Apartment Recovery On Horizon
After years of underbuilding, Australia’s apartment sector is finally poised for a recovery.
Industry forecasts suggest multi-unit starts will begin lifting meaningfully from 2026, rising from around 70,000 commencements in 2025 towards roughly 100,000 by the end of the decade.
This shift reflects a combination of rapid population growth, record tight rental markets, and the simple reality that many households can no longer afford detached homes in middle-ring suburbs.
New home sales overall remain surprisingly resilient.
Quarterly sales are sitting around three-year highs despite a recent monthly dip, with demand supported by earlier rate cuts, low unemployment and ongoing migration.
The bigger constraints are land costs, planning delays and the capacity of builders and trades, not a lack of buyers.
Government programs such as the Housing Australia Future Fund are also targeting larger social and affordable projects, which tend to favour higher-density formats.
For investors, this points to a medium-term window where well-located new and nearly new apartments in major cities could see stronger rental and capital growth, provided build quality and strata costs are carefully assessed.
