Buyer appetite for new apartments across SEQ remains strong – especially among affluent downsizers – but developers are facing a harsher reality: the cost to bring projects to market has surged beyond viable thresholds. 

The data is sobering. Apartment approvals across the region are down 9% in the year to February 2025. Meanwhile, average construction costs have jumped 19%, with high-rise builds now exceeding $6,000 per sqm. The average total build cost per dwelling in Queensland sits at $690,045. 

“Can It Be Built?” Has Replaced “Will It Sell?” 

RPM QLD Managing Director Peter Neale said that feasibility has overtaken presales as the core challenge; “Presales aren’t the hurdle they used to be. The real question is whether an apartment project can be built at all, and if so, who is capable of delivering it.” 

Labour constraints are only adding to the strain. Public infrastructure works are pulling trades away from the private sector, especially in Brisbane, stretching timelines and blowing out budgets. Fewer builders have capacity (or appetite) to take on new work. 

Shifting the Model to Manage Risk 

Developers are adapting. Basements are being reduced to single levels. Designs are being simplified. Mid-rise formats (4–8 storeys) now account for half of all new apartment supply in SEQ – not just due to planning preferences, but because they’re more viable to deliver. 

Demand Persists, But So Do Delivery Challenges 

Downsizers remain the strongest segment, particularly in Brisbane, the Gold Coast and Sunshine Coast. But expectations are high, and so are prices: 

  • Gold Coast: $18,062/sqm 
  • Brisbane: $15,877/sqm 
  • Sunshine Coast: $12,153/sqm 

These prices reflect both demand and embedded construction pressures. The premium market is holding firm, but broader affordability continues to deteriorate – and the supply gap is widening. 

A Growing Shortfall Without Clear Solutions 

Our latest SEQ Apartment report notes that the feasibility equation isn’t likely to improve soon. Construction costs remain elevated, and the labour shortage persists. “The SEQRP targets a tripling of medium and high density housing by 2046,” Peter said. “But without major reform or intervention, hitting that target will be difficult – especially in Brisbane and the Gold Coast, which are expected to carry 87% of the uplift.” 

In the meantime, developers are making tough calls – scale back, reconfigure, or pause. 

“The market isn’t broken,” Peter said. “There is demand. But without a feasible delivery path, new apartment supply in SEQ will continue to lag – and the housing shortfall will deepen.” 

This article references findings from our May 2025 SEQ Apartment Report. Read the full report here.