Turner & Townsend’s latest Global Construction Market Intelligence (GCMI) report for 2025 reveals that Brisbane has emerged as the most expensive city to build in Australia, with an average construction cost of $5,009 per square metre.
This places Brisbane seven ranks higher than Sydney, traditionally the priciest city, where costs average $4,866 per square metre.
The report highlights that strong public investment, interstate migration, and preparations for the 2032 Olympic and Paralympic Games have contributed to Brisbane and Queensland’s recent construction boom.
This investment is focused on sectors such as healthcare, housing, energy, and utilities to support the growing population.
Meanwhile, Melbourne has dropped to the second cheapest in the region, with average construction costs at $4,242 per square metre, as rising costs and softened demand in traditional hubs like Melbourne and Sydney shift investment towards smaller capitals like Perth and Brisbane.
Perth ranks as the third most expensive Australian city at AU$4,497 per square metre, while Adelaide remains the most affordable at $4,133.
Nationwide, the shortage of specialist skills combined with union-negotiated wage increases continues to sustain elevated construction cost inflation, with forecasts of 4.2 per cent growth in 2025 and 4.6 per cent in 2026.
Tiffany Emmett, Project Director and Head of Construction Economics ANZ at Turner & Townsend, commented: “It is very encouraging to see growth and increasing activity in many Australian construction markets – where we are seeing both public and private investment come together to drive project delivery of social infrastructure, energy, utilities, healthcare, education, housing and more.”
“However, the decline in some of the traditional hubs offers a cautionary tale.
“We must ensure that high demand, along with rising costs and stretched labour supply, doesn’t become its own worst enemy.”
Emmett advises clients to remain aware of capacity limitations in Queensland and Western Australia, noting that these construction markets are smaller compared to those in New South Wales and Victoria.
She voices that there is a need for the industry to work closely with state governments to enhance pipeline transparency, improve productivity, and develop skills to grow industry capacity.
Emmett also highlights the importance of backing the National Construction Industry Forum and its National Construction Strategy to foster resilience and achieve long-term sector improvements.
On a global scale, New York City and San Francisco lead the world in average construction costs at $9,177 and $8,794 per square metre, respectively.
The United States dominates the top ten most expensive cities globally, reflecting resilient demand despite geopolitical and economic challenges.
This data from Turner & Townsend’s 2025 GCMI report reflects ongoing shifts in construction markets, driven by demographic changes, government infrastructure commitments, and persistent workforce constraints that together elevate the cost of building across Australia and globally.
