Australia may need more apartments, but new research suggests the homes reaching the market are increasingly disconnected from what buyers can afford.
The realestate.com.au New Homes Buyer Preferences FY26 report reveals a stark mismatch between the budgets of prospective new-apartment buyers and the prices of advertised stock.
Just 12% of surveyed apartment buyers and considerers had a budget of at least $1.5 million. Yet properties at this level represented 53% of the new-apartment listings analysed by realestate.com.au.
At the other end of the market, 36% of prospective buyers were working with budgets below $700,000, while only 11% of advertised new apartments fell into that price bracket.
The middle of the market was also undersupplied relative to demand. Buyers with budgets between $700,000 and $1.499 million accounted for 52% of respondents, compared with 35% of listings.
In other words, almost nine in 10 prospective buyers had less than $1.5 million to spend, but more than half of advertised new apartments were priced above that threshold.

The findings come from an independent survey of 2,016 new-home buyers and considerers conducted during February and March 2026. That included 1,003 people in the apartment market, with the survey findings supplemented by realestate.com.au listings data.
The results do not necessarily mean that half of all apartments under construction are premium properties. The listing figures reflect advertised new-apartment stock on realestate.com.au rather than the entire development pipeline. Even so, they provide a clear picture of the properties buyers can see and potentially purchase.
That visible market is heavily weighted towards its most expensive segment.
Budgets are rising, but supply is moving faster
Apartment buyers have substantially increased their budgets in recent years.
The average budget among respondents rose from $861,000 in late 2023 to $934,000 in late 2024 and $988,000 in early 2026—an increase of almost 15% in a little over two years.
The proportion of buyers with less than $700,000 to spend consequently fell from 54% in 2023 to 40% in 2024 and 36% in 2026. Meanwhile, the share targeting the middle price band rose from 38% to 52%.
But this increase in purchasing budgets has not been enough to bring the available stock into alignment with demand. The greatest concentration of advertised apartments remains above $1.5 million, a level accessible to only a small minority of those surveyed.
The mismatch helps explain why demand for new homes can appear healthy without translating smoothly into sales. Buyers may want a new apartment, but interest alone cannot overcome a large gap between their borrowing capacity and the asking price.
Price was the most commonly cited reason people stopped considering a new home. Almost one-third—32%—said buying or building new had become too expensive, up from 29% in the previous survey.

Buyers are spending longer in the market
The affordability gap is also visible in the time apartment buyers spend searching.
The average apartment-buying journey reached 22 months in March 2026, up from 16 months in late 2023. Buyers spent an average of six months monitoring the market and another five months searching for properties before progressing to inspections, offers and settlement.
That means half of the average journey passes before a buyer reaches the stage of seriously inspecting available projects.
Budget shock was identified as the leading reason buyers found it difficult to move forward. Faced with premium-heavy listings, prospective purchasers may need to save a larger deposit, reassess their expectations or wait for a suitable property to become available.
Many are also widening their search.
The average distance apartment buyers were prepared to move increased from 22km in 2024 to 28km in 2026. The proportion looking within five kilometres of their existing home fell from 35% to 29%, while the share considering properties 20km to 50km away rose from 21% to 26%.
This suggests buyers are responding to the pricing mismatch by looking beyond their preferred neighbourhoods rather than simply increasing their budgets.

A development feasibility dilemma
The imbalance does not necessarily reflect a failure to understand the market. New apartment projects face high costs for land, construction, finance, planning and compliance. Developers may favour premium projects because higher sale prices are needed to make construction financially viable.
But the survey illustrates the resulting policy and commercial challenge. Australia needs additional housing, particularly in established locations close to jobs, transport and services. If new apartments can only be delivered at prices beyond the reach of most buyers, increasing the number of projects will not automatically address affordability.
The market risks producing an abundance of choice for a relatively narrow group while leaving the largest pools of demand competing for limited lower-priced stock.
House-and-land listings were more closely aligned with buyer budgets, although that segment also displayed a modest shortage at the premium end. The apartment findings were far more pronounced, making the issue difficult to dismiss as a general preference gap.
