RPM SEQ Apartments and Townhomes Market Report - May 2026

What’s Inside

Executive Summary

Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now.

The price gap between detached housing and what buyers can realistically afford is widening, and the established unit market is taking the weight of it. With Brisbane LGA house prices sitting at around $1.5 million, buyers who have been progressively priced out of the established house market are consolidating demand in apartments.

Median unit prices rose across all three major markets in Q1 2026. Brisbane City recorded the strongest annual growth of 21%, reaching $862,000. The Gold Coast led on absolute price at $950,000, up 17%, driven by premium coastal products. The Sunshine Coast followed at $870,000, up 9%. The premium that detached housing commands over units is substantial; 67% and 68% in Brisbane and the Gold Coast respectively, and 54% on the Sunshine Coast.

Prices across the rental market are rising across all unit configurations and regions, and bond lodgements are trending down as stock tilts toward owner occupier purchases rather than investor held dwellings.

Supply is responding, though the pipeline and the market are moving at different speeds. Apartment approvals rose 86% to 12,682 in the year to February 2026, the highest level since 2016, and unit commencements rose 48% year on year to 5,453 in Q4 2025. The pipeline of dwellings under construction is currently 31,530 units, approaching the 2016 peak.

However, delivery timelines have blown out by 50% against that cycle (averaging 30 months from approval to handover compared to 20 months a decade ago), meaning stock is accumulating in the pipeline considerably faster than it is reaching the market. What is being delivered is skewed heavily toward the premium end; in fact, only 3% of new apartments on market surveyed in March Quarter were priced below $1 million. This leaves the most acute demand largely unaddressed by new supply.

Peter Neale

Managing Director

Queensland & New South Wales petern@rpmgrp.com.au

Clinton Trezise

Managing Director

Queensland & New South Wales clinton@rpmgrp.com.au

Australian Economic Indicators

Despite slowing job creation nationally, Victoria has accounted for a third of all new employment growth in the country over the past year.

Apartments Market Financing Outlook

Daniel Gradwell

Associate Director of Property

What do you see as the biggest opportunities for the SEQ market going forward?

The challenge and the opportunity are really the same answer. On the demand side, the fundamentals are exceptionally strong with population growth across a range of demographics, a tight labour market, and solid income growth. It’s young people being priced out of Sydney, retirees downsizing, interstate migrants. You get that full spectrum, which is a real positive.

The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward. Things like modular construction are becoming more prevalent and are a good part of the mix, but they’re not a step-change for the overall supply story. The Olympic pipeline compounds this. There’s roughly six years of major infrastructure work now locked in across SEQ, which means competition for labour and materials that housing faces isn’t going away anytime soon. The opportunity is real, and the fundamentals are there. It’s really just about how well the market can respond to meet it.

The challenge is bringing enough supply to market to meet demand, and nothing on the horizon makes that straightforward.

What is ANZ’s view on construction cost pressures, and how does that affect how you assess new apartment projects?

We don’t have specific internal escalation numbers we’re applying, but the direction is clear and our approach has shifted. Fixed price contracts remain preferred, costplus is still harder to get fully comfortable with from a banking perspective, but we did get more comfortable with cost-plus through the peak of COVID-era escalation, and that flexibility is likely to continue given the current environment.

What we lean into heavily is contingencies (they need to be adequate) and the track record of the developer and builder. Do they have the financial position and expertise to absorb an unsettled cost environment? Are they working with trades they have established relationships with? The last thing anyone wants is a subcontractor going under because they’re locked into a price they can’t deliver at. So, there are a lot of non-financial factors that weigh into the assessment alongside the numbers.

Demand and Supply

Investor and Owner Occupier Loans

Investor lending in Queensland recorded strong growth over calendar year 2025, with the total number of investor loans rising by 8% to 50,044.

Average loan sizes also continued to increase, up 12% to $658,748.

Owner occupier lending saw more modest growth, rising 3% to 73,242 and approaching the five-year average of 76,674. Average loan size rose by 14% to $684,061, surpassing the average investor loan size.

Despite both figures rising, investor and owner occupier loan values remain below the cost of constructing new apartments, suggesting ongoing demand from downsizers who are less reliant on financing.

and Owner Occupier Loans

Building Approvals

Queensland building approvals have strengthened across all property types over the past year.

Apartment approvals saw a significant uplift, rising 86% to 12,682 in the year to February 2026, the highest level since 2016.

Brisbane has overtaken the Gold Coast the leading region for apartment approvals with close to 5,000 apartments approved over the past 12 months. Apartment approval activity has also broadened beyond traditional inner city markets. Moreton Bay recorded 639 apartment approvals over the last 12 months with increased activity in the Redcliffe area, while Cairns also saw a significant uplift with a large social housing project approved.

