New Brisbane apartments may remain unbuilt,
Brisbane has not achieved any apartment building targets since 2019, according to recent data.
As a result, experts express concern about the city’s future rental supply being jeopardized.
Across Australia, the construction industry is currently facing numerous significant challenges.
These challenges include rising material costs and shortages of skilled labor, affecting many regions.
However, this issue is particularly severe in Brisbane.
With the 2032 Olympics approaching, along with strong interstate migration, Queensland’s population is projected to reach 6 million by 2046.
Consequently, it is essential for newcomers to Brisbane to have adequate housing options in the coming years.
Unfortunately, new research from Urbis indicates that the city’s supply of new apartments is struggling significantly.
The research states, “Brisbane has not developed the required apartment supply under the regional plan since 2019.”
Moreover, it suggests that this situation is unlikely to change in the foreseeable future.
During a keynote address to the Property Council of Australia, Urbis director Paul Riga made a startling revelation.
He stated that one-third of Brisbane’s planned new apartments may never actually be constructed.
Additionally, Riga noted that apartment projects are taking longer to complete nationwide.
The time required for apartment development, from approval to completion, has increased significantly from 45 months in 2019 to 75 months in 2024.
This prolonged development timeline introduces additional risks to projects, especially in an already unstable environment.
According to the South East Queensland Regional Plan, Brisbane aims to construct 210,800 new dwellings by 2046.
This goal translates to approximately 8,400 new homes needed each year to meet demand.
Out of these new dwellings, 31 percent are planned to be mid- to high-rise apartments, essential for urban growth.
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The city is projected to miss its targets by 1,000 to 2,000 dwellings each year for the next three years.
This forecast is based on current building rates, as reported by Riga.
Moreover, more than 50 percent of renters across the nation reside in apartments.
Consequently, this shortfall in new supply is likely to impact renters the most significantly.
“It is evident from the data that Brisbane has fallen behind its required apartment supply,” Riga stated.
Furthermore, he cautioned that without drastic changes, the city will continue to experience this shortfall.
