There’s no shortage of negative headlines around the property market right now. 

From rising construction costs to funding constraints and shifting buyer sentiment, the narrative has largely been framed around uncertainty and slowdown. But beneath that noise, the reality on the ground tells a different story particularly in Queensland. 

Developers are still deploying capital.
Projects are still being funded.
And in the right locations, demand remains resilient. 

Looking Beyond the Headlines

Media cycles tend to amplify short-term volatility. But development decisions particularly in residential markets — are made with a longer-term lens. 

Queensland continues to benefit from structural tailwinds including: 

  • Sustained interstate migration  
  • Strong population growth  
  • Ongoing infrastructure investment  
  • Relative affordability compared to southern states  

These aren’t short-term trends. They are multi-year drivers of demand — and they continue to underpin developer confidence despite uncertainties in the market.

Population Growth Is Still Outpacing Supply

Queensland’s population growth remains one of the strongest in the country. 

The challenge isn’t demand – it’s supply. 

Despite increased construction activity over recent years, new housing delivery continues to lag what is required. Planning constraints, construction costs, infrastructure delivery and delays have all contributed to a persistent undersupply of housing. 

This imbalance is particularly evident in key growth corridors across Southeast Queensland. 

For developers, this creates a clear dynamic: 

Well-located, well-executed projects are still being absorbed by the market. 

Why Townhouses Are Leading the Way

While much of the conversation has focused on high-density apartments, we’re seeing stronger alignment in the townhouse segment — particularly across Brisbane.

Townhouses are increasingly hitting the “sweet spot” for buyers:

More affordable than detached housing

More liveable than smaller apartments

Better suited to owner-occupiers and downsizers

This has translated into more consistent demand and, importantly, more confidence from lenders and capital partners.

As a result, capital is continuing to flow into these types of projects — not broadly, but selectively.

Where We’re Seeing Activity

North of Brisbane 

Northern growth corridors continue to present strong opportunities, driven by population inflows and infrastructure expansion. 

These areas are benefiting from: 

  • Established and emerging communities  
  • Connectivity improvements  
  • Investments in infrastructure  
  • Continued demand from both owner-occupiers and investors  

For developers, this provides a relatively stable environment to deploy capital into well-structured townhouse projects. 

South of Brisbane: Ripley & Ipswich 

The southern corridor — particularly Ripley and Ipswich — continues to evolve as a key growth region. 

These areas are seeing: 

  • Significant population expansion  
  • Ongoing infrastructure investment  
  • Increasing amenity and liveability  

Importantly, they also offer relative affordability — a critical factor in the current environment. 

For developers, this combination continues to support project feasibility and buyer demand. 

Capital Is Still Flowing — But With Discipline

One of the biggest misconceptions in today’s market is the perception that funding opportunities have disappeared. 

One of the key themes in the current market is that the availability of funding has become increasingly constrained. 

The reality is more nuanced. 

Capital is still available — but it is being deployed more selectively and from alternative capital sources. 

At Ark Capital, the focus remains on: 

  • Strong sponsors with proven track records  
  • Markets with clear demand-supply imbalances  
  • Projects with realistic pricing and delivery assumptions  
  • Structures that appropriately manage risk  

This disciplined approach doesn’t slow deployment – it improves the quality of it. 

The Bottom Line

Despite the noise, the fundamentals in Queensland remain intact. 

Developers aren’t ignoring the challenges — they’re adapting to them. 

And in doing so, they’re continuing to deploy capital into projects that: 

  • Align with current buyer demand  
  • Sit within high-growth corridors  
  • Are supported by strong underlying fundamentals  

The result isn’t a market that has stopped – it’s a market that has become more considered. 

And for those taking a disciplined approach, the opportunity is still very much there. 

 

Want more insights like this? Follow Justin Reidy on LinkedIn. 

Article written by Justin Reidy – State Director – Queensland

The commentary in this article in no way constitutes a solicitation of business or product adviceIt is expressed solely as the opinion of the author, and as general information for the reader. It is not information to be relied upon in making investment decisions.

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