Record highs were recorded in two markets this year. Adelaide reached 29 cranes, up three since Q3 2025, with residential activity underpinning the result alongside rising commercial and health-related construction. The Gold Coast reached 75 cranes, up eight, with residential projects accounting for 93 per cent of activity. This marks the first time the Gold Coast has recorded more cranes than Brisbane, which fell nine cranes to 64 as civic and commercial projects concluded. Canberra rebounded strongly from 12 to 22 cranes, while Perth added one to reach 40, suggesting the market has found its footing after a period of moderation.
Commercial office cranes continued their decline, falling from 48 to 39 as projects reach completion against a backdrop of persistent vacancy pressures. With high vacancy rates already weighing on the feasibility of new commercial development, rising interest rates have increased the cost of construction finance at a time when build costs are elevated, with global supply chain disruption and geopolitical uncertainty adding further pressure to material pricing. Labour availability and productivity continues to be a constraint across major markets, extending project timelines and compressing margins. Together, these conditions are likely to see a number of commercial projects placed on hold, as the economics of new development become harder to justify without significant pre-commitment or anchor tenancy.
Residential development faces its own set of pressures. Rising construction costs and financing conditions are eroding project viability for many developers, and where projects can no longer be delivered at feasible returns, more sites are likely to come to market rather than proceed to construction. This points to a potential slowdown in new residential activity over the near term, adding further complexity to an already constrained housing supply environment.
What is likely to sustain broader construction activity through this period is the weight of committed government infrastructure investment. Civil cranes are already rising and the runway to the 2032 Brisbane Olympic Games, combined with major infrastructure programmes already underway across the country, will underpin a strong pipeline of civil work for years ahead. This government-backed activity, alongside continued growth in data centres, health, and aged care facilities, is expected to offset softening in private residential and commercial construction as those markets navigate a more challenging development environment.
