Managing cyber risk will be key challenge in the cities of the future, says new report
Proptech research by JLL and Tech in Asia highlights opportunities and threats of smart city innovations
Bangkok 5 April 2018 – Cities in Asia Pacific are getting smarter, but they must be ready for the cyber security risks that accompany the growing adoption of tech-enabled real estate and infrastructure, according to the report 'Clicks and Mortar: The Growing Influence of Proptech'.
Commissioned by JLL and authored by start-up community Tech In Asia, the report analyses the convergence of real estate and technology in 13 markets across the region and the ways that emerging technologies are being applied to connect urban real estate, infrastructure and services.
Smart cities initiatives are being implemented worldwide with many high profile examples in Asia Pacific:
- India has announced its intention to transform 100 municipalities with its Smart Cities Mission
- More than 500 cities in China have started their smart transformation.
- Japan and Korea already boast smart city projects.
- Singapore is progressing its Smart Nation vision, which was launched in 2014.
- In late 2017, Thailand unveiled a plan to include four more cities in its smart city pilot project -- Bangkok and three cities in the Eastern Economic Corridor (EEC); Chon Buri, Rayong and Chaochengsao -- in addition to Phuket, Chiang Mai and Khon Kaen. The country also aims to develop 100 smart cities countrywide in two decades.
- On 18 March 2018, a US$23 million ASEAN-Australian investment fund was announced to support smart cities in Southeast Asia.
Albert Ovidi, JLL Asia Pacific COO, says "Proptech is a key tool in the future development of cities and we in the real estate business have a vital role to play, particularly in smart property development and management. Digital infrastructure investment is increasingly important for cities to create more liveable environments and attract and retain the best talent."
"But considering the region's acceleration in the use of the Internet of Things (IoT) and high reliance on data collection and analysis, it's imperative for smart cities to develop effective safeguards against cyber risk," he adds.
According to the report, as the real estate industry becomes more technologically advanced, it has increased exposure to such risks. Though many proptech start-ups service the residential market, the commercial sector is not immune. In fact, property owners and tenants face pressures due to the rise of smart buildings where they have building management systems on their smart phones.
"Many of the exciting innovations being developed in the proptech sector, such as smart home controls or drones for property management, have the potential to improve user experience, and save time, money and energy," says George Thomas, JLL Asia Pacific CIO. "As a firm, we are committed to harnessing the latest technology to provide new products and services for our clients. But we also have to consider the implications of data security and privacy as the sector evolves."
BIoT – a new technology to combat risks?
Along with the continued development of advanced proptech tools, cyber policy initiatives are underway across the region, as governments work towards reinforcing domestic information systems security, collaborating with international partners for intelligence sharing, improving threat identification, and protecting critical infrastructure.
In what could be one of the most impressive tech trends in 2018, the convergence of blockchain and IoT (BIoT) may be one solution to combating cyber risks. BIoT is expected to unleash a new range of services and businesses, among which smart buildings and homes would benefit. BIoT would allow real-time access to data from sensors, with blockchain offering protection. Most importantly, it would build trust, reduce time and accelerate transactions.
"As the proptech space evolves there are huge opportunities for real estate owners and occupiers," adds Mr Ovidi. "Smarter cities and workplaces bring incredible prospective value. But in order to reap their full benefits, we have to prioritise systemic resiliency to ensure we manage the potential risks."
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About JLL Thailand
The firm’s operation in Thailand began in 1990 and today is the country’s largest international property service provider with 1,600 employees and more than five million square metres of property and corporate facilities managed. In Euromoney Real Estate Survey 2018, JLL was voted as Thailand’s number one overall real estate advisor for the 8th consecutive year and also won top votes for agency/letting, research and valuation in the same survey. The firm was also named Thailand’s five-star winner in the commercial property consultancy and commercial real estate agency categories at the International Property Awards Asia Pacific 2019/2020. For more information, visit jll.co.th.