“Scary” numbers: We are only building half the housing we need

“Of concern, our analysis is potentially optimistic given that there are well-publicized headwinds in the multifamily sector, with a third of Brisbane’s supply at medium to high risk of remaining undeveloped by 2027.”

“Across the country, we are seeing residential construction projects taking longer than ever before, with the time it takes to develop an apartment building (approval to completion) increasing from 45 months in 2019 to 75 months in 2024.”

Urbis director Paul Riga says a lack of productivity and financial viability of projects has slowed the delivery of housing in Brisbane.

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“What we are seeing and hearing from developers is that completion timelines could also be pushed back further. Productivity and financial viability of projects are contributing to the delays in construction projects in south-east Queensland.”

Mr. Rivera said the cost of purchasing land, designing, building and then selling apartments had deterred many developers.

“You can only make housing work if someone can afford more than a million dollars now. “So why take the risk?” he said.

“We have a downsizing market that wants low-maintenance housing and a market for first-time home buyers whose prices are quite high.

“We have an entrenched, unionized, political and socio-environmental environment – ​​and a limited number of developers.”

New research shows Brisbane’s housing supply pipeline has struggled to meet demand since 2019.

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Jess Caire, chief executive of the Property Council of Australia Queensland, said the state government needed to rethink how it leveraged the institutional capital needed to make large housing projects viable.

“As we can see from this data, something significant needs to change if we are to get close to our housing goals,” Ms Caire said.

“Feedback from investors is that many high-density residential developments in Brisbane are simply not viable due to a combination of declining productivity, limited infrastructure provision and the imposition of government taxes.

“Taxes that target international capital are particularly destructive in the current environment.”

Jess Caire, managing director Queensland, Property Council of Australia, says the state government needs to rethink how it uses the institutional capital needed to make large housing projects viable.

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