Brief
Queensland housing minister warns falling Brisbane prices could curb new builds
Sam O’Connor linked recent price declines to investor uncertainty and higher costs for high‑rise projects.
By Felo News Desk · Published
Queensland Housing Minister Sam O’Connor warned on Monday that a recent dip in Brisbane property prices could restrict the number of new homes built in the city, particularly apartments, according to the Sydney Morning Herald. Speaking at a construction site in Newmarket, O’Connor said market uncertainty and federal tax changes were adding pressure to an already challenging building environment.
What happened
At the Newmarket community development site on 12 October 2026, O’Connor highlighted that Brisbane house prices had fallen 1.5% in September and 5.4% since the May peak, citing the latest property data. He warned that the decline could become a "particular factor" for apartment construction, noting that high‑rise projects were already "very expensive" and that skilled‑labour shortages were compounding the problem.
What the reports add
The article notes that the Queensland government remains committed to delivering one million new homes by 2044, despite forecasting a building slump. O’Connor echoed Premier David Crisafulli’s criticism of federal budget tax changes, suggesting they would affect future building rates. The piece also includes commentary from Dr Andrea Blake, a senior lecturer in property economics at QUT, who attributed the price downturn to higher interest rates and a shortage of skilled tradespeople, while acknowledging potential long‑term benefits from the tax reforms for first‑home buyers.
What was said
"Nothing can be harder than what we inherited with the way construction sites were run across Queensland and the way that the CFMEU was behaving … but the Canberra chaos has certainly added to it," O’Connor told reporters, as reported by the SMH.
When asked if lower prices might spook investors, he said they were "a particular factor" for apartment construction and described the environment as "very, very challenging".
Premier David Crisafulli added, "There’s no doubt that some of the changes out of Canberra have changed that trajectory, and I do believe that, into the future quarters, we are going to see that come off the boiler a little bit."
Dr Blake said, "I think that the changes to the tax structure will have long‑term benefits of levelling out the housing market to allow greater accessibility by young people and first home buyers," but warned that investors were losing incentives and that the supply of skilled labour remained insufficient.
How it came about
The warning follows a series of recent reports on Australian housing trends, including a national decline of 5% in home values since the March peak and a 1.5% fall in Brisbane prices in September, as recorded in Felo’s earlier coverage of the Australian property market. The state’s ambitious million‑home target, first announced in 2020, has faced ongoing challenges from rising construction costs, labour shortages and shifting federal policy.
Key facts
- Brisbane house prices fell 1.5% in September and 5.4% since the May peak (smh.com.au)
- Queensland aims to deliver one million new homes by 2044 (smh.com.au)
- Minister Sam O’Connor said falling prices could curb apartment construction (smh.com.au)
- Premier David Crisafulli blamed federal tax changes for potential building slowdown (smh.com.au)
- QUT lecturer Andrea Blake linked the price dip to interest rates and skilled‑labour shortages (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Brisabne property prices: Dip could restrict supply in Brisbane, says Queensland Housing Minister Sam O’Connor”
