The 12-month trial will cost around $330,000 and will roll out in the first quarter of 2016, once all of the car park sensors, real-time traffic signs and smartphone applications have been installed.

Information on parking congestion will be picked up from in-ground sensors, relayed to the apps and signs and drivers will be guided to available parking spaces.

The government was unable to start the trial earlier because it was waiting for the feasibility of a free Wi-Fi network in the area. Manuka Business Association president Mary-Jane Liddicoat expects the Wi-Fi network will be available to shoppers within the next month.

"We are delighted the trial will happen and we love the idea of the big signs showing people where a park is," she said.

"The trial is being run in Manuka because it has an ideal cross-section of off and on street parking, loading zones, and just the right combination of car parks."

Mr Barr explained the smartphone app could give commuters information on parking availability before they leave or during their trip via hands-free use.

"The Manuka smart parking trial will use innovative technology to save drivers time, reduce traffic delays and provide a better overall user experience," he said.

The success of the Manuka trial will be judged based on the effectiveness of the technology guiding drivers to spots, reducing congestion and improving access to shops, as well as community feedback.

If successful, the government will consider expanding smart parking as part of a five-year implementation plan linking it to free Wi-Fi networks.

The vendors for the government's initiative, Smart Parking Ltd, owns 70 per cent of the global smart parking market.

"Our tried and tested smart park solution will play a key role in helping Canberra's roads and parking spaces operate more efficiently, delivering real benefits for both drivers and local business," Smart Parking's group chief executive officer, Paul Gillespie said.

Ms Liddicoat rejected the suggestion Manuka has more of a parking shortage than other major town centres.

"We know from studies that there is 20-25 per cent of parks available there, depending on the time of the day," she said.

"This smart parking will remove the perception that there is no parking in Manuka," she said.