Construction is beginning to slowly rise again with apartments the dominate housing type to be delivered in 2025 and beyond.

Although PRD’s Australian Economic & Property Update says even though residential construction increased slightly in the second half of 2024, the market remains undersupplied. PRD Chief Economist, Dr Diaswati Mardiasmo, says apartment projects picked up during the second half of the year as they offers buyers more affordable options. “New dwelling costs in Brisbane and Perth continue to rise due to trade shortages and higher house demand,” she says. “Units remained the dominant planned ready-to-sell stock in 2024 and in 2025 and beyond. This is true in almost all capital cities (except for Hobart and Adelaide).”

As a result, Mardiasmo says the freestanding house market will remain under-supplied, which will push up prices. She says rising demand for units is driving prices up in those markets and there is evidence of unit price growth outpacing house price growth in some areas.
Sydney has 32,208 units in the pipeline, Brisbane, 25,184; Melbourne, 20,671; Canberra, 16,594; and Perth, 2590.

Hobart has 710 units in the pipeline while Adelaide has 180 and Darwin, 163.
While Sydney dominates the unit market development pipeline, it also has the highest number of proposed land lots – 8726.