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 3.8% in 2023-24 to $2.0 billion (Chart 1).
- The construction sector in the NT accounts for 6.4% of the total gross state product (GSP) in 2023-24, up from 5.8% in the previous year. This represents the third lowest share of GSP across all jurisdictions (Chart 2).
- In comparison, the value of the national construction industry increased by 1.7 in 2023 24, accounting for 7.0 of national gross domestic product (GDP) in the same year.
Contribution to employment
- In 2023-24, employment in the construction industry rose by 6.9% to 10,730 persons. The industry comprised 7.8% of the total resident workforce (Chart 3) and was the fourth largest employing industry in the NT.
- Nationally, the construction industry made up 9.3% of total national employment, accounting for 1,292,409 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 September quarter 2024:
- the trend value of engineering construction work done rose by 2.2% to $595 million (above the 5 year September quarter average of $534 million) and rose 4.0% over the year, in chain volume terms (Chart 4).
- in original current prices, private sector engineering construction work done increased by 15.6% to $414 million over the year, and public sector work done increased by 14.5% to $228 million over the year.
- the main driver for the increase in private sector work done was bridges, railways and harbours.
- the increase in public sector work done was mainly driven by water storage and supply, sewerage and drainage.
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 declined by 31.2% to $316 million over the year to September quarter 2024 (below the 5-year September quarter average of $417 million).
- private sector work commenced declined by 26.7% to $233 million over the year (below the 5 year September quarter average of $267 million), mainly due to bridges, railways and harbours work.
- public sector work commenced declined by 41.2% to $83 million over the year (below the 5 year September quarter average of $168 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 declined 3.1% to $217 million over the year to September quarter 2024 (Chart 5).
- private sector work fell 25.2% to $55 million over the year (below the 5 year September quarter average of $67 million).
- public sector work rose 7.8% to $162 million over the year (above the 5-year September quarter average of $110 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 declined by 11.8% to $20.7 million over the year to November 2024.
- private sector approvals declined by 20.7% to $12.7 million and public sector approvals increased by 7.3% to $8.0 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 declined by 12.9% to $87 million over the year to September quarter 2024 (below the 5 year September quarter average of $100 million).
- this was driven by a 36.6% decline in private sector activity to $54 million (below the 5-year September quarter average of $76 million), partially offset by a 124.6% increase in public sector activity to $33 million (above the 5-year September quarter average of $24 million).
- new house construction declined by 29.1% to $46 million (below the 5-year September quarter average of $57 million), although remains the largest component of residential construction (Chart 7).
- other residential construction (units, townhouses, etc.) increased from $7 million to $9 million (at the 5-year September quarter average of $9 million).
- alterations and additions rose 14.4% to $33 million (below the 5-year September 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 November 2024:
- the trend number of residential building approvals in the NT increased from 39 to 41 in the month and increased 24.2% or 8 over the year. In original terms, over the year approvals for:
- houses increased 86.7% to 28.
- other residential (units, townhouses, etc.) declined from 26 to 18.
- alterations, additions and conversions declined from 3 to 0.
- the value of total residential building approvals in the NT declined by 23.9% over the year to $33.7 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 Logistics and Infrastructure (DPI) also publishes a construction snapshot on a quarterly basis. The DLI'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 DLI's industry section on their website.