1100 units in limbo: The projects at risk of not going ahead

More than a quarter of Brisbane’s apartment projects are at risk of not getting off the ground, as new figures reveal more than 1100 units are stuck in limbo.

The research conducted by Urbis for the Property Council of Australia reveals apartment completions are falling well short of targets, with 27 per cent of future supply at risk of not being completed by 2028.

Exclusive research by PRD reveals there are currently 22 apartment projects either abandoned or deferred in Brisbane, putting some 1100 units in limbo — plus hundreds more that remain incomplete well past their construction due dates.

Brisbane’s apartment supply pipeline is falling well short of targets. Picture: David Clark.

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Under the South-East Queensland Regional Plan, Brisbane is required to build about 7,977 apartments annually from 2021 to 2031.

But, according to the research, only about a quarter of this target — around 2000 — has been delivered each year since 2019.

Urbis director Paul Riga said tracking of forward apartment completions suggested 2026 to 2028 would “at most” deliver around half of the target — with some projects at risk of not proceeding at all.

Urbis director Paul Riga.

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“With competition for labour expected on the back of significant infrastructure investment, action needs to be taken now to ensure dwelling development activity increases beyond 2028,” Mr Riga said.

Property Council Queensland executive director Jess Caire said apartment completions were projected to increase to around 4000 units in 2025, however, that was still well short of the targets and the bulk of new supply beyond 2025 was difficult to predict.

“The data tells a stark reality and there is no sugar coating the scale of the challenge in front of us — building over 7000 apartments a year would be a quantum leap forward in comparison to what we have been able to achieve in recent years,” Ms Caire said.

Jess Caire is the Executive Director of the Queensland Division of the Property Council of Australia. Image supplied.

“The good news is we know we can build the number of apartments we need because we have done it before.”

Ms Caire said 9527 and 9128 units respectively were built in 2016 and 2017, but industry headwinds had increased significantly, with high construction costs, declining

productivity, acute labour shortages, and tax settings, which had become increasingly regressive.

“To remedy this, we need to be bold and pull every available policy and taxation lever to boost supply because every year we miss our targets the greater the challenge becomes,” she said.

An artist’s impression of Bodhi Apartments in Upper Mount Gravatt, which is yet to go ahead.

“Since 2016, Queensland’s foreign tax settings have cost the state 33,000 new homes. That is 33,000 rooves that could have been over the head of Queenslanders.

“We are in a race to build 1 million new homes by 2044 — a race that would be hard enough to win without a self-imposed handicap, which is effectively what our foreign tax regime amounts to.”

Mr Riga said difficulties in finding builders, combined with high construction costs and labour shortages, was stopping many projects from going ahead.

An artist’s impression of TriCare’s plans for relocatable homes and units in Rochedale.

He said collaboration between builders and developers in the past year had helped see some projects through to completion.

Purdy Developments founder Craig Purdy said more developers were adopting full integrated, in-house models for designing, building, and selling residential product.

“You’ve got control then, but there’s risk too,” Mr Purdy said.

An artist’s impression of apartments planned for the East Village project in Cannon Hill.

“Builders are all struggling, and they’ve all left the tier 2 space.”

Mr Purdy said a “box” in inner Brisbane now cost about $2m and three to four years to build.

“It’s eye-watering how long it takes to do prestige product now,” he said.

“Sites are so expensive now. Then you’ve got the construction costs and finding a builder. It seems people are prepared to pay for it though — that’s the irony.”

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