For this industry, analysis is provided on the Northern Territory’s (NT) construction activity for residential and non-residential buildings, engineering construction activity, building approvals, as well as construction work yet to be done, detailing both private and public sector estimates.
Economic contribution | Contribution to employment | Engineering construction | Non‑residential construction | Residential construction | Explanatory notes
Over the past seven years, the NT construction industry has been heavily influenced by works for the Ichthys liquefied natural gas (LNG) project, as well as other resource-related developments. During this period of strong economic expansion, the NT also realised a surge in residential construction activity, which peaked at historically high levels in 2013-14. Following the completion of the Ichthys LNG project, construction activity across all components has declined significantly.
Economic contribution
- The NT’s construction industry decreased by 15.7% in 2019-20 to $1.5 billion, detracting 1.1 percentage points to the total 5.3% economic growth (Chart 1).
- The construction sector in the NT accounts for 5.9% of the total gross state product (GSP) in 2019-20, down from 7.0% in the previous year. This represents second lowest share of GSP across all jurisdictions (Chart 2).
- In comparison, the value of the national construction industry decreased by 4.5% in 2019‑20, accounting for 7.2% of national gross domestic product (GDP) in the same year.
Contribution to employment
- In 2020-21, employment declined by 4.3%, contributing 7.9% or 10,352 persons to the total resident workforce in 2020-21, which is the fourth largest employing industry in the NT (Chart 3).
- Nationally, the construction industry made up 9.0% of total national employment, accounting for 1,158,570 persons over the same period.
Engineering construction
Engineering construction includes mining, oil and gas, and other heavy industry and utility‑related developments, as well as infrastructure including roads, highways, railways and bridges.
Work done
In the year to March 2021:
- the value of engineering construction work done rose 17.6% to $1.3 billion (below the 10‑year average of $4.9 billion) (Chart 4).
- the increase in engineering construction work done was driven by a 24.0% increase in public sector work to $357 million and a 15.8% increase in private sector activity to $1.0 billion.
- the main driver for the increase in public sector work done was roads, highways and subdivisions work (increasing 83.2% and contributing 8.9 percentage points) and electricity generation, transmission and pipelines work (increasing by 169.4% and contributing 8.0 percentage points).
- the increase in private sector work done was mainly driven by recreation and other work (increasing by 113.0% and contributing 11.7 percentage points) and electricity generation, transmissions and pipelines work (increasing 103.5% and contributing 7.6 percentage points).
Work commenced
In the year to March 2021:
- engineering work commenced increased 163.6% to $2.0 billion (above the 10-year average of $1.3 billion).
- public sector work commenced increased 250.5% to $1.1 billion (above the 10‑year average of $351 million), mainly due to an in roads, highways and subdivisions work (increasing 221.9% and contributing 192.4 percentage points) as well as bridges, railways and harbours work (increasing 2,382.9% and contributing 34.2 percentage points).
- private sector work commenced increased 99.9% to $864 million (below the 10‑year average of $1.0 billion), mainly due to electricity generation, transmission and pipelines work (increasing 276.5% and contributing 38.9 percentage points) and heavy industry work (increasing 85.1% and contributing 27.3 percentage points).
For the latest data and analysis on engineering construction activity in the NT, see the Department of Treasury and Finance’s Engineering construction activity economic brief.
Non‑residential construction
Non‑residential building includes hotels and other non‑residential accommodation facilities, shopping centres, factories, offices, warehouses, schools, medical centres, correctional facilities and other similar buildings.
Work done
In the year to March 2021:
- the value of non‑residential building construction work done increased 9.5% to $480 million (Chart 5).
- public sector work rose 14.3% to $244 million (below the 10-year average of $255 million).
- private sector work rose 5.0 % to $236 million (below the 10‑year average of $456 million), driven by commercial building work.
For the latest data and analysis on non-residential construction activity in the NT, see the Department of Treasury and Finance’s Building activity economic brief.
Building approvals
Building approvals can be used as a leading indicator to determine the trend of construction-related activity, which measures the number and value of building work approved for non-residential buildings.
In the year to May 2021:
- the value of total non-residential building approvals rose 197.8% to $960 million (above the 10-year average of $747 million)
- the increase in the value of approvals related to non-residential buildings was driven by a 421.0% increase in public building approvals to $747 million and a 19.2% increase in private sector approvals to $214 million (Chart 6).
For the latest data and analysis on non-residential building approvals in the NT, see the Department of Treasury and Finance’s Building approvals economic brief.
Residential construction
Work done
In the year to March 2021:
- the value of residential construction work done in the NT rose 9.3% to $480 million (below the 10‑year average of $570 million).
- this was driven by an 11.6% increase in private sector activity to $240 million (below the 10-year average of $451 million) and a 4.4% increase in public sector construction activity to $105 million (below the 10‑year average of $119 million).
- new house construction rose 14.7% to $174 million (below the 10-year average of $275 million), the largest component of residential construction (Chart 7).
- other residential construction (this includes units and townhouses) fell 20.1% to $33 million (below the 10-year average of $178 million).
- alterations and additions rose 12.5% to $137 million, growth was likely supported by the NT Government’s public housing stimulus programs, home improvement scheme under the Jobs Rescue and Recovery plan and home renovation grants of up to $10 000 as part of the First Home Owner Discount incentive.
For the latest data and analysis on residential construction activity in the NT, see the Department of Treasury and Finance’s Building activity economic brief.
Building approvals
Building approvals can be used as a leading indicator to determine the trend of construction-related activity, which measures the number and value of building work approved for residential buildings.
In the year to May 2021:
- residential building approvals in the NT rose 64.8% to 870 approvals (Chart 8).
- the increase in residential building approvals were driven by an increase in approvals for houses by 75.6% to 704, other residential (units, townhouses, etc.) by 26.8% to 142 and alterations, additions and conversions by 60.0% to 24.
- the value of total residential building approvals in the NT rose 28.9% to $424 million (below the 10‑year average of $532 million).
For the latest data and analysis on residential building approvals in the NT, see the Department of Treasury and Finance’s Building approvals economic brief.
Explanatory notes
- This analysis is based on the most recent Australian Bureau of Statistics (ABS) quarterly data on engineering construction and building activity, and the monthly data from the building approvals surveys.
- The ABS’s quarterly data on engineering construction and building activity is measured on a value of work done basis, compared to the GSP data. GSP data reflects the total gross value added to GSP by the industry, which includes wages paid to employees and value of construction work done. The engineering construction survey data excludes the cost of land, and repair and maintenance activities as well as the value of any transfers of existing assets.
- The ABS building activity survey is compiled using building approval details and returns collected from builders and other individuals and organisations engaged in building activity. The estimates represent all approved public and private sector residential building jobs valued at $10,000 or more and non-residential building jobs valued at $50,000 or more. The statistics relate to building activity so construction activity not defined as building such as the construction of roads, bridges, railways and earthworks are found in other ABS publications.
- The ABS’s building approvals survey is also used as a leading indicator to determine the trend of construction-related activity, which measures the number and value of building work approved for residential and non-residential buildings. This survey measures the number and value of building work approved for residential and non-residential buildings, including all approved residential buildings valued at $10,000 or more and all approved non-residential buildings valued at $50,000 or more.
- The Department of Infrastructure, Planning and Logistics (DIPL) also publishes a construction snapshot on a quarterly basis. The DIPL’s construction snapshot provides an overview of construction activity for major works over $500,000, reflecting both current and potential future construction-related work for NT regions. To view the latest construction snapshot, refer to DIPL’s industry section on their website.