Brisbane's construction costs skyrocket, making it the most expensive place to build in Australia

Brisbane is now the most expensive place to build in Australia, with construction costs at $5009 per square meter, 3% higher than Sydney. The city's growing pipeline of major infrastructure projects and interstate migration are exacerbating cost increases, which could lead to budget overruns, delays, and project cancellations. The average wage for Brisbane construction workers is $77 an hour. The city's housing shortage may also contribute to further cost increases.

Brisbane has emerged as the most expensive place to build in Australia, with construction costs now at $5009 per square meter, a 3% increase over Sydney. This surge is primarily attributed to the city's robust pipeline of major infrastructure projects and interstate migration, which are driving up costs and potentially leading to budget overruns and project delays [1].

The average hourly wage for construction workers in Brisbane is $77, reflecting the city's high demand for labor. However, the housing shortage in Brisbane may further exacerbate construction costs, as the demand for housing outstrips supply, pushing up the cost of living and materials [2].

The construction boom in Brisbane is driven by significant infrastructure projects, including the Cross River Rail, which aims to reduce congestion and improve public transport. Additionally, interstate migration, particularly from Sydney and Melbourne, is placing further pressure on the housing market and construction industry.

Investors and financial professionals should be aware of these cost increases when evaluating potential projects in Brisbane. The rising construction costs could impact project profitability and timelines, necessitating careful budgeting and planning. Moreover, the ongoing housing shortage may continue to drive up material costs, further complicating project finances.

References:

[1] PK Gupta | Brisbane is the country’s most expensive market to build in – $5,009 per square metre. Jeez, remember when it used to be $2,500 per sqm?... | Instagram

[2] Labourer – Commercial Construction at COWYN Building Group | Seek