Brisbane property investors have until 2027 to get residential projects underway before Olympic construction locks up the labour force and blows out costs, according to new research from Colliers.
The report, released this month, maps a narrowing window across residential, office, industrial, retail and hotel markets – with the residential sector facing the tightest timeline.
“The period leading up to 2027 presents a key opportunity window,” the research states.
“Developers who act early are well-positioned to secure approvals, funding, and construction capacity ahead of tightening constraints.”
Queensland’s construction pipeline has more than doubled over five years and is forecast to average $69 billion annually, peaking at $75 billion in 2027-28. The state faces a projected shortfall of approximately 19,100 workers annually through to 2031-32, with a potential peak gap of 35,000 workers in 2027-28.
The report draws a sharp distinction from Sydney’s 2000 experience.
“Unlike the Sydney 2000 Olympics, which experienced a delayed economic uplift following a period of economic weakness and high unemployment, Brisbane enters the Games with a strong, post-pandemic economy, tight labour markets, and elevated levels of public and private investment,” the research notes.
“Growth is likely to be felt sooner and more broadly.”
The Brisbane Showgrounds athlete village alone will deliver approximately 10,592 beds, converting to 1,750–2,000 apartments after the Games – equivalent to nearly two years of typical inner-city supply – absorbing significant labour and materials.
Brisbane rental vacancy sits below 1.5 per cent, with dwelling forecasts indicating a need for approximately 40,000 apartments and flats in Greater Brisbane between 2021 and 2031.
The research suggests prefabrication and modular construction methods could become essential, potentially reducing on-site labour requirements, lowering costs by 3 to 15 per cent depending on the component, and accelerating delivery times by 10 to 30 per cent.
Office market pricing gap creates an entry opportunity
For commercial investors, current pricing may represent a rare window before conditions tighten further.
“Many assets are trading 20 to 45 per cent below replacement cost following an increase in construction costs,” the report states.
“This pricing gap enables office space to be acquired at a meaningful discount.”
The research identifies at least 19 potential office conversion sites over a five to ten-year horizon across key CBD corridors, including Adelaide, George, and Queen Streets. However, feasibility typically depends on buildings reaching full vacancy and asset values falling to levels that support redevelopment.
Older C and D-grade assets experiencing higher vacancy are creating repositioning opportunities, with the report citing 123 Albert Street, where a refurbishment delivered a 20 per cent uplift in gross effective rent alongside improved occupancy.
Industrial land supply is tightening fast
Most Brisbane industrial submarkets have five per cent or less serviced land remaining, and at the current development pace, this supply is expected to be absorbed within four years.
Olympic-related construction is expected to generate strong demand for fabrication yards, materials storage, and equipment logistics. Food and beverage manufacturing will also see significant demand – the report notes that Paris 2024 prepared approximately 13 million meals over four weeks.
Brisbane industrial land prices are rising at some of the fastest rates on the east coast. The research suggests early positioning will be increasingly important as competition intensifies.
Hotels positioned for structural growth
Brisbane hotels are already trading above 75 per cent occupancy with limited spare capacity.
The city has approximately 8,700 investment-grade hotel rooms with a relatively benign development pipeline.
“The opportunity to acquire a hotel in Brisbane today is increasingly regarded as a once-in-a-generation opportunity to secure a foothold in a city on the cusp of sustained global repositioning,” the research states.
High construction costs, labour constraints, and limited contractor capacity are expected to restrict speculative hotel development, reducing the risk of post-event oversupply that has affected other Olympic host cities.
Connectivity investment critical
The report warns that without deliberate investment in precinct connectivity, Olympic benefits may stay localised around venues rather than spreading across the inner city.
With private cars heavily restricted during the Games, most travel will depend on public transport – around 60 per cent by train and 25 per cent by bus.
Walking, cycling and scootering will be essential, with many key precincts within a 15-minute trip of each other.
The research identifies a proposed walkable spine network connecting inner-city precincts as critical to distributing economic benefits more widely.