Approvals by Dwelling Type

Apartment Approvals

Apartment Approvals by LGA

New Unit Commencements

Unit commencements have also strengthened significantly and are now approaching levels comparable to house commencements.

In Q4 2025, unit and other residential commencements rose 48% year on year to 5,453, marking the highest level recorded since 2018 and well above the long-term average of 3,870 units.

Unit Construction and Completion Timeframes

Units Under Construction and Completed

Units and Other Residential (Under Construction) Units and Other Residential (Completed)

Construction Timeframe

■ Approval to Commencement Times (Months) ■ Commencement to Completion Times (Months)

The number of units under construction is also approaching a ten-year high, sitting at around 31,530 in Q4 2025. This is closing in on the previous peak of 32,552 recorded in September 2016, though today’s pipeline is taking considerably longer to move through.

Delivery timelines have blown out by around 50% compared to the 2016 peak. In the last financial year, the average apartment took roughly 4 months to commence after approval and 26 months to complete, totalling around 30 months from approval to handover.

A decade ago, the same process averaged 20 months. Longer construction timelines are keeping projects in the pipeline for longer and putting additional strain on trade and labour supply.

Construction Cost Breakdown

Average build costs for new apartments in Greater Brisbane are higher on a per-unit basis than both Greater Sydney and Greater Melbourne.

In 2025, the average construction cost reached $630,000, up 2% on the previous year, compared to $618,832 in Greater Sydney and $575,756 in Greater Melbourne.

Across the rest of Queensland, including the Gold Coast and Sunshine Coast, construction costs are higher still, averaging $817,418 per unit. This is due to the larger and more premium apartment products being delivered in coastal markets.

Average Build Cost by Region - 12 Month Rolling

Construction Price Movements

Construction input costs* in Queensland eased slightly, falling 0.3% in Q4 2025, while construction output** costs rose 1.5% over the same period.

The gap between the two points to continued margin pressure in the construction sector, driven by labour shortages and strong demand tied to major infrastructure delivery, including Olympic related projects.

Looking ahead, costs face further upward pressure. Escalating geopolitical tensions, particularly the Middle East conflict, are likely to push fuel prices higher and disrupt supply chains, with flow on effect to both input and output costs.

Construction Input costs refer to material costs

Construction output costs refer to the price a builder charges to deliver a completed dwelling.

Inputs and Outputs to Housing Construction

Construction Cost Breakdown

Prices for installed gas and electrical appliances, electrical equipment, and cement products have continued to rise. Materials with high sensitivity to fuel prices, including cement, concrete and sand, steel, and other metal products, face further escalation risk given ongoing geopolitical tensions.

Other Materials

Installed Gas and Electrical Appliances

Electrical Equipment

Plumbing Products

Other Metal Products

Steel Products

Cement Products

Concrete, Cement, and Sand

Ceramics

Timber and Joinery

All Inputs to Housing Construction

For projects currently in procurement or early construction phases, this translates to tighter contingencies, potential scope trade-offs, and an increased likelihood that fixed-price contract positions will come under strain. Budgets established even six to twelve months ago may no longer reflect current market reality.

Value of Construction Pipeline

Value of construction work yet to be done for both residential and non-residential projects are at their highest level on record, reflecting the sustained strength and depth of the Queensland pipeline.

This is an encouraging signal, demand is real, committed, and broad-based across sectors. However, that same volume of work is now competing for the same pool of labour, materials, and contractor capacity. With the pipeline this full, the risk isn’t a lack of opportunity, it’s the ability of the market to absorb and deliver it without cost and schedule pressures compounding further.

of Construction Work Yet To Be Done

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

Unit Pricing and Rentals

Established Unit Prices and Sales Volume

Median unit prices continued to rise across Brisbane City, the Gold Coast, and the Sunshine Coast through Q1 2026. The Gold Coast recorded the highest median at $950,000, up 17% annually, driven by premium coastal products.

The Sunshine Coast followed, with a median price of $870,000, up 9% over the year, while Brisbane City recorded a median of $862,000, posting the strongest annual growth at 21% annually.

Across the combined market, unit markets rose 18% over the year. Unit sales softened in Q1 2026 as settled sales were only partially recorded. The trend from the previous quarter suggests that the combined total number of units sold has been reducing due to lower overall listings.

Established Unit Prices

Established Unit Prices

Established Unit Sales Volume

Established Unit Sales Volume

Value Relativity - Houses vs. Units

The widening gap between median house and unit prices continues to drive demand for units. With house prices in Brisbane LGA reaching approximately $1.5 million, affordability constraints are pushing buyers toward the unit market.