There is clear interest in new homes. Eighty-eight per cent of apartment considerers were looking at both new and established properties, while the report found demand for new homes was climbing.
The problem is converting that interest into a purchase.
Until the price composition of new-apartment listings more closely reflects the budgets of prospective buyers, Australia’s apartment challenge will be about more than how many homes are built. It will also be about whether the homes being offered are the ones the market can afford.
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
رغم التوترات الإقليمية، يواصل سوق العقارات الفاخرة في الإمارات جذب المشاريع الجديدة، مع تصدر الواجهات البحرية المشهد. وتستعد دبي وأبوظبي ورأس الخيمة لإطلاق مجموعة من المشاريع السكنية الفاخرة، بينها مساكن تحمل علامات فندقية عالمية مثل Ritz-Carlton وJanu.
Long-term optimism remains strong in the United Arab Emirates, even as the war in neighboring Iran hinders home sales and demand for now.
While there have certainly been residential and commercial real estate projects across the U.A.E. that have been paused or delayed due to the turmoil experienced across the region, by and large, new developments continue to be launched.
That’s the case in the luxury residences sector in particular, where a string of starry, big-name projects are putting homes on the market before the close of the year. One trend is that the islands of Dubai, Abu Dhabi and the U.A.E. at large that are taking their turn in the spotlight, as waterfront living continues to be in demand and come at a premium.
For would-be buyers looking for resort-style homes along the shores, there’s an array of upcoming projects to get excited about. Right at the top of the list are hotel branded residences from the likes of Ritz-Carlton and Janu, the sister brand of powerhouse Aman, among five swanky projects selling this season.
The Ritz-Carlton Residences Al Maryah Island, Abu Dhabi
Luxury hotel branded residences are thriving, and the exciting Ritz-Carlton Residences Al Maryah Island development is a great example of why. Residents can expect hotel-style amenities and services from a locale within Abu Dhabi’s thriving waterfront district, with the creature comforts of home built into it.
This project was unveiled at Abu Dhabi Finance Week 2025 and promises to offer The Ritz-Carlton brand’s signature, timeless style and unwavering attention to detail. All units will feature floor-to-ceiling windows with enviable views, while residents will be able to take advantage of a resort-grade, infinity waterfront pool, immersive spa and wellness facilities, and a waterfront promenade with curated outdoor spaces as well as high-end retail and dining venues.
Sales launch in October.
Number of Units: 172
Price Range: Starting at $1.2 million
Developer/Architect: Killa Design and Tara Bernerd, with SAAS Properties.
Home Sizes: One- to four-bedroom residences ranging from 882 square feet to 4,962 square feet, and a five-bedroom, 13,713-square-foot penthouse.
Amenities: Wellness facilities including premium fitness center, massage room, meditation and recovery rooms, cold plunge and indoor pool. There’s also a rooftop pool, co-working lounge, executive golf lounge, and a games room and children play area.
Janu Al Marjan Island, Ras Al Khaimah
Just 50 minutes from Dubai International Airport, Janu Al Marjan Island aims to both feel a world apart from the city, while also offering supreme ease of access. The property has its own private stretch of beach and marina, ideal for superyacht mooring and serving as the scene of a beach club.
The Janu Residences will be positioned next to the Janu hotel, with residents able to take advantage of its many social and wellness spaces, in addition to resident’s-only amenities and services. Meanwhile, the adjacent Wynn Al Marjan Island, the U.A.E.’s first integrated resort, is in direct proximity as well.
Social life by the sea, with discretion and wellness on tap, not to mention a chance to get in early on burgeoning Ras Al Khaimah.
Sales launch in late October.
Number of Units: 73
Price Range: Starting at $2.3 million
Developer/Architect: Jointly developed by Marjan and Wynn Resorts, with architecture by SCDA Architects.
Home Sizes: One- to five-bedroom residences ranging from 2,117 square feet to 18,955 square feet, as well as five Marina Villas and a residential tower penthouse.
