Weekly Market Update (27 February 2026)

Queensland’s construction sector faces a projected labour shortage of up to 46,000 workers by 2028-2029 due to the Brisbane 2032 Olympic Games and an unprecedented $120 billion infrastructure pipeline, with an average gap of 27,200 workers in 2026-2027. Beyond labour supply, Queensland construction sites are experiencing low productivity averaging only 2.5 productive days per week, which threatens Olympic timelines and could escalate costs unless systemic inefficiencies are addressed. WT recommends policy reforms including the Queensland Procurement Policy 2026 and productivity commission inquiry, along with increased investment in skills development, modular construction, and off-site manufacturing to close the labour and productivity gap. The Brisbane 2032 Games represents a macroeconomic inflection point for Queensland, with success depending on early workforce planning and long-term legacy design that extends venue benefits well beyond 2032.

Australian real wages declined over the year to December as wage growth (3.4%) failed to keep pace with inflation (3.8%), continuing a multi-year trend of wage erosion. Inflation has shifted what Australians consider a “good” wage, with six-figure earners now comprising 45% of full-time workers (up from 10% in 2010), yet many don’t feel financially secure due to rising living costs. Research shows Australians systematically underestimate wage inequality and don’t fully recognize how concentrated high wages are among a small group of workers. When provided accurate information about wage inequality, Australians across the political spectrum express strong support for policies to reduce wage gaps and ensure workers earn enough to live comfortably. Evaluating living standards requires looking beyond single wage headlines to consider whether wages consistently beat inflation, where gains are concentrated across sectors and genders, and whether cost-of-living benchmarks have been updated.

Regional Australian dwelling values grew 3.2% over three months to January 2024, outpacing capital cities at 2.1%, driven by affordability, internal migration, and increased buyer competition in regional areas. Western Australia’s regional markets led growth at 6.1%, with Albany (7.7%), Kalgoorlie-Boulder (7.6%), and Busselton (7.0%) performing strongly, while Wagga Wagga recorded the highest national performance at 8.1%. Selling conditions tightened significantly in high-growth markets, particularly in Western Australia and Queensland, with median time on market at 20 and 24 days respectively and vendor discounting at 3.3%. Regional rents accelerated 1.6% in three months (compared to 1.4% in capitals), with five-year growth of 41.9% far outpacing wage growth of 17.5%, exacerbating rental affordability pressures. New South Wales and Victoria recorded subdued growth (2.5% and 2.3% respectively) with some localized declines, while Tasmania experienced the fastest rental increases with Devonport and Launceston leading annual growth.

National rents have surged 43.9% over five years compared to only 17.5% wage growth, pushing rental affordability to a record low of 33.4% of pre-tax income spent on rent. Western Australia is experiencing the most severe rental crisis with rents soaring 66% in five years, while the ACT is the only jurisdiction where rents and wages have remained broadly aligned. Rental growth is reaccelerating to 5.4% annually as of January 2026, despite already stretched household budgets, indicating continued demand exceeding supply. The rental affordability crisis is driven by tight vacancy rates, limited new housing supply, and sluggish construction that fails to match population growth. Relief requires coordinated policy action including increased build-to-rent projects, private investment incentives, planning reforms for greater density, and a sustained lift in housing supply to prevent further deterioration in affordability. 

Real Wages & Living Standards Update (Source: Property Update)
Australian real wages declined over the year to December as wage growth (3.4%) failed to keep pace with inflation (3.8%), continuing a multi-year trend of wage erosion. Inflation has shifted what Australians consider a “good” wage, with six-figure earners now comprising 45% of full-time workers (up from 10% in 2010), yet many don’t feel financially secure due to rising living costs. Research shows Australians systematically underestimate wage inequality and don’t fully recognize how concentrated high wages are among a small group of workers. When provided accurate information about wage inequality, Australians across the political spectrum express strong support for policies to reduce wage gaps and ensure workers earn enough to live comfortably. Evaluating living standards requires looking beyond single wage headlines to consider whether wages consistently beat inflation, where gains are concentrated across sectors and genders, and whether cost-of-living benchmarks have been updated.

– Sydney: 987/ 62.4%
– Melbourne: 1327/ 59.3%
– Brisbane: 159/ 61.6%
– Perth:  15/ 86.7%
– Canberra: 123 / 58.5%
– Adelaide: 141 / 85.8%
– Tasmania: 4 / 50%
– Combined Capitals: 2756 / 62%