Brisbane has overtaken Sydney as the most expensive city in Australia to build, according to the latest Global Construction Market Intelligence (GCMI) 2025 report released by Turner & Townsend.
The report shows that Brisbane’s average construction cost has reached AU$5,009 (US$3,135) per square metre, placing it 36th globally and ahead of Sydney, which recorded AU$4,866 (US$3,046) per square metre. The surge is driven by a combination of major public investments, population growth, and preparations for the 2032 Olympic and Paralympic Games.
Brisbane and Queensland’s broader real estate markets are benefiting from strong inflows of investment in healthcare, housing, energy, and utilities — sectors expanding to meet the needs of a fast-growing population.
“The positive effects of the upcoming Olympics, coupled with high levels of inward migration and infrastructure spending, are pushing Brisbane’s construction costs above traditional powerhouses like Sydney and Melbourne,” the report noted.
Across Australia, construction cost inflation remains high, with average increases projected at 4.2% in 2025 and 4.6% in 2026, driven largely by a shortage of specialist skills and rising wages from new union agreements.
Regional Breakdown
- Brisbane: AU$5,009 (US$3,135) per m² — most expensive in Australia
- Sydney: AU$4,866 (US$3,046) per m²
- Perth: AU$4,497 (US$2,815) per m² — third most expensive
- Melbourne: AU$4,242 (US$2,655) per m² — second cheapest
- Adelaide: AU$4,133 (US$2,587) per m² — most affordable
Despite rising costs, Sydney and Melbourne remain major centres for data centre investments, one of the fastest-growing construction sectors in Australia. Meanwhile, Perth is benefiting from strong activity in renewable energy, particularly wind and hydrogen projects, which now rank as the country’s second-best performing sector after data centres.
The report also highlights that affordability pressures in Melbourne and Sydney are shifting investor focus toward regional and emerging urban markets, where construction pipelines are more accessible and land availability remains higher.
Globally, New York City and San Francisco top the construction cost rankings at AU$9,177 (US$5,744) and AU$8,794 (US$5,504) per square metre, respectively, underscoring the resilience of U.S. construction demand despite economic headwinds.
