What’s Happening?
North Queensland is entering one of its busiest construction periods, with major work planned across Townsville and Cairns. Rider Levett Bucknall has appointed Nick Duncan as Director to support clients through growing demand.
The regional construction program is set to be the largest in its history before Brisbane 2032. Those Olympic and Paralympic Games will affect construction activity across Queensland. The program covers defence, health, education, water, tourism and housing projects across both major centres.
Why It Matters
Several large projects are reaching the market together, increasing pressure on builders, subcontractors and skilled workers. Rider Levett Bucknall expects Townsville to face Australia’s strongest tender cost growth.
Rider Levett Bucknall’s latest Australia Report links the forecast to defence demand and labour shortages. Limited Tier 1 competition is also contributing to the pressure. Townsville City Council has identified skilled labour as a constraint on new housing and infrastructure.
Mr Duncan said the work extends beyond South East Queensland. “The pipeline of work isn’t just in South East Queensland, there’s a significant pipeline in North Queensland as well.”
Local Impact
In Townsville, residential approvals are above the long-term average as major public projects add demand. Mr Duncan said the work gave locals more reasons to remain in North Queensland. “There’s now a lot of incentive for locals to stay put. They don’t have to go to Brisbane to work on a major project,” he said.
In Cairns, head contractor tenders closed in August 2026 for the region’s largest health investment. A new university campus also broke ground in the city centre that month.
Housing construction is also drawing from the same pool of skilled trades. Mr Duncan said, “Housing draws on the same trades as the public program, so it forms part of the same demand picture.”
By the Numbers
- Townsville City Council approved 1,255 residential lots during 2025-26. This was the city’s highest annual total in almost a decade.
- Townsville tender prices are forecast to rise 7 per cent during 2026. This is the highest increase among Australian markets. Darwin follows at 6.9 per cent, then the Gold Coast at 6 per cent. Perth sits at 5.6 per cent, while Adelaide reaches 5.1 per cent. Sydney, Melbourne and Canberra remain materially lower.
- Compounded growth could reach around 30 per cent over the four years to 2029. The projection reflects sustained pressure across the construction market.
Zoom In
Mr Duncan has more than 20 years of quantity surveying experience across regional Queensland. He led Rider Levett Bucknall teams in Cairns and on the Sunshine Coast before returning to Townsville.
This background gives him first-hand knowledge of construction markets across the region. He said tendering decisions must account for current cost forecasts. “Tendering into a market forecast at 7% is a different exercise to tendering into one at 4,” he said.
Rider Levett Bucknall has worked continuously in Cairns for 45 years since opening there in 1981. Its Townsville and Cairns offices provide local cost planning, procurement and project advice.
Zoom Out
Major public investment is driving activity across defence, health, education and water infrastructure in both cities. Tourism investment and residential construction are adding to the same workload.
Olympic-related construction could intensify cost growth in Townsville, Brisbane and the Gold Coast. Rider Levett Bucknall expects major contractor capacity to tighten before venue construction. “The Games work doesn’t stay in the south east,” Mr Duncan said. “It draws on the same builders and the same subcontractors, and that reaches north.”
Mr Duncan said the main issue had shifted from securing projects to coordinating their delivery.
“The big challenge we have is in the delivery and sequencing of these major projects,” Mr Duncan said. He said this was needed “so that they’re not competing with one another and putting upward pressure on demand.”
What To Look For Next?
Clients with shovel-ready projects may act early while tender conditions remain competitive. Mr Duncan said this could help secure pricing before costs climb. “While there are opportunities for competitive tender results in the near term for shovel ready projects, this will reduce through 2027.”
Regional coordination will become more important as projects move through procurement and delivery. Their timing will affect competition for the same builders and subcontractors.
More information is available through the Rider Levett Bucknall website.
