Looking at SEQ, what are the biggest risks developers are facing right now?

The main challenge has shifted. A couple of years ago, everyone was worried about construction costs and escalations. Costs are still high, but at least growth has stabilised and become more predictable. The bigger issue now is access to people; builders, contractors, and trades. There’s enormous competition for resources. The industrial sector is booming, as well as government funded infrastructure, and that’s pulling builders away from residential projects. Both of these options offer attractive work: stable, well funded, and with fewer cost risks. That makes it harder for housing projects to secure the teams they need. From ANZ’s side, we mitigate that through dedicated state based construction managers who understand the local market and can identify risks early, but it’s still a key consideration for developers.

Are there any notable differences in lending appetite between SEQ and regional Queensland?

It really depends on the scale of the regional centre. Markets like the Gold Coast, Sunshine Coast, Cairns, and Townsville still sit within our core appetite. They’re supported by strong population growth and active local economies.

Once you move into smaller, regional markets, it gets tougher. Pre-sales take longer and population growth isn’t as strong, so projects need to demonstrate clear demand. That said, if the fundamentals stack up and pre-sales flow, we’re still active in those areas.

There’s growing interest in prefab and modular housing. How is the finance sector approaching this space?

It’s a bit more complicated, and policies vary between lenders. Some have quite clear frameworks that align modular projects with standard development finance. We’ll definitely see more of this over time, not just because of affordability, but because modular homes can improve productivity.

Construction productivity in Australia has actually been going backwards for years. Prefab homes can help reverse that trend, while also rebuilding a bit of local manufacturing capability. So, it’s not the silver bullet, but it’s a really important piece of the housing supply puzzle.

This article references findings from our December 2025 SEQ Greenfield Market Report. Read the full report here.