Northern Territory construction is still experiencing a period of strong growth, following the continued investment in Defence and infrastructure upgrades.

Major Defence projects include the new Mess Facilities, accommodation blocks and upgrades to Robertson Barracks, Larrakeyah defence precinct upgrades, Air 7000 (Phase 1B) and P0009 runway upgrade at RAAF base Darwin.

A new $100m 236-room Hotel at the Darwin convention centre has been announced, which is set to commence in Q2 2025 and will provide new upscaled accommodation options for corporate and tourist visitors.

Works have commenced on the first multi-storey apartment building in the Darwin CBD for the last seven years. This project will be 10-storeys and consist of 24 three-bedroom apartments.

The ongoing rise in construction costs continues to remain a concern for both the public and private sectors in the Northern Territory, with no noticeable improvement since the last quarter.

Whilst material prices have stabilised, we are experiencing a labour shortage across all trades, which is continuing to drive up prices.

Meanwhile, the private sector is experiencing a downturn in investment. Developers are finding it increasingly difficult to justify projects financially as escalating construction expenses coincide with stagnating sale prices.

Escalation in Darwin across 2024 is forecast at 6%.

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Detailed data for each Australian state can be found in the 2024 Handbook & Cost Guide.