Almost nine out of 10 buyers are being locked out of Australia\u2019s new apartment market, with new data revealing house hunters now need at least $1.5 million to afford the majority of new units being built.<\/p>\n
Latest data from REA Group shows 56 per cent of new apartments listed on realestate.com.au nationally between February and March 2026 were priced at $1.5m or above, while just 12 per cent of buyers were willing or able to spend that much.<\/p>\n
The staggering mismatch effectively prices everyday Australians out of what has traditionally been the country\u2019s most affordable entry point to home ownership, throwing fuel on an already critical housing shortage.<\/p>\n
MORE: Jackie O\u2019s cunning $30m exit plan amid Kyle split<\/a><\/p>\n MORE: Australia\u2019s $85bn savings crisis exposed<\/a><\/p>\n Broke 39yo truckie paid off home in 10 years<\/a><\/p>\n \u2018$90 Bunnings gadget saved me from a $3m mistake\u2019<\/a><\/p>\n Driven by soaring development expenses, builders are increasingly delivering high-end, premium apartments just to make their projects financially viable.<\/p>\n This shift had driven up the share of $1.5 million-plusstock while suffocating the entry-level market.<\/p>\n Despite 25 per cent of buyers holding a budget of $600,000 or below, they were forced to battle it out for a mere 5 per cent of the market priced to match.<\/p>\n REA Group Senior Economist Anne Flaherty warned the disconnect between what was being built and what everyday buyers could afford would have severe consequences for the broader housing market.<\/p>\n \u201cWith Australia already facing a housing shortage, this affordability gap could further slow the delivery of new apartments,\u201d Ms Flaherty said.<\/p>\n \u201cThe gap has real consequences for supply. Even though apartment approvals are picking up, this mismatch between prices and budgets is likely to hold back pre-sales and delay new projects.\u201d<\/p>\n A state-by-state breakdown shows buyer budgets were misaligned with developer pricing in every major market.<\/p>\n The situation was particularly dire in Queensland, which was now the most expensive state for new apartment developments.<\/p>\n MORE: Exposed: Best and worst suburbs to own an EV<\/a><\/p>\n MORE NEWS:<\/p>\n Inside servo gold rush<\/a><\/p>\n Inflation crushes any hope of rates relief<\/a><\/p>\n Dual living searches surge 67 per cent: Trend<\/a><\/p>\n A massive 73 per cent of new listings in the Sunshine State were priced over $1.5m, catering to just 12 per cent of buyers.<\/p>\n Alarmingly, there were zero new apartment listings under $600,000 between February and March.<\/p>\n The squeeze was similarly tight in Victoria, where premium $1.5m-plus apartments made up 65 per cent of all new listings, despite only 10 per cent of local buyers having the capacity to pay that much.<\/p>\n MORE NEWS:<\/p>\n Shock: Population growth outpaces new housing supply<\/a><\/p>\n Aussies flee housing market for overseas bargains<\/a><\/p>\n