The Gold Coast and Brisbane City Council show the largest price differentials, with detached housing selling at 68% and 67% premiums, respectively, over units. The Sunshine Coast recorded a 54% premium.

While unit prices have grown consistently over time, house prices have seen more pronounced cyclical spikes. The relative value gap between the two appears to be stabilising and gradually returning toward its long term average.

Value Relativity - Houses vs. Units

Coast LGA

$1,400,000 $1,600,000 $1,800,000

$1,000,000 $1,200,000

$0 $200,000 $400,000 $600,000 $800,000

Sunshine Coast LGA

Rental Market

Median rents for one-bedroom units increased across all markets in Q1 2026.

Brisbane was up 12% to $580, the Gold Coast up by 9% to $630, and the Sunshine Coast (the most affordable of the three), up 11% to $490.

Two-bedroom units continue to account for the highest share of bond lodgements across the regions. Rents for this configuration rose 6% in Brisbane to $715, 7% on the Gold Coast to $800, and 4% on the Sunshine Coast to $650.

Despite rental growth, bond lodgements have trended down over five years, pointing to a shift in stock toward owner occupier purchases rather than rental supply. Tightening vacancy conditions are contributing to continued upward pressure on rents.

Rental Market

Internal Square Metre Rates

The Gold Coast recorded the highest internal square metre rates for new apartments in Q1 2026, averaging $18,357 — a reflection of the market’s ongoing appetite for larger, premium coastal product rather than any broad-based price surge. Rates vary considerably across LGAs and bedroom configurations, shaped by location, product type, buyer profile, and apartment size and design.

Price, Size, and SQM Rates

There is a clear positive relationship between apartment size and price per square metre, with larger apartments commanding higher rates as luxury product dominates the apartment market across SEQ.

Affordable stock is scarce, with just 3% of all apartments on market surveyed in March priced below $1 million. The most common price band across all three regions is $1.5m–$1.75m, accounting for 16% of total stock, while approximately 50% of stock is priced below $2m. On the Sunshine Coast, the absence of one bedroom product means no stock is available below $1m.

The majority of new apartments across SEQ fall within the 75–150 sqm internal size range. Around 25% of stock is concentrated in the 75–100 sqm range, while a further 42% fall within the 100–150 sqm bracket, indicating that more than half of available stock has an internal size below 150 sqm.

At a regional level, Brisbane’s stock is predominantly concentrated in the $1.25m–$2m price range. The Gold Coast carries the highest share of premium stock, with 11% of apartments priced above $5m.

Stock on Market by Price and Size

$10,000,000

$9,000,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

and

Rates - SEQ

-

Source: RPM Market Intelligence and Terralytics - new apartments on market

and

- Gold

Source: RPM Market Intelligence and Terralytics - new apartments

Price, Size, and SQM Rates - Sunshine Coast

■ Birtinya ■ Bokarina ■ Maroochydore % Share of Stock

■ Caloundra ■ Kings Beach ■ Lake Kawana ■ Noosaville ■ Pelican Waters ■ Buddina

on Market by Price Point

Birtinya

Noosaville ■ Pelican Waters ■ Buddina Source: RPM Market Intelligence and Terralytics - new apartments

Development Sites

James Matley

Sales Director - QLD & NSW

Transactions & Advisory james@rpmgrp.com.au

Construction cost escalation, labour scarcity, and a narrowing window before Olympic driven pressure intensifies have materially reshaped site feasibility across SEQ. The three markets are each responding differently, and the sites that ‘stack’ today look different to those that presented a bankable outcome only recently.

Brisbane construction escalation is running at 5% for 2026 and forecast to lift to 7% from 2027 as Olympic and health infrastructure projects draw deeper on a finite labour pool. This is a sharper trajectory than Melbourne at around 4% over the next four years, or Sydney, only forecast to reach 5% by 2028.

The effect has been to collapse the pool of sites that can genuinely support a feasible end product. The market is currently clearing at an average end product rate of $17,600/sqm, a threshold most active groups are now treating as the floor for a bankable project.

The SEQ apartment market is polarising rapidly — strong sites with genuine scarcity value are transacting, everything else is facing discount or delay. Capital remains active but has become highly selective, and that divide will only sharpen as Olympic-driven cost pressure intensifies.

Sites reliant on investor driven one and two bedroom stock at lower price points are struggling to transact at carried value, and some form of discount is expected through 2026. A-grade riverfront and premium lifestyle sites are transacting well. Mid tier sites in less established pockets are taking longer to clear. RPM has several Brisbane opportunities coming available off and on market that sit firmly in the A-grade cohort.

