Brisbane, the Gold Coast, and the Sunshine Coast are set to welcome 887,000 new residents by 2046. This rapid population growth will intensify pressure on housing supply, particularly in the apartment sector. While the South East Queensland Regional Plan (SEQRP) encourages higher density living, especially in Brisbane, developers face significant delivery challenges in meeting demand. 

Downsizers Drive Demand, But Challenges Persist 

Despite rising prices and construction costs, new apartment projects in SEQ continue to attract strong demand. A key factor driving this demand is downsizers—older Australians seeking low-maintenance living in premium locations like Brisbane, the Gold Coast, and the Sunshine Coast. This demographic is expected to be the largest growth driver in the region until 2046, reshaping the types of apartments developers deliver. 

However, the approval process remains sluggish. As of February 2025, apartment approvals were down 9% year-on-year, with construction costs climbing 19% over the past year to an average of $690,045 per square metre. Capacity constraints in the construction sector mean the key risk has shifted from presales to project delivery. 

Price and Rent Increases: A Strained Market 

Despite these challenges, sale prices for new apartments continue to rise. The Sunshine Coast now commands $12,153 per square metre, Brisbane is at $15,877 per square metre, and the Gold Coast tops $18,062 per square metre. These figures highlight the premium new apartments command over established stock, driven by location, design, and amenities. However, they also point to a widening affordability gap for many buyers. 

Rental markets are also feeling the strain. Over the last five years, rental listings have dropped 2%, driven by investors selling to owner-occupiers. This has pushed up rents, particularly for larger apartments. For example, rents for three-bedroom apartments on the Sunshine Coast rose 11% over the past year. 

The Road Ahead for Developers 

As developers strive to meet market demand, they must balance managing delivery risk with rising construction costs. With fewer builders capable of handling large-scale projects, success will depend on delivering well-located, design-led developments with a clear value proposition. The downsizer market is ready to buy, and it’s rising quality expectations that will define the success of SEQ’s next wave of apartment developments. 

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