The earliest apartment buildings were in the major cities of Sydney and Melbourne as the response to fast rising land values. Melbourne Mansions on Collins Street, Melbourne (now demolished), built in 1906 for mostly wealthy residents is believed by many to be the earliest. Today the oldest surviving self-contained apartment buildings are in the St Kilda area including the Fawkner Mansions (1910), Majestic Mansions (1912 as a boarding house) and the Canterbury (1914 - the oldest surviving buildings contained flats).[33] Kingsclere, built in 1912 is believed to be the earliest apartment building in Sydney and still survives.[34]
During the interwar years, apartment building continued in inner Melbourne (particularly in areas such as St Kilda and South Yarra), Sydney (particularly in areas such as Potts Point, Darlinghust and Kings Cross) and in Brisbane (in areas such as New Farm, Fortitude Valley and Spring Hill).
Post World War II, with the Australian Dream apartment buildings went out of vogue and flats were seen as accommodation only for the poor. Walk-up "flats" (without a lift) of two to three storeys however were common in the middle suburbs of cities for lower income groups.
The main exceptions were Sydney and the Gold Coast, Queensland where apartment development continued for more than half a century. In Sydney a limited geography and highly sought after waterfront views (Sydney Harbour and beaches such as Bondi) made apartment living socially acceptable. While on the Gold Coast views of the ocean, proximity to the beach and a large tourist population made apartments a popular choice. Since the 1960s, these cities maintained much higher population densities than the rest of Australia through the acceptance of apartment buildings.
In other cities, apartment building was almost solely restricted to public housing. Public housing in Australia was common in the larger cities, particularly in Melbourne (by the Housing Commission of Victoria) where a huge number of hi-rise housing commission flats were built between the 1950s and 1970s by successive governments as part of an urban renewal program. Areas affected included Fitzroy, Flemington, Collingwood, Carlton, Richmond and Prahran. Similar projects were run in Sydney's lower socio economic areas like Redfern.
In the 1980s, modern apartment buildings sprang up in riverside locations in Brisbane (along the Brisbane River) and Perth (along the Swan River).
In Melbourne, in the 1990s, a trend began for apartment buildings without the requirement of spectacular views. As a continuation of the gentrification of the inner city, a fashion became New York "loft" style apartments and a large stock of old warehouses and old abandoned office buildings in and around the CBD became the target of developers. The trend of adaptive reuse extended to conversion of old churches and schools. Similar warehouse conversions and gentrification began in Brisbane suburbs such as Teneriffe, Queensland and Fortitude Valley and in Sydney in areas such as Ultimo. As supply of buildings for conversion ran out, reproduction and post modern style apartments followed. The popularity of these apartments also stimulated a boom in the construction of new hi-rise apartment buildings in inner cities. This was particularly the case in Melbourne which was fuelled by official planning policies (Postcode 3000), making the CBD the fastest growing, population wise in the country. Apartment building in the Melbourne metropolitan area has also escalated with the advent of the Melbourne 2030 planning policy. Urban renewal areas like Docklands, Southbank, St Kilda Road and Port Melbourne are now predominantly apartments. There has also been a sharp increase in the amount of student apartment buildings in areas such as Carlton in Melbourne.
Despite their size, other smaller cities including Canberra, Darwin, Townsville, Cairns, Newcastle, Wollongong, Adelaide and Geelong have begun building apartments in the 2000s.
Today, residential buildings Eureka Tower and Q1 are the tallest in the country. In many cases, apartments in inner city areas of the major cities can cost much more than much larger houses in the outer suburbs.
Some Australian cities, such as Gold Coast, Queensland, are inhabited predominantly by apartment dwellers.