The shift toward high-end construction reflects a confluence of pressures hitting the Brisbane development market. Building costs have risen sharply over the past two years, driven by material price increases linked to global supply disruptions and the oil price shock from the Iran conflict. Competition for skilled labour remains intense, with tradesperson wages at record levels.

Developers say the numbers simply do not work for affordable or mid-range apartments. The cost per square metre to build has risen to a point where only luxury price points generate acceptable returns. This is pushing the new supply pipeline away from the segment of the market where demand is strongest.

The trend is worsening Brisbane's housing affordability crisis at a time when population growth from interstate migration continues to outpace supply. Owner-occupiers are increasingly competing with investors for the limited stock of new apartments.