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 grew by 6.6% in 2022-23 to $1.8 billion (Chart 1).
- The construction sector in the NT accounts for 5.7% of the total gross state product (GSP) in 2022-23, up from 5.2% in the previous year. This represents the second lowest share of GSP across all jurisdictions (Chart 2).
- In comparison, the value of the national construction industry increased by 3.8% in 2022-23, accounting for 6.7% of national gross domestic product (GDP) in the same year.
Contribution to employment
- In 2022-23, employment in the construction industry rose by 12% to 10,571 persons. The industry comprised 7.5% 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 1,166,192 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 June quarter 2024:
- the trend value of engineering construction work done rose by 0.7% to $528 million (above the 5 year June quarter average of $461 million), and rose 1.1% over the year in chain volume terms (Chart 4).
- in original current prices, private sector engineering construction work done increased by 7.5% to $427 million over the year, and public sector work done increased by 13.1% to $214 million over the year.
- the increase in public sector work done was mainly driven by bridges, railways and harbours.
- the main driver for the increase in private sector work done was heavy industry.
Work commenced
Due to ABS data confidentiality 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 original current price terms:
- engineering work commenced increased by 74.4% to $494 million over the year to June quarter 2024 (above the 5-year June quarter average of $341 million).
- private sector work commenced increased by 47.5% to $340 million over the year (above the 5 year June quarter average of $246 million), mainly due to bridges, railways and harbours work.
- public sector work commenced increased by 192.2% to $154 million over the year (above the 5 year June quarter average of $94 million), mainly due to roads, highways & subdivisions work.
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 original chain volume terms:
- the value of non residential building construction work done increased 18.4% to $231 million over the year to June quarter 2024 (Chart 5).
- public sector work rose 28.4% to $181 million over the year (above the 5-year June quarter average of $111 million).
- private sector work fell 8.0% to $50 million over the year (below the 5 year June quarter average of $52 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 original current price terms:
- the value of total non-residential building approvals increased by 108.5% to $101.4 million over the year to September 2024.
- private sector approvals increased by 3.2% to $31.1 million and public sector approvals increased by 279.7% to $70.4 million over the year.
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 original chain volume terms:
- the value of residential construction work done in the NT increased by 3.8% to $103 million over the year to June quarter 2024 (above the 5 year average of $95 million).
- this was driven by a 100.5% increase in public sector activity to $46 million (above the 5-year June quarter average of $29.2 million), partially offset by a 25.0% decrease in private sector activity to $57 million (below the 5-year June quarter average of $66.1 million).
- new house construction decreased 17.3% to $52 million (at the 5-year June quarter average of $52 million), the largest component of residential construction (Chart 7).
- other residential construction (units, townhouses, etc.) decreased 8.8% to $7 million (below the 5-year June quarter average of $9 million).
- alterations and additions rose 54.5% to $44 million (above the 5-year June quarter average of $34 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 September 2024:
- the trend number of residential building approvals in the NT was unchanged at 39 in the month and over the year. In original terms, approvals for:
- houses increased 7.9% to 41 over the year.
- other residential (units, townhouses, etc.) increased from zero to 7.
- alterations, additions and conversions increased from zero to 1.
- the value of total residential building approvals in the NT declined by 11.2% over the year to $32.0 million, in original current price terms.
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.