Apartment prices in Brisbane are so high that it is more expensive to build new than to buy an existing property, further constraining supply, the Queensland Property Council has warned.
Property Council Queensland Executive Director Jess Caire said feasibility in Brisbane was fundamentally “broken.”
“The average existing unit in Brisbane is now worth $831,000 – meaning it is more expensive to build new supply, than to purchase existing stock,” Ms Caire said.
Sustained increases in construction costs were also shaping the type of product to market.
“Credit where credit is due — there has been a swift and laser sharp focus on boosting housing supply at both state and local government levels,” she said.
“Ensuring we can deliver apartment supply that is accessible to a broader buyer market, including first home buyers, downsizers and owner-occupiers, is essential if we are serious about improving availability.”
Despite improved market activity, the research shows delivery capacity remains the key risk, with around 35 percent of future apartment supply beyond 2027 assessed as moderate to high risk due to elevated construction costs, labour shortages, lengthy approval timeframes and difficulties locking in builders.
The Brisbane Apartment Snapshot conducted by Urbis has found Brisbane is not delivering enough apartments to meet demand, and has been hampered by a lack of feasible construction.
The report shows that while apartment launches and sales improved through late 2024 and 2025, this uplift has not translated into a sustained lift in construction, with many approved or marketed projects failing to proceed.
Urbis Director Paul Riga said the market remained constrained despite signs of improvement.
“While we’ve seen a welcome uplift in apartment launches and sales, this has not flowed through to construction at the scale required,” Mr Riga said.
“Beyond 2027, a significant proportion of Brisbane’s apartment pipeline remains at risk, and without further action, the shortfall will persist.”
The government’s Shaping SEQ: South East Queensland Regional Plan 2023, requires Brisbane to deliver around 8,000 attached dwellings each year to 2031, and more than 7,100 per year beyond that.
Less than half of this target has been delivered each year since 2019. Between 2020 and 2024, Inner Brisbane delivered an average of just 1,400 apartments per year.
While completions lifted to around 2,550 apartments in 2025 and are forecast to approach 3,000 in 2026, this still leaves an annual shortfall of 4,000 to 5,000 apartments.
The Property Council is calling for a suite of policy interventions to support the delivery of new housing, including:
- Further reform to state taxation settings to support institutional and international capital that underpins largescale apartment and build-to-rent projects
- An annual commitment in the State Budget to unlock enabling infrastructure, including apartment projects beyond the Residential Activation Fund
- Leveraging the upcoming review of regional plans to better coordinate planning and infrastructure delivery
- Incentivising local governments to fast-track supply, including planning reform and infrastructure charges relief for critical projects
- Introducing off-the-plan stamp duty concessions for owner-occupiers purchasing apartments