Amenities: An active lifestyle comes to the forefront with the Janu Spa and Wellness center and a padel court. Six dining venues and a signature beach club are key features for residents who want it all, right on-site.
Sei Saadiyat, Saadiyat Cultural District, Abu Dhabi
Located in the Saadiyat Cultural District, Sei Saadiyat combines its historic locale with a unique spin rooted in the Japanese concept of stillness and calm, or “Sei.” That foundational principle is what this community will be based on, with a mission to foster wellness and relaxation in all forms, including fitness and social connection.
A total of 778 homes will be spread across six Jacobs-designed buildings. Aldar is also introducing a first in their residential portfolio in the form of their two-bedroom Kanso Lofts at Sei Saadiyat, featuring double-height, open-plan living in loft style spaces including an elevated bedroom.
Phase one sales launched in September.
Number of Units: 778 total (265 involved in this phase one launch)
Price Range: Starting at $800,000
Developer/Architect: Aldar with architecture by Jacobs and interiors by Kettle Collective.
Home Sizes: Residences range from 753 square feet to 2,238 square feet, in a range of floor plans including one- and two-bedroom apartments, three-bedroom Kanso Residences and two-bedroom Kanso lofts.
Amenities: Amenities tie into the brand’s ethos of stillness and calm: expect a Zen garden with serenity pool and outdoor yoga decks, along with numerous indoor and outdoor fitness areas, and hot-and cold-pool experiences.
Amali Canal Residences
Amali Canal Residences is located on Dubai Canal in Al Wasl. The community is suspended above the canal, and brings the presence of water even closer to home with a number of features including private plunge pools in every residence, and a swim-through, indoor-outdoor pool with a signature waterfall facade that would make the posh resorts of the Swiss Alps blush.
There will be no shortage of on-site entertainment and diversions, whether in the form of a private cinema and resident bowling alley, cigar lounge and library, padel and sports courts, a panoramic fitness center. Then there’s The Retreat, a wellness center incorporating spa, sauna, steam, onsen baths, hydrotherapy, and yoga and pilates studios. When it’s time for a bit of work in between the diversions, residents can use an executive boardroom, private studies and co-working lounges.
Sales launch in October.
Number of Units: 211
Price Range: Two bedrooms starting at $3.9 million; three bedrooms starting at $5.4 million; four bedrooms starting at $7.4 million; penthouse pricing on request.
Developer/Architect: Amali Properties in collaboration with AHS Properties, with architecture by Killa Design and interior design by HBA Residential.
Home Sizes: Two- to four-bedroom apartments ranging from 2,880 square feet to 7,800 square feet, in addition to four- and five-bedroom penthouses ranging up to 21,000 square feet.
Amenities: 55,000 square feet of interconnected amenity spaces including myriad lounges, infinity pools with cabanas, children’s waterpark and child care center, padel court and a rooftop secret garden.
Rixos Residences Al Reem Island, Abu Dhabi
The Rixo Residences on Al Reem Island, Abu Dhabi, are designed to match its island environs with the thriving culture and finance dynamics of the city. Panoramic water and skyline views bring both faces to life, in this East & West Properties project.
Residences showcase expansive terraces offering boundless views from within a community centered around three dedicated amenity zones: the Oasis, the Haven and the Gathering. Together, wellness, fitness, social life and relaxation are all available in a number of formats.
Less than half a mile from the coast, and only 10 minutes from downtown Abu Dhabi, Rixos Residences offers generous layouts and amenity-rich public spaces that deliver equally as well for family-friendly living as well as investors.
Sales launched in August.
Number of Units: 386
Price Range: One-bedrooms starting at $570,000, with larger loft units starting at $1.8 million.
Developer/Architect: East & West Property Development under the Ennismore portfolio, with architect Aedas and interiors by HBA Residential.
Home Sizes: One- to two-bedroom apartments as well as three- and four-bedroom lofts, from 954 square feet to 2,941 square feet.
Amenities: Wellness treatment areas as well as Turkish hammam and steam rooms, landscaped walking tracks, padel court, rooftop clubhouse and plunge pool, private cinema, and services including concierge, valet and security.
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