$5.4bn apartment crisis: 10,000 homes shelved across Brisbane and Gold Coast

More than 10,000 desperately needed apartments across Brisbane and the Gold Coast have been put on hold, with new figures exposing a staggering $5.4 billion development backlog threatening to deepen southeast Queensland’s housing shortage.

Exclusive data from PRD reveals construction has been postponed or placed on indefinite hold on 112 apartment projects comprising 10,286 dwellings across the two cities, as soaring building costs and chronic labour shortages take their toll on developers.

A render of Breakfast Creek Quarter by Arkhefield.

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In Brisbane alone, 6711 apartments across 71 developments have been deferred, representing almost $2.5 billion in proposed construction.

Another 3575 apartments across 41 Gold Coast developments, worth an estimated $2.9 billion, are also on hold.

The extraordinary figures come amid warnings that many approved apartment projects may never be built, with construction costs more than doubling in just five years and builders booked out for years in advance.

PRD chief economist Dr Diaswati Mardiasmo said the number of apartments in deferred Brisbane developments was almost equal to the number in projects commencing construction.

PRD chief economist Dr Diaswati Mardiasmo.

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She said the figures, which included project data, stock numbers, and development status, were accurate as of September 2026 and exposed the “enormous challenges” facing developers, particularly escalating material and labour costs.

And despite some improvement in Queensland’s residential construction pipeline, she warned the state would remain structurally undersupplied.

Dr Mardiasmo said the shortage was likely to keep apartment prices elevated and relatively resilient to interest rate movements, providing some protection for existing owners but creating further affordability challenges for first-home buyers.

Renters could also face continued pressure as delays to new developments restrict the number of additional homes entering the market.

Richard Temlett, executive director of research at Charter Keck Kramer. Image supplied.

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Source: PRD

Property Council of Australia executive director Queensland Jess Caire said the figures highlighted a fundamental problem with the state’s housing supply.

“Queensland doesn’t have a shortage of housing projects in the pipeline, it has a shortage of homes making it through to delivery,” Ms Caire said.

“More than 10,000 apartments sitting on hold is a stark reminder that approving housing is only part of the equation. If projects can’t be financed, built and occupied, they won’t help the families looking for somewhere to live.”

Ms Caire acknowledged progress through state planning reforms and the Residential Activation Fund, but called for greater action to remove development barriers, expand workforce capacity and accelerate infrastructure delivery.

“The reality is you can’t tax, regulate or constrain your way to more housing,” she said.

A render of the Trilogy apartment project proposed for Kangaroo Point.

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A render of the Trilogy apartment project proposed for Kangaroo Point.

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Property advisory firm Charter Keck Cramer has warned the situation could become even more challenging, with construction costs for a comparable middle-ring Brisbane apartment project surging 105 per cent between 2020 and 2025.

The cost per dwelling jumped from about $345,000 to almost $710,000, while total project costs more than doubled.

Many Brisbane apartment builders already have their books filled for the next three to four years, with the consultancy describing securing a third-party builder as “extremely difficult”.

And the pressure is expected to intensify as Olympic construction ramps up, with Charter Keck Cramer forecasting Brisbane’s existing labour and material shortages will worsen from the 2027-28 financial year.

Jess Caire of the Property Council Australia during a press conference in Brisbane. Picture: Tertius Pickard.

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National executive director Richard Temlett said fears of an apartment glut in Brisbane and the Gold Coast were misplaced.

“I don’t believe there will be any oversupply. There is a major shortage of builders on both the Gold Coast and Brisbane, and if anything much of the approved stock won’t get built,” Mr Temlett said.

Among the projects identified as deferred in the PRD data are the 752-apartment Breakfast Creek Quarter development, a 551-apartment project at 801 Ann Street in Fortitude Valley, and the 525-apartment Trilogy development at Kangaroo Point.

A proposed 513-apartment development at Mary and Margaret streets in the CBD is also listed.

The La Pelago development site between Pine Ave, Ferny Ave and Norfolk Ave, on the Gold Coast. Picture: Glenn Hampson.

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An artist’s impression of La Pelago, which is yet to start construction. Picture: Supplied.

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On the Gold Coast, major deferred projects include the 889-apartment La Pelago development in Surfers Paradise, 533 apartments proposed for stages two and three of Paradiso Place, and the 511-apartment Harbour Cove development at Biggera Waters.

The PRD data also identifies 10 abandoned residential projects across Brisbane and the Gold Coast, representing 49 proposed dwellings and an estimated $22.5 million in development value.

They include a proposed $7.5 million, 17-unit development at Alderley, a $4 million apartment project at Zillmere and another $4 million development at Chermside.

While smaller than the major developments currently on hold, the abandoned projects highlight the risk that some proposed housing will never reach construction.

However, developers contacted by The Courier-Mail stressed that projects classified as deferred had not necessarily been abandoned.

Aria Property Group confirmed it still intended to deliver its proposed Urban Forest development, but was prioritising the launch of its Sanctuary Residences project, which sold $573 million worth of apartments off-the-plan before public release.

Another developer, Stockwell, said existing commercial tenancies were preventing construction from commencing until leases expired.

“We have existing tenants with tenure and are unable to commence until lease expiry,” Stockwell’s head of retail and marketing, Julianne Thannhauser, said.

“In the meantime, we are working with council on a revised application for a staged redevelopment.”

The responses highlight the varied reasons projects can be delayed, from existing lease arrangements and planning changes to shifting development priorities.

The findings raise serious questions about how much of southeast Queensland’s future apartment pipeline will actually be delivered.

An artist’s impression of a project proposed for 801 Ann St, Fortitude Valley.

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Urbis research commissioned by the Property Council of Australia found 35 per cent of Brisbane apartment projects scheduled beyond 2027 were considered at moderate or high risk of delay.

On the Gold Coast, about 60 per cent of apartments slated for completion in 2028 and 2029 faced similar risks.

Urbis director Paul Riga said strong demand for Gold Coast apartments was not enough to overcome the challenges facing developers.

“The Gold Coast apartment market has held up relatively well, supported in part by premium projects and consistent buyer demand,” Mr Riga said.

“But when you look beyond the projects already underway, the picture becomes more uncertain. Approvals have been volatile, delivery timeframes have lengthened, and a significant share of future stock is still exposed to delay or withdrawal.”

An artist’s impression of an apartment project planned for 25 Mary Street in Brisbane’s CBD.

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An artist’s impression of an apartment project planned for 25 Mary Street in Brisbane’s CBD.

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He warned the consequences would be felt over several years, affecting both the availability of new apartments and the broader housing market.

Charter Keck Cramer has also warned of “settlement risk on the horizon”, with some Brisbane developers seeking alternative ways to sell apartments amid concerns buyers may no longer qualify to borrow the amounts they expected when signing contracts years earlier.

There are, however, some signs of improvement in the broader construction sector.

Dr Mardiasmo said PRD’s latest Queensland figures to August 2026 showed the number of dwellings in the development pipeline had declined significantly over the previous month, although the value of residential construction projects proceeding had increased.

But she said the improvement would not be enough to overcome Queensland’s underlying housing shortage.