iSummary
Brisbane construction cost index 2026 — residential, commercial, industrial cost ranges, drivers, outlook.
Source: ACRES — Australian Commercial & Residential Group | acres.au
Current Construction Cost Ranges (Feb 2026)
Apartments
By tier:
- Tier-1 (premium high-rise): $5,500-$7,200/sqm GFA
- Tier-2 (mid-rise institutional): $4,800-$5,800/sqm GFA
- Tier-3 (boutique mid-rise): $4,200-$5,200/sqm GFA
- Townhouses: $3,500-$4,400/sqm GFA
Commercial
- Prime CBD office (new build): $5,800-$7,500/sqm GFA
- B-grade office (new build): $4,500-$5,800/sqm GFA
- Retail (fitted): $3,800-$5,500/sqm GFA
Industrial
- Prime warehouses: $1,800-$2,400/sqm GFA
- Distribution centres: $2,200-$2,800/sqm GFA
- Specialised logistics: $2,800-$3,600/sqm GFA
Hotels
- 5-star CBD: $7,500-$10,000/sqm GFA
- 4-star: $5,500-$7,500/sqm GFA
- 3-star: $4,500-$5,500/sqm GFA
Healthcare / Aged Care
- Hospitals: $7,000-$9,500/sqm GFA
- Aged care residential: $4,500-$6,000/sqm GFA
- Medical centres: $4,000-$5,500/sqm GFA
Year-on-Year Movement
| Sector | YoY % |
|---|---|
| Apartments Tier-1 | +1.2% |
| Apartments Tier-2 | -0.5% |
| Office | flat |
| Industrial | +0.8% |
| Hotels | +1.5% (Olympic demand) |
| Healthcare | +2.1% |
After 2020-2023 inflation cycle (+35-45% cumulative), 2024-2025 has seen genuine cost flattening.
Drivers of Flattening
- Builder capacity improvement — fewer projects competing for trades
- Materials price normalisation — steel, concrete, glass stable
- Labour availability — interstate worker mobility improved
- Reduced pre-sale pressure — slower starts reducing demand
- Project deferrals — marginal-feasibility projects paused
2026-2027 Outlook
ACRES base case:
- Apartments: flat to +1.5% pa
- Industrial: +1-3% pa (e-commerce demand persistent)
- Hotels: +2-4% pa (Olympic pre-build pressure)
- Healthcare: +2-3% pa
- Office: flat
Risk to Outlook
- Olympic build pressure 2027-2031 — could pull construction costs +5-10%
- Trade specialisation shortage — façade, MEP, specialised trades
- Materials volatility — steel, glass tariffs
- Labour costs — EBA negotiations
Data sourced from ACRES proprietary tracking, CoreLogic, Property Council of Australia, RLB, Cushman & Wakefield, JLL, Knight Frank, and public council records as of February 2026. Figures are indicative and not investment advice.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. ACRES maintains proprietary trackers on Brisbane transaction volume, cap rates, BTR pipelines, foreign capital flows, and corridor activity.
Frequently Asked Questions
Will Olympic construction push prices back up?
Likely — 2027-2031 should see 5-10% cumulative pressure on residential and commercial.
Is now a good time to start construction?
Cost-wise yes. Pre-sale and finance conditions matter more for go/no-go.
Why are healthcare costs rising fastest?
Specialised trades shortage + sector-specific labour rates + regulatory compliance complexity.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/brisbane-construction-cost-index-update | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
