A further suburban subdivision known as Graceville Estate was offered for sale in 1911 on the eastern side of the station along Verney Road. By January 1916 the level crossing dividing this roadway was eliminated and a new station was constructed in March incorporating overhead bridge access. Graceville continued to grow as a small suburban community through the interwar years. Its recreation reserve, which had been gazetted in 1904, became the site of the Graceville War Memorial, unveiled in 1929 and then became known as Graceville Memorial Park. Electricity was connected in 1920 and a picture theatre opened the following year near to the station on Honour Avenue. A Progress Association formed, and the first Agricultural Show was held in 1921. In 1924, six shops were built by Walter Taylor on Honour Avenue between Verney Road West and Rakeevan Road. He was also a driving force behind the building of the pre-cast concrete Graceville Uniting Church building on Oxley Road in 1930). A state school opened in 1928 and a Catholic school in 1937.