Brisbane sheds 'Mining Town' tag amid industrial, office supply squeeze

For decades, Brisbane's economic fortunes rose and fell with commodity prices. When mining boomed, the city prospered. When resources slumped, the impact rippled through offices, shops and households across South East Queensland.

But those are increasingly characteristics of the past as mining’s contribution to the Queensland economy is scaled back in favour of healthcare, professional services and emerging technology, which are growing their influence in a more varied economy.

“Brisbane is shedding its 'mining town' identity and emerging as a diversified, innovation-led economy built for sustained growth,” says Vivenne Bolla, research director, Queensland, JLL, and author of the report, Timing the Turn in Brisbane.

Brisbane’s A$23.7billion health sector is the city’s fastest-growing industry, recording gross value-added growth (GVA) – a metric that measures the contribution of an industry to a region – of 79.5% over the 10 years to 2025. Information and communications technology (ICT) follows at 66.1% GVA and the professional, scientific and tech industries are the third-fastest growing at 50.1% GVA.

Meanwhile, mining's contribution to the economy fell to 12% in 2025, down from an average 17% over 2017-2020.

With resources still accounting for the largest share of Queensland’s economy, mining remains an important factor for growth. Coal and LNG exports continue to provide a stable foundation and the state is leveraging its mining expertise to become a key supplier of critical minerals supporting the global energy transition. 

However, there are new drivers for the city’s future fortunes and they come as Brisbane gears up to host the 2032 Olympic Games. By then, the city will have recorded an expected annual GDP growth of 2.8% – the biggest in Australia, outpacing Melbourne’s projected increase of 2.6% and Sydney’s 2.4%. 

This makes Brisbane one of the fastest growing cities globally for population and economic expansion.

Limited new construction of offices and warehouses could see Brisbane’s growth hit a snag though.

“The city is entering a phase where scarcity will define the market,” Bolla says, commenting on a development pipeline in each of the real estate types that are the lowest they’ve been in 10 years.

As the professional, scientific and technical sectors – also known as knowledge-based industries – gobble up space, office vacancy is forecast to drop to 6% by 2030. 

Office project completions are less than half the long-term average even though 2025 saw the highest volume of completions since 2016. 

Construction pressures are mounting just as Olympic infrastructure ramps up. 

"While it’s good news for landlords with rent growth opportunity, Brisbane-based businesses need to get organised now to ensure their space requirements are met,” says James Vardanega, head of Office Leasing, Queensland, JLL. “We're heading into the tightest office market we've seen in over a decade and companies that wait will face limited options and rising costs." 

In the industrial sector, transport and logistics companies are driving demand with no signs of slowing. Advanced manufacturing companies are also moving apace. Agents are urging companies to secure their industrial space now or risk being priced out. 

For investors, the dynamic presents a positive picture.

“Existing supply-demand imbalances are already compressing vacancy and driving rental growth. As emerging industries scale, supply constraints are expected to intensify, amplifying income growth and enhancing asset values,” says Paul Noonan, head of Capital Markets, Queensland, JLL. 

Noonan welcomes Brisbane's pivot towards a broad-based economy.

“The knowledge economy, healthcare and advanced manufacturing are now driving Brisbane’s growth story, supported by the stable foundation of Queensland’s strategic mining and resources sector. This means the region is more stable and less exposed to cyclical volatility.”