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.
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Set on one of the city’s last absolute riverfront sites, The Riversdale by Mosaic combines irreplaceable waterfront ownership with one of Brisbane’s most significant residential opportunities.
At the northern tip of Point Piper, hidden from the street and positioned directly on Sydney Harbour, “Radford” combines cinematic views, rare waterfront access and a fascinating connection to one of Australia’s most storied estates.
The five-bedroom residence occupies land once belonging to Paradis Sur Mer, the celebrated three-block waterfront estate that made Australian property history in 1982. The original mansion became the country’s first home reported to have sold for more than $5 million—and may also have inspired one of its fastest and most profitable resales.
Property developer and yachtsman Bernard Lewis purchased the estate at auction for $5.25 million, only to sell it within hours to English betting magnate and thoroughbred breeder Robert Sangster. Lewis reportedly made a $500,000 profit in the process.
Sangster renamed the property Toison D’Or—French for “Golden Fleece” and the name of one of his racehorses—and established it as a Sydney base with his then-wife, Susan. The estate subsequently changed hands and identities again, becoming Paradis Sur Mer, or “Paradise on the Sea”, during Susan’s marriage to financier Sir Frank Renouf.
After another headline-making sale near the peak of Sydney’s late-1980s property boom, the original mansion was eventually demolished and the waterfront holding subdivided. “Radford” now stands on one of those prized parcels, carrying a thread of that extraordinary history into the present day.
Harbour views take centre stage
Designed by award-winning architect Victor Berk and constructed in the early 1990s, the three-level modernist residence has been planned around its exceptional position.
Panoramic views stretch from the Sydney Harbour Bridge across Shark Island and Rose Bay to Manly. A prized northerly aspect fills the home with natural light, while bedrooms and living spaces open to decks, balconies and terraces overlooking the water.
The main living areas flow to a broad alfresco entertaining terrace, sunny swimming pool and level harbourfront lawn. Beyond the garden, a private jetty completes the quintessential Sydney waterfront lifestyle.
Inside, generous proportions make the home equally suited to private family life and large-scale entertaining. The formal dining area can accommodate up to 14 guests, while a Gaggenau-appointed kitchen incorporates an island, walk-in pantry and casual breakfast area opening to the poolside deck.
A fireplace anchors the principal living space, complemented by high ceilings, travertine floors and expansive glazing that keeps the harbour present throughout the home.
A private sanctuary on every level
The main bedroom is accompanied by two walk-in wardrobes, a sitting area and an ensuite featuring a spa bath, separate shower and twin basins. Three further bedrooms each have an ensuite, while a gym with its own kitchenette, built-in storage and bathroom can serve as a fifth bedroom or private guest retreat.
Additional spaces include a fitted home office, an upper-level family area, sauna, two powder rooms and a substantial laundry. A lift connects all three levels, and the central staircase sits beneath an atrium-style glass roof fitted with an electric retractable blind.
Ducted and zoned air-conditioning, extensive storage and a security alarm add everyday practicality. Internal access leads to an oversized secure double garage, with additional driveway parking.
Set in an elite cul-de-sac on one of Australia’s most prestigious waterfront streets, “Radford” is close to Lady Martins Beach, Prince Edward Yacht Club, the Royal Motor Yacht Club, Rose Bay’s marinas and leading schools. Double Bay’s restaurants, boutiques and village amenities are only minutes away.
It is an exceptional harbourfront residence in its own right—but its connection to the record-breaking Paradis Sur Mer estate gives it a place within the wider story of Sydney real estate.
Property details
Address: Wolseley Road, Point Piper, NSW
Bedrooms: Five, including a flexible gym or guest suite
Bathrooms: Five, plus two powder rooms
Parking: Oversized double garage and additional driveway space
Key features: Northerly aspect, panoramic harbour views, private jetty, swimming pool, level waterfront lawn, lift, sauna, home office and Gaggenau kitchen
Architect: Victor Berk
Agents: Michael Pallier, Sydney Sotheby’s & Brad Pillinger, Pillinger
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