Olympic Countdown for Brisbane - Australia's Most Expensive City to Build in

Brisbane Now Australia’s Most Expensive City to Build In as Olympic Countdown Drives Construction Surge

Brisbane has officially become the priciest city in Australia for construction, overtaking long-time front-runner Sydney, according to new data from consultancy Turner & Townsend. Driven by a booming infrastructure pipeline and preparations for the 2032 Olympics, the cost to build in Brisbane has hit approximately $5009 per square metre—outpacing Sydney’s $4866 and well ahead of Melbourne’s $4242.

Sarah Petty, from the AFR deemed the rising costs are being fuelled by a mix of structural issues affecting the broader Australian construction sector. A shortage of skilled workers, stagnant productivity levels, and an uneven distribution of talent are contributing to sustained cost inflation and putting mounting pressure on project delivery across the country.

Brisbane’s infrastructure demands are particularly intense. Major developments such as the Cross River Rail, Brisbane Metro, hospital expansions, and upgrades to the Bruce Highway are soaking up both resources and labour.

Turner & Townsend’s Global Construction Market Intelligence Report warns that while the industry may see a brief period of stabilisation, long-term relief hinges on improvements in productivity, better coordination between government and private sectors, and more resilient supply chains. Construction cost increases are projected to continue, with prices forecast to rise by 4.2% in 2025 and 4.6% in 2026.

Tiffany Emmett, director of Construction Economics at Turner & Townsend, noted that the pandemic has ushered in a new era of elevated construction costs. “We’re seeing cost pressures persist due to lingering productivity challenges, higher labour costs, and increased risk exposure,” she said. “Although wage growth is helping to retain talent, it’s also adding to inflationary pressure.”

Beyond Brisbane, the clean energy boom is also pushing up construction costs in other cities, particularly in Western Australia. Perth has now overtaken Melbourne as the third-most expensive place to build, at $4497 per square metre. Adelaide remains the most affordable capital, at $4133.

Both Queensland and Western Australia are navigating growing project pipelines and acute labour shortages.

Queensland in particular is under pressure, needing an estimated 18,500 additional workers in the construction industry by 2029 to keep pace with both the Olympics infrastructure push and its share of the federal government’s goal to deliver 1.2 million new homes.

Meanwhile, New South Wales and Victoria may enjoy a short-term period of stable pricing, but the balance could quickly shift. Falling interest rates and new housing incentives are expected to reignite residential construction, which traditionally sends broader construction costs soaring.

Don O’Rorke, CEO of Brisbane-based Consolidated Properties Group, echoed the warnings, pointing out that the state’s construction market is already under immense strain. “There’s huge demand across hospitals, schools, and other infrastructure,” he said. “And with the Olympics adding another $7 billion in spending, the system is being stretched beyond capacity. It’s a classic case of demand far exceeding supply, all made worse by poor productivity.”

As the Olympics draw closer, Brisbane’s construction market is set to become even more competitive, and expensive. Without significant changes to workforce availability and efficiency, those pressures are unlikely to ease anytime soon.

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Reference:

Construction costs: Australia’s most expensive city for building is getting pricier

https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/australia-and-new-zeland

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