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 2020-21, employment declined by 4.1%, contributing 7.9% or 10,375 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 1,160,188 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 September 2021:
- the value of engineering construction work done rose by 36.6% to $1.6 billion (below the 10‑year average of $5.0 billion) (Chart 4).
- the increase in engineering construction work done was driven by a 66.0% increase in public sector work to $513 million and a 28.4% increase in private sector work to $1.1 billion.
- the main driver for the increase in public sector work done was roads, highways and subdivisions work (increasing by 55.9% and contributing 41.4 percentage points) and bridges, railways and harbours work (increasing by 382.2% and contributing 20.9 percentage points).
- the increase in private sector work done was mainly driven by recreation and other work (increasing by 90.1% and contributing 13.8 percentage points) and water storage and supply, sewerage and drainage work (increasing by 44.3% and contributing 4.0 percentage points).
Work commenced
Due to ABS data confidentiality protocols, the value of engineering construction work commenced for total and private are not reported for the September quarter 2021.
In the year to September 2021:
- public sector work commenced increased by 278.5% to $1.3 billion (above the 10‑year average of $379 million), mainly due to roads, highways and subdivisions work (increasing by 391.5% and contributing 259.1 percentage points) as well as bridges, railways and harbours work (increasing by 473.3% and contributing 23.4 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 2020-21:
- the value of non‑residential building construction work done increased 14.7% to $494 million (Chart 5).
- public sector work rose 37.5% to $268 million (above the 10-year average of $258 million).
- private sector work fell 4.3% to $225 million (below the 10‑year average of $456 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 November 2021:
- the value of total non-residential building approvals fell by 29.5% to $630 million (below the 10-year average of $731 million)
- the decrease in the value of approvals related to non-residential buildings was driven by a 38.9% decrease in public building approvals to $440 million, partly offset by a 9.4% increase in private sector approvals to $190 million (Chart 6). The decrease in public building approvals is largely due to significant building approvals in the prior year which appear related to Defence upgrades at RAAF Base Tindal.
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 2020-21:
- the value of residential construction work done in the NT rose 10.1% to $350 million (below the 10‑year average of $557 million).
- this was driven by an 15.5% increase in private sector activity to $246 million (below the 10-year average of $447 million) and a 1.0% decrease in public sector construction activity to $104 million (below the 10‑year average of $111 million).
- new house construction rose 30.0% to $186 million (below the 10-year average of $271 million), the largest component of residential construction (Chart 7).
- other residential construction (units, townhouses, etc) fell 19.6% to $37 million (below the 10-year average of $173 million).
- alterations and additions fell 1.3% to $127 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 November 2021:
- residential building approvals in the NT rose by 1.2% to 680 approvals (Chart 8).
- the increase in residential building approvals was driven by an increase in approvals for houses by 27.1% to 609 partly offset by a decrease in other residential (units, townhouses, etc) by 63.7% to 61 and alterations, additions and conversions by 60.0% to 10.
- the value of total residential building approvals in the NT rose by 13.4% to $390 million (below the 10‑year average of $516 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.