What's driving the increase, what it means for your projects,
and how to plan ahead.
Our 2026 guide for Brisbane, Logan, Gold Coast, Sunshine Coast & Ipswich.
Construction
cost escalation in 2026
CONSTRUCTION INSIGHTS
Why construction
costs are rising in 2026
COST OVERVIEW
Short answer: not enough tradies, and too much work chasing them - and that's before the Olympic build ramps up properly.
Brisbane's tender prices were forecast to jump around 5% across 2026, and from where we're sitting halfway through the year, that's tracking pretty much bang on. That's not us guessing - that's the word from industry analysts tracking the sector, and it lines up with what we're seeing on the ground. The bigger issue is where things go from here.
The reasons are pretty simple:
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Queensland's construction workforce is short an estimated 50,000 workers, with that shortfall expected to peak in 2026–27. That's not a typo - fifty thousand.
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The 2032 Olympic build program is the main game here. Venue works, athlete villages and surrounding infrastructure are starting to properly compete for the same sparkies, chippies and project managers that commercial fitout and refurb jobs rely on - and that competition only gets fiercer as more of those projects move from planning into construction over the next couple of years.
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Data centres and general SEQ growth are pulling from the same trade pool too, adding to the squeeze.
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Supply chains are still tight in places, which doesn't help either.
What that means for you: the same fitout that cost $900/m² a year or two ago is already sitting closer to $950-$1,000/m² now, and every sign points to that gap widening further into 2027 as Olympic-related works ramp up, not the other way around.
RE-THINKING THE COSTS
The Silver Lining (yes, there is one)
Before you panic and shelve the project - Brisbane is still one of the more affordable capital cities in Australia for fitout work. We're sitting below Sydney and Melbourne on cost per square metre, and the gap isn't closing anytime soon given how much dearer those markets already are. So while costs here are climbing, we're still working off a lower base than most of the country - for now.
The real takeaway isn't "costs are rising, give up" - it's "costs are rising, and with the Olympic works only ramping up from here, get moving while your budget still stretches further than it will in 2027."
Common questions
about cost escalation.
FREQUENTLY ASKED QUESTIONS
Construction cost increases vary depending on the project type, location, materials and availability of skilled trades. GCM’s article notes that Brisbane tender prices were forecast to increase by around 5% across 2026, with ongoing pressure from labour shortages and strong demand for construction services.
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For commercial fit-outs and refurbishments, the final cost will also depend on the existing condition of the space, the level of finishes, building services and the complexity of the work. These factors mean general industry forecasts should be used as a guide rather than a fixed estimate for an individual project.
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The best way to understand the likely cost of your project is to develop a detailed scope and obtain current, project-specific pricing before committing to construction.
Material price movements can vary across the construction industry, and not every product is affected equally. Materials and components linked to energy, freight and global supply chains can be particularly exposed to price fluctuations.
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For commercial fit-outs, this can affect electrical components, plumbing products, steel, plasterboard, joinery materials and specialist finishes. Availability is also important: if a specified product has a long lead time, alternative products or changes to the construction schedule may need to be considered.
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Planning selections early, confirming supplier pricing and allowing time for procurement can help reduce the risk of unexpected costs. Where appropriate, GCM can also explore alternative materials or specifications that maintain the required quality and functionality while helping manage the budget.
Labour availability is one of the major pressures facing Queensland’s construction industry. A shortage of skilled tradespeople, combined with competing demand from infrastructure, commercial development and major projects, can increase subcontractor pricing and make it harder to secure trades when required.
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As construction activity associated with Brisbane’s 2032 Olympic Games ramps up, competition for qualified trades and experienced project managers may place further pressure on the market.
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For commercial fit-outs, these pressures can affect both the cost and timing of a project. Early engagement with builders and subcontractors, realistic scheduling and coordinated procurement can help reduce delays and avoid unnecessary costs. While future increases cannot be guaranteed or predicted precisely, allowing for current market conditions is an important part of responsible project budgeting.
Although you cannot control the wider construction market, there are practical steps you can take to manage its impact on your project.
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Plan early. Engage a builder during the design and budgeting stage to identify potential issues before they become expensive changes.
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Define the scope clearly. Confirm inclusions, exclusions, finishes and building services so your budget reflects the work actually required.
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Obtain current pricing. Use up-to-date supplier and subcontractor pricing rather than relying on historic estimates.
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Review alternatives. Consider suitable alternative materials, finishes or construction methods where they offer savings without compromising essential requirements.
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Allow for contingencies. Existing building conditions and unforeseen issues can affect refurbishment costs, so an appropriate contingency is important.
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Choose your builder carefully. Check relevant licensing, completed projects, financial reliability and how variations are managed.
GCM takes a practical approach to estimating, pre-construction planning and project management, helping clients make informed decisions and understand costs before work begins. No builder can eliminate every risk, but clear communication and careful planning can make costs more predictable.
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If you are planning a commercial fit-out or refurbishment in Brisbane, Logan, the Gold Coast, the Sunshine Coast or Ipswich, delaying a project solely in the hope that prices will fall may not be the best strategy.
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The right timing ultimately depends on your business needs, budget, lease commitments and project readiness. Starting the planning process early gives you more time to establish a realistic budget, finalise your design, confirm the scope and investigate procurement lead times before committing to construction.
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If your project is approaching the budgeting or design stage, speaking with an experienced commercial builder can help you understand the current market and decide on a sensible path forward.
