Queensland is bracing for a construction labour shortage that could reshape the state's property landscape. According to a recent report by the Australian Financial Review, the state will need nearly 18,500 additional workers to meet its national housing targets — a number that's expected to rise as infrastructure ramps up ahead of the 2032 Brisbane Olympics.

A Tightening Market

The Charter Keck Cramer consultancy warns that Queensland is most at risk of missing housing targets due to this growing pressure. Between 2028 and 2032, the state will be deep into Olympic-related infrastructure projects, stretching an already thin supply of building workers and materials.

For example, Gold Coast developer Aniko Group has fast-tracked construction of its $2.5 billion Landmark project to avoid labour constraints. This is a clear signal: developers with large projects are moving early to dodge the worst of the crunch.

Commercial Property Implications

While the headlines focus on housing, the ripple effects will hit commercial real estate hard. Renovations, refurbishments, and shopfitting projects will face:

• Escalating costs as demand for skilled trades and materials rises.

• Delayed timelines with contractors prioritising larger, publicly funded projects.

• Scheduling challenges for both landlords and tenants.

Owners of office buildings, retail spaces, and warehouses could find it increasingly difficult to deliver on lease agreements involving fit-outs or upgrades. Meanwhile, tenants may need to plan for higher costs or longer wait times when tailoring spaces to their needs.

Competitive Pressure and Strategic Planning

With fewer skilled tradespeople available, speculative upgrades that typically attract high-quality tenants might slow. This could affect leasing activity and repositioning strategies for underperforming assets. However, those who move early — locking in contracts and trades now — may find themselves ahead of the curve.

The squeeze also raises the stakes for maintenance and compliance works. Delays in addressing building wear and tear or adapting to tenant requests could impact both occupancy and returns.

Final Word: A Shrinking Window

The construction labour shortfall is not just a residential issue. Commercial landlords and occupiers should brace for higher costs and slower project delivery. Acting now could mitigate future risks and offer a competitive edge.

The clock is ticking — and the trades are already being booked.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

Liability Limited by a Scheme approved under Professional Standards Legislation