Brisbane Faces 30% Construction Cost Surge by 2029

Brisbane’s effort to complete Olympic infrastructure by 2032 is driving a construction boom and pushing costs higher.

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Pick & Scroll News
June 05, 2025

Brisbane’s effort to complete Olympic infrastructure by 2032 is driving a construction boom and pushing costs higher. Experts warn that expenses may rise by more than 30% over the next five years, which could lead to labour shortages, delivery setbacks and growing concerns over project timelines.


Currently, Brisbane’s construction market is dealing with increasing costs, with the city's growing list of Olympic-related projects seen as a leading cause. Unlike Sydney and Melbourne, where cost pressures are starting to ease, Brisbane is deviating from that trend due to a surge in large-scale projects focused on sports and health facilities.


According to an industry report, building costs in Brisbane rose 5.2% in 2024, which was slightly below earlier predictions. However, the impact is expected to worsen. Global engineering company Arcadis forecasts annual building cost increases of 5% from 2025, resulting in a total inflation of 30.5% by 2029. In comparison, Sydney is projected to see a rise of 27.9% and Melbourne 25.5%. Perth is set to experience the sharpest jump with a projected 42.4% increase.


Labour shortage is one of the biggest challenges. Brisbane's construction sector may face a shortfall of more than 41,000 workers by early 2025. Wage growth is accelerating, driven by Enterprise Bargaining Agreements. These labour pressures are causing delays and forcing some projects to shift toward alternative delivery models that focus on risk and profit sharing. Despite these adjustments, doubts remain over Brisbane's ability to meet Olympic deadlines.


Across the country, the construction industry is facing several overlapping issues. While investment in public infrastructure and renewable energy brings opportunities, Australia is still contending with a labour shortage that may reach up to 130,000 workers. At the same time, insolvencies and outdated systems continue to reduce capacity right when pressure is increasing to deliver on housing, defence and urban development initiatives.


As federal support grows and policy goals become more ambitious, the construction sector must move quickly. This includes improving workforce planning, streamlining procurement processes and embracing collaboration and innovation before time runs out for Brisbane's Olympic projects.