Queensland’s apartment market is facing mounting pressures as approvals tick up, but actual completions lag behind demand. Rising construction costs, labour shortages, and competition from major infrastructure projects are slowing new apartment developments, particularly across Brisbane, the Gold Coast, and the Sunshine Coast.  

Apartment supply tightens across key regions  

New apartment supply is increasingly concentrated in mid to large sized developments. Smaller, lower revenue projects are becoming less feasible, pushing entry level buyers out of the market. Meanwhile, demand for quality, well located apartments continues to rise, leaving developers to navigate a challenging landscape.  

Rising construction costs impact developers and buyers 

Construction costs are a major factor shaping the market.  

In Brisbane, the average build cost per dwelling rose 39% in the year to June 2025, bringing the average completed apartment cost to $658,000, surpassing Sydney and Melbourne. Across the Gold Coast and Sunshine Coast, high end developments pushed average build costs to $794,000.  

Larger, well designed apartments are in strong demand. Three bedroom units led the market, recording over 2,300 sales across these regions. The surge in owner occupier demand has also seen rents for two and three bedroom units rise faster than one bedroom apartments.  

Labour and material pressures limit supply  

Builders face stiff competition for labour from civil and infrastructure projects, with the value of unfinished work climbing as the 2032 Olympics approach. Most construction materials are also more expensive, with steel being a rare exception.  

Meanwhile, supply still favours mid rise buildings to up eight storeys, limiting overall density compared to high rise developments. This trend further constrains the availability of smaller, affordable apartments.  

Despite these challenges, demand remains strong. Population growth continues, interstate migration is steady, and households increasingly seek spacious, well located apartments.  

This article references findings from our October 2025 SEQ Apartments Report. Read the full report here.