Construction work done: home building rises 1.7% as engineering falls 6%

The value of construction work done in Australia fell 2.1% in the June quarter 2026, to $82.5 billion in seasonally adjusted terms, according to preliminary figures released by the Australian Bureau of Statistics on 26 August. But the fall was driven by engineering construction. Building work, and residential building in particular, kept growing.

What the ABS reported

• Total construction work done fell 2.1% to $82.5 billion.
• Building work done rose 1.3% to $45.8 billion, and is 10.0% higher than a year earlier.
• Residential building rose 1.7% to $27.9 billion, up 9.1% on a year earlier.
• Non-residential building rose 0.5% to $18.0 billion, up 11.5% on a year earlier.
• Engineering construction fell 6.0% to $36.7 billion, down 5.1% on a year earlier.
• The trend estimate for total construction work done rose 0.7% to $82.0 billion.

By state, total construction work done rose in NSW, Victoria, Queensland, South Australia and the Northern Territory in the quarter.

Why work done matters

Building approvals tell you what is in the pipeline. Construction work done tells you how much building is actually being carried out, measured by value. For builders and trades, it is the closest official measure to how busy the industry is right now.

The June quarter figures fit with other recent data. The National Housing Supply and Affordability Council reported last week that a record 244,000 dwellings were under construction in the March quarter 2026. A large pipeline of homes under construction translates into rising residential work done, which is what the ABS figures show.

Reading the residential number carefully

Work done is measured in dollars, and construction costs have been rising. The Council said house construction costs rose 2% in the June quarter and are 51% above pre-COVID levels. So part of the growth in the value of residential work reflects higher prices, not only more homes being built. The ABS also publishes volume measures that adjust for prices; the headline value figures should be read with cost growth in mind.

Even so, a 9.1% annual rise in residential work done is a sign of a busy industry, consistent with the strong growth in approvals over the past year and the record number of dwellings under construction.

What it means for builders

Busy now, softer ahead

The industry is working through a large pipeline, which is why trades remain scarce and prices keep rising. At the same time, the forward indicators are softer: the Reserve Bank says new housing loans are declining noticeably, house prices are falling in some capitals, the SMSF borrowing ban has taken effect, and the Council expects some construction to be deferred. Builders should expect current workloads to stay heavy while new enquiries slow.

Engineering slowdown could free some trades

The fall in engineering construction, which includes roads, rail, energy and utilities, could eventually ease competition for some trades and plant, particularly civil contractors, concreters and plant operators. That will not happen overnight, and the transition from infrastructure to residential work is not seamless, but it is worth watching.

State by state

The ABS reported that total construction work done rose in NSW, Victoria, Queensland, South Australia and the Northern Territory in the June quarter. That spread is worth noting because the national fall was concentrated in engineering, which tends to be driven by a small number of very large projects in particular states. For builders in the eastern states, the state-level rise in work done is consistent with busy building sites and continuing pressure on trades.

In NSW specifically, the picture from other data is of a state still catching up. The National Housing Supply and Affordability Council reported last week that NSW has built 21% of its share of the Housing Accord target and is not expected to reach it until 2032. Rising work done in NSW is a positive sign, but the gap to the target remains large.

The price effect, again

Because work done is measured in dollars, it is worth repeating the caution about prices. When costs are rising, the value of work done can rise even if the physical quantity of building is flat. The ABS’s chain volume measures, which adjust for price changes, give a better sense of real activity, and the industry’s own experience, how many slabs are being poured and frames stood, is the practical check. Builders reading the headline figures should keep that distinction in mind before concluding the market is growing faster than it is.

How the series fit together

The ABS publishes several construction series, and each answers a different question. Building approvals, released monthly, show what has been approved and give the earliest signal of future work. Construction work done, released quarterly, shows the value of work actually carried out in the quarter. Building activity, released later, shows commencements, completions and the number of dwellings under construction.

Put together, the current picture is consistent. Approvals rose strongly over the year to June, driven by units. A record number of dwellings were under construction in the March quarter. And residential work done kept rising in the June quarter. The pipeline is being worked through. The questions for the rest of 2026 are whether new approvals and commencements hold up as finance tightens, and how quickly completions rise.

The engineering side

Engineering construction covers roads, rail, bridges, energy, water, telecommunications and resources projects. It is lumpy, because a few very large projects can move the national total. A 6.0% fall in one quarter, and 5.1% over the year, suggests a period where major projects are finishing faster than new ones are starting. For builders, the main relevance is indirect: engineering and building compete for some of the same trades, plant and materials, so a softer engineering pipeline can ease pressure on those resources over time.

What trades should take from it

For subcontractors, the figures confirm that residential work is still busy, which supports current pricing and workloads. But the forward signals are mixed, and trades who rely heavily on a few large residential builders or developers should keep an eye on those customers’ financial health, especially after this week’s collapse of Bathla Group. Diversifying across builders, and getting paid promptly, matter more when the market is turning.

What to watch

• July building approvals, due from the ABS on 1 September, which will show whether June’s rise in approvals held.
• The national accounts for the June quarter, due in early September, including dwelling investment.
• Building Activity figures for the June quarter later in the year, including commencements and completions.

Questions builders ask

• ABS data
• Building approvals
• Construction costs
• Housing supply

Published 27 August 2026. General information for builders, not legal, financial or engineering advice for a specific job. Check current requirements with the relevant regulator or standard before relying on them.