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 remained largely flat in 2020-21, increasing by 0.4% to $1.5 billion (Chart 1).
- The construction sector in the NT accounts for 6.0% of the total gross state product (GSP) in 2020-21, up from 5.5% 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 1.5% in 2020‑21, accounting for 7.0% of national gross domestic product (GDP) in the same year.
Contribution to employment
- In 2021-22, employment in the construction industry declined by 9.9% to 9,300 persons. The industry comprised 7.1% of the total resident workforce (Chart 3) and was the fourth largest employing industry in the NT.
- Nationally, the construction industry made up 8.7% of total national employment, accounting for 1,152,700 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 2021:
- the value of engineering construction work done rose by 33.9% to $1.7 billion (below the 10‑year average of $5.0 billion) (Chart 4).
- the increase in engineering construction work done was driven by a 82.7% increase in public sector work to $595 million and a 21.7% increase in private sector work to $1.2 billion.
- the main driver for the increase in public sector work done was roads, highways and subdivisions work (increasing by 94.8% and contributing 65.3 percentage points) and bridges, railways and harbours work (increasing by 253.5% and contributing 18.4 percentage points).
- the increase in private sector work done was mainly driven by recreation and other work (increasing by 54.6% and contributing 9.2 percentage points) and heavy industry (increasing by 16.8% and contributing 7.7 percentage points).
Work commenced
Due to ABS data confidentially protocols the value of private and total engineering construction work commenced in the Territory was not reported for the September quarter 2021. This likely reflects commencement of the construction activity for the Barossa project. As a result, it is not possible to calculate a range of metrics for these series.
In 2021:
- public sector work commenced decreased by 49.2% to $524 million (above the 10‑year average of $379 million), mainly due to roads, highways and subdivisions work (decreasing by 60.3% and detracting 52.4 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 2021:
- the value of non‑residential building construction work done decreased 3.3% to $478 million (Chart 5).
- public sector work rose 29.1% to $295 million (above the 10-year average of $262 million).
- private sector work fell 31.2 % to $182 million (below the 10‑year average of $450 million).
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 April 2022:
- the value of total non-residential building approvals decreased by 9.0% to $873.6 million (above the 10-year average of $729.8 million)
- the decrease in the value of approvals related to non-residential buildings was driven by a 7.7% decrease in public building approvals to $691.5 million, and a 13.7% decrease in private sector approvals to $182.1 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 2021:
- the value of residential construction work done in the NT rose 2.8% to $345 million (below the 10‑year average of $538 million).
- this was driven by a 12.1% increase in private sector activity to $259 million (below the 10-year average of $438 million), partly offset by a 17.7% decrease in public sector construction activity to $86 million (below the 10‑year average of $100 million).
- new house construction rose 21.4% to $197 million (below the 10-year average of $262 million), the largest component of residential construction (Chart 7).
- other residential construction (units, townhouses, etc.) fell 10.6 to $34 million (below the 10-year average of $164 million).
- alterations and additions fell 15.7% to $114 million (above the 10-year average of $108 million).
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 April 2022:
- residential building approvals in the NT decreased by 37.1% to 536 approvals (Chart 8).
- the decrease in residential building approvals was driven by decreases in approvals for other residential (units, townhouses, etc) by 35.1% to 85 and houses by 45.4% to 381, partly offset by increases in approvals for alterations, additions and conversions by 204.3% to 70.
- the value of total residential building approvals in the NT decreased by 28.1% to $304.1 million (below the 10‑year average of $508.0 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.