Demand for apartments and a shortage of supply continue to drive up prices in the first quarter of 2025, according to new analysis by JLL.

JLL’s Q1Residential Dynamics report backs up findings by the Australian Bureau of Statistics that the number of apartment developments is slowing. ABS data shows that nationally, 5,612 apartments were approved across March and April, compared with 8,625 approved across January and February.

The JLL report says the number of apartments expected to be completed in 2025 in Sydney will be 13% lower than in 2024. The lack of supply and strong demand mean Sydney apartment prices rose 2.6% year on year, and rents are up 7.7%. Melbourne apartment supply is extremely subdued, with just 2150 expected to be completed in 2025, which is half the annual average of the past ten years.
Median apartment prices in Melbourne dropped 0.3% in the past 12 months, although rents are up 8.9%. Already, a similar number of apartments have been completed in Brisbane in the first quarter of 2025, 838, as were completed in the whole of 2024. Brisbane median apartment prices are up 20.2% year on year, while rents are up 9.1%.