Brisbane’s Construction Boom: Navigating Rising Costs Amid Olympic Preparations

Brisbane is in the midst of a historic construction surge, with billions being invested into transport, sporting, and civic infrastructure ahead of the 2032 Olympic Games. While the development pipeline promises long-term benefits, it’s also creating short-term pressures — particularly in the industrial and commercial construction sectors. Rising material costs, skilled labour shortages, and supply chain delays are now front of mind for developers and investors seeking to deliver projects in Brisbane’s hottest growth corridors. Understanding how to navigate these challenges will be critical for commercial success through 2025 and beyond.

Olympic Infrastructure Is Driving Pipeline Growth

The upcoming 2032 Olympic Games have fast-tracked a wave of construction projects across Brisbane and southeast Queensland. While many projects are focused on sport and civic renewal, the broader effect is stimulating logistics, trade, and industrial development across key precincts.

• Major Olympic projects include upgrades to the Gabba Stadium, Brisbane Arena, and Brisbane Live precinct.

• New transport connections like Cross River Rail, Brisbane Metro, and Gateway Motorway upgrades are reshaping freight and commuter flows.

• Industrial zones in Pinkenba, Eagle Farm, and Darra are benefiting from adjacent infrastructure works that improve access and value.

Cost Escalation Is Reshaping Project Viability

Construction costs in Brisbane have risen more than 30% over the past three years — driven by supply disruptions, wage pressures, and global demand. Developers are re-evaluating pre-COVID feasibility models as costs for steel, concrete, electrical, and fuel continue to challenge timelines and budgets.

• Average construction cost growth in 2024–25 is forecast at 6–8% year-on-year, impacting margins and delaying project starts.

• Cost per sqm for new warehouses and commercial fit-outs is now 20–40% higher than pre-2020 benchmarks.

• Builders are increasingly requesting early contractor involvement (ECI) to manage budget and procurement risk.

Skilled Labour Shortages Impact Delivery Timelines

One of the most significant barriers to on-time delivery is a shortage of skilled trades. Brisbane’s construction sector is operating at full capacity, and overlapping Olympic, transport, and private sector projects are pulling from the same limited talent pool.

• There is a shortfall of electricians, formwork carpenters, crane operators, and project managers across southeast QLD.

• Delays in project timelines are causing a ripple effect across commercial leasing and sales tied to staged development.

• Government and private developers are competing for the same skilled workforce, placing pressure on wage escalation.

Developers Are Shifting to Staged or Pre-Commitment Models

In response to market pressures, developers are adapting their approach. Many are shifting toward staged delivery, pre-lease commitments, and early tenant involvement to ensure certainty before capital is deployed at scale.

• Pre-commitment leasing is now a standard condition for speculative industrial builds, especially on fringe land.

• Staged construction is being used to manage risk and respond to availability of labour and materials over time.

• Owner-occupiers are showing preference for turnkey design-and-construct delivery over speculative completion models.

Submarkets Positioned for Long-Term Growth

While delivery challenges remain, Brisbane’s fundamentals are strong — and areas benefiting from Olympic-adjacent infrastructure are seeing significant uplift in value and demand. Investors and developers with a long-term view are actively securing land in well-connected, underutilised precincts.

• TradeCoast precincts like Lytton and Murarrie are experiencing land value uplift from port, road, and airport upgrades.

• North Brisbane hubs such as Brendale and Narangba are attracting industrial activity due to future logistics links.

• Western growth areas including Richlands and Wacol are evolving into key warehousing and cold storage hubs tied to population growth.

Brisbane’s Next 10 Years Will Be Built in the Next 3

The Olympic-driven development wave presents a rare opportunity to reshape Brisbane’s commercial landscape. However, short-term cost pressures and workforce constraints require a clear strategy. Those who can deliver efficiently and market effectively in this environment will capture long-term tenant and investor demand.

• Capital is shifting into infrastructure-backed locations where uplift is expected post-Games.

• Developers who manage cost risk and delivery certainty are commanding leasing and sales premiums.

• Early mover advantage remains real in zones not yet saturated by institutional activity.

How Commercial Property Marketing Can Help

At Commercial Property Marketing, we help developers and agents cut through the noise in a competitive market. Whether you’re pre-leasing staged builds, seeking tenant commitments, or launching a land campaign in Olympic-linked zones, we create sharp, compelling visuals and strategy to help projects succeed despite rising costs and delivery risk.