s property development industry faces significant challenges – and opportunities – as it adapts to the rise of smart technologies, according to a new study.
The report, published by Urbis and NBN Co, warns that without decisive action, developers risk falling behind in delivering efficient, future-ready communities.
Drawing on input from nearly 200 professionals across private development, technology, government, and industry groups, the report finds that large-scale adoption of digital technologies – such as Internet of Things (IoT), artificial intelligence, and advanced analytics – remains rare in Australian projects. Nearly half of respondents said smart integration is uncommon, citing unclear returns, high upfront costs, and fragmented collaboration as key obstacles.
For the property sector, the implications are clear: developers who fail to embrace smart solutions may face higher retrofit costs, operational inefficiencies, and missed opportunities to enhance liveability and value in their projects. The report, Accelerating Smarter Development, also details how smart development can improve everything from safety and transport to energy management and emergency response, offering almost 20 case studies as evidence.
“There really is a critical need to be looking at these opportunities proactively,” said Clare Brown, partner at Urbis. “Technology and digital transformation are impacting everything. Would we expect cities and the built environment to be unaffected?
“The alternative is a passive approach that sees change forced upon us in the form of expensive retrofits, places that feel dated before their time, and missed opportunities to improve both the efficiency of operations, and the convenience and the quality of amenity.
Brown added that while there is widespread interest in smarter development, there is also lingering uncertainty among developers on where to start and how best to proceed.
“Stakeholders told us that unclear return on investment, perceived high upfront costs, a lack of collaboration, and resistance to change are the critical bottlenecks stalling smarter developments in Australia,” she said. “But we know it produces cost-effective, efficient place outcomes.
“Data improves the management of systems and places. Smarter development is transforming the planning and development process just as much as placemaking – AI, for example, is assisting with expediting approvals by automatic assessment of planning applications. The opportunities are immense.”
The report calls for a dedicated "orchestrator" to unify stakeholders and drive industry-wide engagement, highlighting the need for early planning and alignment among developers, government, and technology providers.
“NBN and Urbis developed Accelerating Smarter Development, to present at a glance, the key touchpoints a developer should consider before taking the leap to make their new development smart,” said Kamie Ang, general manager partnerships, new developments at NBN Co. “The report clearly shows that strategic planning, stakeholder alignment, and early engagement are key to unlocking value.”
The initiative brought together partners including Delos Delta, UNSW’s City Futures Research Centre, the Australian Smart Communities Association, the Planning Institute of Australia, the Urban Development Institute of Australia, and the Property Council of Australia.
“The Property Council of Australia has always promoted new technology as a means of improving workforce efficiency, design capability, planning processes, construction productivity, and the sustainability of the urban environment,” said Mike Zorbas, chief executive of the Property Council.
“The prize is far bigger. This report shows safer, more liveable, more sustainable, connected communities across Australia are within reach.”
Recommendations in the report are tailored to government, industry bodies, technology suppliers, and developers, outlining steps to overcome barriers and accelerate digital transformation in the sector.
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