Queensland construction costs rise faster than inflation
What happened
Construction costs in Queensland are increasing faster than broader inflation. This rise is driven by labor shortages, material costs, supply chain constraints, and capacity challenges in the construction sector. While property values have softened due to higher interest rates and affordability constraints, the cost of rebuilding homes continues to climb.
Why it matters
The divergence between a property's market value and its replacement value creates a heightened risk of underinsurance for homeowners. This trend of rising rebuilding costs faster than market valuation is particularly pronounced in parts of Queensland.
Gold Coast and Brisbane are expected to face the highest building cost increases by 2028, a trend influenced by global commodity price shifts caused by the Middle East conflict.
Who's involved
- QueenslandState of Australia where construction costs are rising faster than inflation.
- South East QueenslandRegion experiencing pronounced increases in construction costs.
- North QueenslandRegion experiencing pronounced increases in construction costs.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Far North QueenslandSpeculative
Construction costs might increase operational costs in this region.
- South East QueenslandSpeculative
Rising material and labor costs could increase operational expenses for construction in the region.
- North QueenslandSpeculative
Construction costs might increase operational costs in this region.
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The entities involved
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Queensland
state of Australia