Despite unprecedented pipeline activity, the new apartment market is failing to address the cohort of buyers most acutely in need of supply. RPM Group’s survey of new apartments on market in Q1 2026 found that just 3% of stock was priced below $1 million.  

The most common price band across all three SEQ regions is $1.5m-$1.7m, accounting for 16% of total stock. On the Sunshine Coast, the complete absence of one bedroom product means no new stock is available below $1 million.  

This skew towards premium products is occurring precisely as affordability pressures are driving record demand for units. With Brisbane City Council house prices reaching approximately $1.5m (a 67% premium over median unit prices) buyers progressively priced out of the detached housing market are consolidating demand in apartments. Median unit prices rose across all three markets in Q1 2026: Brisbane City up 21% annually to $862,000, the Gold Coast up 17% to $950,000, and the Sunshine Coast up 9% to $870,000. 

The mismatch between what the market needs and what is being delivered is not a matter of developer preference. The cost structure, with average construction costs exceeding $630,000 per unit and presale requirements tied to feasibility thresholds, makes sub-$1 million products unviable at scale under current conditions.  

“Developers are not avoiding affordably priced products by preference. The numbers do not work at scale under current conditions,” explains Neale.  

Brisbane construction cost escalation is at 5% for 2026, rising to 7% from 2027 as Olympic and health infrastructure projects intensify competition for labour. Geopolitical tensions present further risk to fuel sensitive materials, including cement, steel, and metal products.  

The more feasible segment of the new unit market currently sits within the $1.25 million to $2 million price range. Projects outside this band, in the right location, with presales secured early face a narrow margin for error.  

Want the Full Picture?

This article draws on findings from RPM Group’s SEQ Apartments & Townhomes Market Report – May 2026. Access the complete data and market forecasts in the full report.