On the Gold Coast, end product rates average $18,357/sqm, the highest of the three SEQ markets, reflecting the depth of downsizer, interstate, and offshore demand for coastal product. Absolute beachfront and riverfront sites with genuine scarcity value are clearing at figures that would have been difficult to underwrite two years ago. Sites one or two streets back are attracting heavier scrutiny, with several forced sales occurring in late 2025 and early 2026. Buyers are paying for attributes that cannot be replicated and discounting those that can. RPM’s upcoming campaigns are aligned to sites where scarcity attributes hold up to scrutiny.

The Sunshine Coast remains the most affordable of the three markets. End product rates average $14,192/sqm, while build costs are elevated due to a limited trade base and distance from the Brisbane labour pool. Strong interest is concentrating around Maroochydore, Mooloolaba, Caloundra, and the Birtinya Kawana corridor. Revenue growth in this market is expected to close the gap with its southern counterparts over time.

Across all three markets the combined SEQ end product average sits at $17,599/sqm. The capital is there and appetite is strong, but it is discerning capital. The sites that proceed are those that can demonstrate a clear and defensible path from acquisition through to delivery.

For more information on development site opportunities, contact James Matley james@rpmgrp.com.au

Note: Locations are approximate only, Data is rounded to the nearest 000.

Outlook

Construction costs are rewriting the feasibility rulebook across Greater Brisbane — and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through.

Construction costs remain the central constraint and the numbers across Greater Brisbane are striking. The average cost per unit reached $630,000 in 2025, higher than both Sydney and Melbourne. This is largely driven by labour shortages and the sustained infrastructure spend ahead of the 2032 Olympic Games.

Construction output costs rose 1.5% in Q4 2025 while input costs eased only marginally, pointing to continued margin compression that shows little sign of relief. Geopolitical tensions present a credible risk to fuel-sensitive materials through 2026 and into 2027, adding a further layer of uncertainty to project feasibilities.

With an average cost exceeding $630,000 per unit and loan values for both investors and owner occupiers sitting below that threshold, feasibility depends heavily on presales at price points the market is willing to absorb. The mismatch is sharpest at the affordable end. Units priced below $1 million represent just 3% of current stock, and the cost structure makes that segment difficult to serve. Developers are not avoiding ‘affordably priced’ products by preference, the numbers do not work at scale under current conditions.

The more feasible segment of the unit market sits within the $1.25 million to $2 million range, where demand is concentrated, presale conditions are more achievable, and the buyer profile is less rate sensitive. The premium end of the market remains active, but it is a specialist play that requires marrying the right product with the right location.

The pipeline will keep moving but with costs unlikely to ease materially and delivery timelines extending, the margin for error on product positioning and price points is narrow. Projects that land in the right price band, in the right location, with presales secured early are the ones set for success.

Clinton Trezise

Managing Director

Queensland & New South Wales

clinton@rpmgrp.com.au

Peter Neale

Managing Director

Queensland & New South Wales petern@rpmgrp.com.au

For more information, please visit: www.rpmgrp.com.au

SEQ Team

Project Sales & Marketing

Peter Neale

Managing Director

Queensland & New South Wales petern@rpmgrp.com.au

Market Intelligence

Michael Staedler

General Manager

Market Intelligence m.staedler@rpmgrp.com.au

Transactions & Advisory

James Matley

Sales Director - QLD & NSW

Transactions & Advisory james@rpmgrp.com.au

Clinton Trezise

Managing Director

Queensland & New South Wales clinton@rpmgrp.com.au

Jasmin McDougall

Project Marketing Manager

Queensland & New South Wales jasmin@rpmgrp.com.au

Natalia Martinez

Project Marketing Coordinator

Queensland & New South Wales natalia@rpmgrp.com.au

Andrew Raponi

Senior Research Manager

Market Intelligence a.raponi@rpmgrp.com.au

Simon Brinkman

Research Manager - QLD & NSW

Market Intelligence simon@rpmgrp.com.au

Megha Saha

Research Analyst - QLD & NSW

Market Intelligence megha@rpmgrp.com.au

Tim Hyland

National Strategy Manager

Transactions & Advisory tim@rpmgrp.com.au

Edward Rostron

Transactions Associate - QLD & NSW

Transactions & Advisory edwardr@rpmgrp.com.au

Phillip Nguyen

Transactions Associate - VIC

Transactions & Advisory phil@rpmgrp.com.au

Unlocking Australia’s Property Landscape

For detailed insights or custom reporting, contact the team at: contactus@rpmgrp.com.au