Simplicity, Collaboration Urged as Costs Doom SEQ Projects

The cost to build a highrise in South-East Queensland has skyrocketed 140 per cent in less than a decade as developers go back to the drawing board in a bid to make projects work. Data in RPM Group’s first SEQ Apartments Report shows the construction cost per approved apartment in the region averaged $685,166 in the year to February this year. Meanwhile, the cost to build a highrise now exceeds $6000 per square metre, up 16 per cent on the previous year and an eyewatering 140 per cent rise from the peak of Brisbane’s 2016 apartment boom. The surge in costs “past critical thresholds” is now filtering through to the market. Unit sales by volume declined 23 per cent in the year to March of 2025 despite the market being “chronically undersupplied” . The feasibility issue is disproportionately impacting apartments, with approvals across the state down 9 per cent to 6780 in the year to February. By contrast, house and townhouse approvals rose by 14 per cent and 17 per cent respectively, the RPM Group report found. Reshaping projects The critical situation has prompted a reshaping of the ways projects are conceived and delivered, according to RPM Group managing director Peter Neale. Building elements once thought essential are being stripped back, such as basements being reduced to single levels where possible. “Designs are being simplified to reduce cost risk,” Neale said. ▲ RPM Group managing director Peter Neale. “Apartments still need to be positioned well, closer to infrastructure and amenity for people to have interest. “But we also need to collaborate to form new types of product to provide housing for everybody, not just owner-occupiers, whether that’s social housing, coliving ... that all plays a part.” In fact, despite apartment projects struggling to get out of the ground, midrise formats now account for around half all new apartment supply in the region, highlighting a shift in the type of product developers are able to bring to market. “[That’s] not necessarily because of planning preferences, but because that’s the most viable way to deliver under current conditions,” Neale said. Price points South-East Queensland’s population is to grow by 887,0000 residents between 2021 and 2046, the RPM Group said, and the biggest demographic shift will be in the 65-plus age group. “Higher construction costs have driven per square metre prices, so ultimately, we’re providing a product for those downsizers, which is good, in terms of them getting out of their homes and freeing up that part of the market,” Neale said. Brisbane Median Internal Rate Per Square Metre ▲ Source: RPM Group’s SEQ Apartments Report But it’s a double-edged sword as these buyer groups often demand higher standards and quality, pushing prices up. New apartment prices are now $18,062 per square metre on the Gold Coast, $15,877 per square metre in Brisbane ,and $12,153 per square metre on the Sunshine Coast, according to RPM Group. With major infrastructure projects, including the Cross River Rail and the 2032 Games, the pressure is also on for builder capability and availability. Gold Coast Median Internal Rate Per Square Metre ▲ Source: RPM Group SEQ Apartments Report “Increasing skilled labour forces is key, and that will need government intervention,” Neale said. “But there’s no silver bullet to fix all this, it requires a culmination of everything to make a difference. “We need to really look at other forms of building, everything from the likes of cross-laminate timber to those mid-rise formats. “It’s about getting a project to stack correctly by being smarter with design, maximising and simplifying it, working with trade bases to have good partnerships, and working with councils and property industry agencies to ensure we’re all working together to deliver products that cater for everyone.”

Simplicity, Collaboration Urged as Costs Doom SEQ Projects

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