New housing supply across SEQ is expected to remain constrained for some time. Elevated construction costs, a shortage of skilled trades, and tighter developer margins continue to weigh on delivery. Even with population growth easing, the cumulative undersupply will take years to unwind.

Rising costs and labour shortages hit feasibility

Construction costs are still rising from an already high base, continuing to pressure project feasibility. In Brisbane, major infrastructure builds are also drawing labour away from residential work, making apartment delivery even harder.

Developers are adapting. Many are limiting basements to a single level to reduce contingency costs. Others are working more closely with subcontractors to boost productivity through stronger partnerships.

Despite near-term affordability constraints keeping a lid on price and rent growth, the longer-term outlook remains tight. Limited new supply is expected to support medium-term growth, especially as demand builds. 

 

Mid-rise projects take the lead

Around half of all new apartment supply is now being delivered through 4-8 storey buildings. Higher density projects are facing more industrial pressure, which is shifting the focus to these mid-rise formats.

The SEQRP targets are ambitious – and urgent

The South East Queensland Regional Plan (SEQRP) calls for a tripling of medium and high density housing between 2021 and 2046, with Brisbane and the Gold Coast expected to deliver 87% of that target. But rising costs and labour shortages could derail progress, deepening the national housing crisis if not addressed.

A split market but early signs of recovery 

High end products aimed at downsizers continue to perform, while broader market apartment projects have slowed. Fewer developers are actively marketing these products. However, early signs of returning investor interest are emerging — especially in areas set to benefit from Olympic infrastructure or clear supply gaps.

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