South East Queensland’s apartment market is entering one of its most competitive phases in years according to RPM's recent SEQ Apartments Report. While development approvals have ticked up, the number of dwellings reaching completion continues to fall well behind demand. Rising construction costs, labour shortages, and fierce competition from major infrastructure projects are slowing delivery and squeezing feasibility across the region.
Across Brisbane, the Gold Coast, and the Sunshine Coast, supply is tightening fast. New stock is increasingly skewed toward mid to large-sized apartments, leaving smaller, lower-revenue projects largely unviable. Entry-level buyers are being priced out, even as demand for quality, well-located apartments continues to climb.
Costs remain the key pressure point. In Brisbane, average build costs per dwelling surged 39% in the year to June 2025, pushing completed apartment costs to $658,000, higher than both Sydney and Melbourne. Elsewhere in the state, average build costs reached $794,000, lifted by premium high-end projects on the Gold Coast and Sunshine Coast.
Buyers, however, are chasing bigger, better-designed residences. Three-bedroom apartments are proving particularly popular, with more than 2,300 sales recorded across the three regions. Owner-occupier demand for larger dwellings is reshaping the market, rents for two and three-bedroom units are rising far faster than for one-bedders, as households prioritise space and liveability.
Supply pressures aren’t easing
Apart from steel, most building materials remain expensive, and developers continue to compete with civil and Olympic infrastructure projects for scarce labour. Density trends are also shifting, with new supply favouring mid-rise formats up to eight storeys, limiting overall yield and intensifying the squeeze.
Despite these headwinds, demand remains unwavering. Population growth, steady interstate migration, and a lifestyle-driven preference for space are underpinning buyer confidence. For developers, well-located, larger apartments remain the safest play, but delivering them demands careful balancing of cost, approvals, and design feasibility.
The data paints a clear picture. Apartment commencements for SEQ sit at a four-year low, with just 862 new units registered in Q2 2025. The gap between what buyers want and what developers can profitably deliver continues to widen, reinforcing the focus on premium, higher-margin projects.
Even in the development land market, competition is intense. Modest parcels across SEQ are attracting local, interstate, and international attention, as developers chase limited opportunities with zoning and scale. Capital remains deep, but feasibility is under more pressure than ever.
The fundamentals remain strong, migration-led growth, a shortage of new stock, and a pipeline of infrastructure investment continue to support values. Yet the path forward is slightly narrow. Those who can navigate costs, approvals, and delivery constraints will find a market ready to pay for quality, even as smaller, lower-cost projects become increasingly difficult to deliver.
