What our analysis shows
Our calculations, data as of 23 October 2026
- A standard 60 m² two-bedroom flat comes to $198,500 turnkey in Brisbane ($174,500–$222,500) and $169,300 in regional cities such as Townsville or Cairns.
- The Gold Coast gives the fastest payback of any area in our national data: 8.4 years on a 60 m² flat, on a median two-bedroom rent of $750 a week from Residential Tenancies Authority bonds.
- One-bedroom flats are a poor bet outside the inner suburbs. In Townsville a one-bedroom flat rents for 62% of a two-bedroom house; in Logan, 63%. That hits Moreton Bay hardest, where the 45 m² cap on standard lots leaves no room for a second bedroom.
- Infrastructure charges are the least predictable line. A council charge comes with a development approval; Brisbane's adopted charge for a one- or two-bedroom dwelling is $13,424 from 1 July 2026, before credit for the existing house. A Logan owner posted a 2024 notice for $22,000 net.
Fastest payback in Queensland, 60 m² two-bedroom flat
- Gold Coast8.4 years
- Cairns9.0 years
- Brisbane9.7 years
- Sunshine Coast9.7 years
- Townsville10.4 years
- Toowoomba11.3 years
- Moreton Bay12.1 years
- Logan12.7 years
- Ipswich12.7 years
- Redland13.0 years
After agent fees, insurance, maintenance and tax at 30%, no loan. Rents: RTA median for new bonds by council area, September quarter 2026 (1-bed flat, 2-bed house).
What you pay for
| Line, 60 m² in Brisbane | Cost |
|---|---|
| Construction | $162,000 |
| Site preparation (flat, easy access) | $12,000 |
| Sewer, water, power and stormwater connections | $10,000 |
| Design, engineering and NatHERS energy rating | $8,000 |
| Approval: Building approval (accepted development) | $6,500 |
| Total | $198,500 |
The approval line covers a private certifier's building approval, council plumbing approval and the energy report. Many Queensland blocks are sloping or need a suspended slab or stumps; on a sloping Brisbane lot our model adds $13,000 to $33,000.
| Size | Budget | Standard | Premium | Standard, regional |
|---|---|---|---|---|
| Studio, 35 m² | $120,600 | $139,500 | $170,400 | $121,000 |
| 1 bed, 45 m² | $138,700 | $161,600 | $199,200 | $139,100 |
| 2 bed, 60 m² | $168,800 | $198,500 | $247,100 | $169,300 |
| 2 bed, 70 m² | $190,900 | $225,500 | $282,200 | $191,500 |
| 2–3 bed, 80 m² | $212,900 | $252,500 | $317,300 | $213,600 |
Council size limits and your return
We priced the largest flat each council allows on a standard suburban lot and matched it to local rent. Below 55 m² we used one-bedroom rent, because a second bedroom does not fit in a liveable plan.
| Council | Largest flat | Cost | Rent / week | Payback |
|---|---|---|---|---|
| Brisbane | 80 m², 2 bed | $252,500 | $650 | 12.3 yrs |
| Gold Coast | 80 m², 2 bed | $252,500 | $750 | 10.6 yrs |
| Logan (lot under 1,000 m²) | 70 m², 2 bed | $225,500 | $500 | 14.4 yrs |
| Sunshine Coast | 60 m², 2 bed | $198,500 | $650 | 9.7 yrs |
| Ipswich (lot 450–600 m²) | 60 m², 2 bed | $198,500 | $500 | 12.7 yrs |
| Moreton Bay (lot 450–800 m²) | 45 m², 1 bed | $161,600 | $340 | 15.6 yrs |
Building the largest flat a council permits rarely gives the best return. In Brisbane the 80 m² flat takes 12.3 years to pay back against 9.7 for 60 m², because tenants pay for bedrooms, not floor area. Moreton Bay owners get the weakest result: the small flat is cheaper, but a one-bedroom flat there rents for $340, so the payback is the longest in the region. On lots over 800 m² Moreton Bay allows 55 m², which lifts the case.
Rents by council
| Area | 1-bed rent | 2-bed rent | 60 m² build | Net yield |
|---|---|---|---|---|
| Gold Coast | $615 | $750 | $198,500 | 16.2% |
| Cairns | $420 | $600 | $169,300 | 15.0% |
| Brisbane | $590 | $650 | $198,500 | 13.8% |
| Sunshine Coast | $500 | $650 | $198,500 | 13.8% |
| Townsville | $320 | $520 | $169,300 | 12.8% |
| Toowoomba | $350 | $480 | $169,300 | 11.7% |
| Moreton Bay | $340 | $525 | $198,500 | 10.9% |
| Logan | $315 | $500 | $198,500 | 10.3% |
| Ipswich | $370 | $500 | $198,500 | 10.3% |
| Redland | $400 | $490 | $198,500 | 10.1% |
Rent data: Residential Tenancies Authority median rents, new bonds in the September quarter 2026. One-bedroom figures are for flats and units, two-bedroom figures for houses; the RTA does not separate granny flats.
Infrastructure charges
Builder guides quote anything from nothing to over $20,000 for the same council. Two separate charges are behind the confusion. A council can issue an infrastructure charges notice with a development approval, so a flat that is accepted development under the planning scheme does not get one. Brisbane's Charges Resolution No. 15, from 1 July 2026, sets $13,424 for a one- or two-bedroom dwelling and $18,793 for three or more, before credit for demand from the existing house. Water and sewer charges are levied separately by Urban Utilities in Brisbane and Ipswich, Unitywater on the Sunshine Coast and in Moreton Bay, and Logan Water in Logan.
Owners' own figures show the range. A Logan owner posted a 2024 notice that charged a two-bedroom flat as extra demand, credited the existing three-bedroom house, and left $22,000 to pay. Ask council and the water authority for written estimates before you sign a building contract.
Rules changing in 2026
The Queensland Housing Code began on 1 September 2026. Reported versions of its acceptable solutions set 50 m² of floor area for a secondary dwelling, or 60 m² on lots of 1,000 m² or more. It applies in a council area only once that council adopts it, over a transition to 1 September 2029, so Brisbane's 80 m² limit still applies for now. Brisbane has also proposed Major Amendment Package L, which would limit secondary dwellings to one storey (two if attached to a two-storey house) and tie their size to the site area. The council was still reviewing submissions in October 2026, with no adoption date set. If you plan a two-storey or 80 m² flat in Brisbane, lodge under the current rules or wait for the final text.
Overlays matter as much as size. In Brisbane, the traditional building character overlay and flood or overland flow mapping are the usual reasons a compliant-looking flat needs a development application.
Queensland specifics
QBCC home warranty insurance applies to residential building work over $3,300; builders include it in the price, typically $1,500–3,500 for a granny flat. Owner-builders need a QBCC permit for work over $11,000. If you want the tenant to pay for water, Queensland tenancy law allows it only when the flat is individually metered and meets water-efficiency standards, so decide on a separate meter before the plumbing goes in.
This week's worked example
Week of 19 October 2026. A new example, rule and owner report every Monday.
A 65 m² two-bedroom flat with a standard finish on a flat block, services 12 m from the house, in Cairns: our model puts it at $180,400 turnkey ($159,000–$202,000), or $2,780 per m². At the area's median 2-bedroom bond rent of $600 a week it would return 14.0% net and pay back in 9.6 years after tax.
Rule check: Since 26 September 2022 a Queensland secondary dwelling can be rented to anyone, not only to relatives of the main household.
From an owner (QLD, 2025): Another Brisbane-area owner found prefab units of any quality priced close to a small new three-bedroom house, and gave up.