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 the year to September 2023:
- the value of engineering construction work done fell by 1.4% to $2.1 billion (below the 10 year average of $4.6 billion) (Chart 4).
- the decrease in engineering construction work done was driven by a 3.2% decrease in public sector work to $691 million, partially offset by a 10.9% increase in private sector work to $1.6 billion.
- the decrease in public sector work done was mainly driven by roads, highways and subdivisions (detracting 12.2 percentage points).
- the main driver for the increase in private sector work done was heavy industry (contributing 21.2 percentage points).
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 the year to September 2023:
- engineering work commenced decreased by 72.8% to $1.7 billion (in line with the 10-year average of $1.7 billion).
- private sector work commenced decreased by 82.1% to $1.0 billion (below the 10 year average of $1.2 billion), mainly due to heavy industry work (decreasing by 89.8% and detracting 83.2 percentage points).
- public sector work commenced increased by 38.5% to $653 million (above the 10 year average of $459 million), mainly due to bridges, railways & harbours work (contributing 20.0 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 September 2023:
- the value of non residential building construction work done increased 24.1% to $720 million (Chart 5).
- public sector work rose 38.6% to $507 million (above the 10-year average of $322.1 million).
- private sector work fell 0.6% to $213 million (below the 10 year average of $358.2 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 January 2024:
- the value of total non-residential building approvals increased by 34.1% to $804.4 million (above the 10-year average of $675.1 million)
- the increase in the value of approvals related to non-residential buildings was driven by a 62.0% increase in private building approvals to $340.2 million, and a 19.0% increase in public sector approvals to $464.2 million.
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 September 2023:
- the value of residential construction work done in the NT increased by 5.1% to $369 million (below the 10 year average of $511.6 million).
- this was driven by a 9.5% increase in private sector activity to $295 million (below the 10-year average of $410.3 million), partially offset by a 9.5% decrease in public sector activity to $74 million (below the 10-year average of $101.4 million).
- new house construction increased 26.1% to $234 million (below the 10-year average of $262.6 million), the largest component of residential construction (Chart 7).
- other residential construction (units, townhouses, etc.) fell 18.0% to $27 million (below the 10-year average of $125.7 million).
- alterations and additions fell 18.6% to $108 million (below the 10-year average of $117.9 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 January 2024:
- residential building approvals in the NT decreased by 33.5% to 442 approvals.
- the decrease in residential building approvals was driven by a decrease in approvals for houses by 26.0% to 367, other residential by 29.6% to 69 and a decrease in alterations, additions and conversions by 91.5% to 6 approvals.
- the value of total residential building approvals in the NT decreased by 0.9% to $371.2 million (below the 10 year average of $433.8 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.