The headline number in the latest ABS release is negative. Underneath it, residential building work done reached the highest quarterly figure since the series began in 1984. Queensland delivered more than half of the growth.
The Australian Bureau of Statistics released its preliminary Construction Work Done figures for the June quarter on 26 August 2026, and the headline is a fall. Total construction work done dropped 2.1 per cent in seasonally adjusted terms to $82.5 billion.
That is the number most of the coverage will lead with. It is also the least useful line in the release for anyone who builds houses.
The fall sits entirely in engineering, which dropped 6.0 per cent for the quarter. Building work done went the other way, rising 1.3 per cent to $45.8 billion and finishing 10.0 per cent higher than the June quarter of 2025.
Residential building work done rose 1.7 per cent to $27.9 billion, up 9.1 per cent over the year. That figure is a record, and the composition of it is more interesting than the total.
What does Construction Work Done actually measure?
Construction Work Done is a quarterly ABS release measuring the value of construction physically completed during the quarter. It is not a count of permits. It is not a count of new starts. It measures work put in place, including work on jobs that commenced in earlier quarters and are still running.
The figures are published as chain volume measures, which means price movement has been stripped out. When the ABS reports residential building work up 9.1 per cent over the year, that is real activity. It is not the effect of higher prices flowing through the same volume of work.
That distinction carries weight this quarter, because dwelling commencements went backwards in the March quarter while work done kept climbing. Both things can be true at the same time. Work done reflects the backlog moving through sites. Commencements reflect what is being added to the front of it.
Residential building work is now at a record high
At $27,867 million, residential building work done in the June quarter is the highest quarterly figure in the ABS seasonally adjusted series, which begins in September 1984. The previous high was $27,763 million, set in the June quarter of 2018.
More residential construction work was physically completed in the June quarter of 2026 than in any quarter the ABS has measured in more than forty years.
More residential construction work was completed in the June quarter than in any quarter the ABS has measured in more than forty years. Detached houses were not the reason.
The record is not being driven by detached housing
Break the residential figure into its three components and the picture changes.
Two of the three are running at double digit annual growth. The one most builders would assume is leading is not.
| Residential component | Jun qtr ($m) | Quarterly | Annual |
|---|---|---|---|
| New houses | 13,826.0 | +1.8% | +4.4% |
| New other residential | 9,902.3 | +1.5% | +14.7% |
| Alterations and additions | 4,138.8 | +2.0% | +13.2% |
| Total residential | 27,867.1 | +1.7% | +9.1% |
Residential building work done, seasonally adjusted chain volume measures. Source: ABS, Construction Work Done, Australia, Preliminary, June 2026.
New house construction is growing, but at $13,826 million it remains below the September 2021 peak of $14,299 million reached during the HomeBuilder period. Five years on, detached work has still not recovered that ground.
New other residential, which covers units, townhouses and apartments, reached $9,902 million. Alterations and additions reached $4,139 million, which is a record in its own right, the highest since that series began in September 1974.
Analysis of the ABS figures shows how the annual growth splits. Residential building work done rose by $2,335 million over the year to June 2026. Units and townhouses accounted for roughly $1,271 million of that, or 54 per cent. Alterations and additions accounted for about $483 million, or 21 per cent. Detached houses accounted for around $581 million, or 25 per cent.
Higher density work and renovation work together carry three quarters of the growth. Detached housing is expanding, but it is not what put the series into record territory.
Queensland is carrying the national result
The state breakdown is where the record stops being a national story.
Ranked by annual growth in residential building work done, the spread is wide enough that two jurisdictions are going backwards while another runs at more than 24 per cent.
| State or territory | Jun qtr ($m) | Quarterly | Annual |
|---|---|---|---|
| Queensland | 6,382.7 | +3.0% | +24.3% |
| New South Wales | 8,299.6 | –0.1% | +9.7% |
| Western Australia | 2,520.9 | –1.9% | +9.4% |
| Victoria | 8,314.1 | +6.0% | +3.4% |
| South Australia | 1,630.1 | +3.6% | +0.4% |
| Tasmania | 299.9 | –5.8% | –4.8% |
| Aust. Capital Territory | 411.5 | –12.8% | –18.1% |
Residential building work done, seasonally adjusted chain volume measures. The ABS does not publish a seasonally adjusted residential breakdown for the Northern Territory in this release. Source: ABS, Construction Work Done, Australia, Preliminary, June 2026.
Queensland residential building work done reached $6,383 million, up 24.3 per cent over the year. That is a record for the state in a series running back to September 1987, and it is being driven by units and townhouses up 37.5 per cent and alterations and additions up 42.8 per cent.
Of the $2,335 million national increase in residential work done over the year, Queensland accounts for roughly $1,249 million. One state is delivering more than half the national growth.
New South Wales and Victoria, the two largest residential markets by value, are both well below their own peaks. New South Wales sits at $8,300 million against a September 2018 high of $9,765 million. Victoria sits at $8,314 million against a June 2018 high of $8,528 million. Both are contributing to national growth. Neither is near its own record.
South Australia is the clearest reason to read the residential line rather than the headline. On total construction work done, South Australia leads the country with 11.5 per cent annual growth. On residential building work done, it is up 0.4 per cent. The gap between those two numbers is engineering.
Tasmania and the Australian Capital Territory are going backwards on both the quarterly and the annual measure. The Australian Capital Territory is down 18.1 per cent over the year, with every residential component falling.
Where this sits against the rest of the year
Total construction work done is still 2.7 per cent higher than the June quarter of 2025, despite the quarterly fall. The trend estimate, which smooths short term volatility, rose 0.7 per cent for the quarter to $82.0 billion.
That runs against forecasts published earlier this year that pointed to a contraction in total construction work done across 2026. The June quarter does not settle that question, but it does not support it either.
Engineering remains the variable worth watching, because engineering and residential building compete for some of the same trades, plant and materials. Engineering activity sitting 5.1 per cent below its level a year ago, while residential runs at a record, changes the balance of that competition.
THE GOOD BUILDER TAKE
The negative headline and the record underneath it are both accurate. They are measuring different industries that happen to be counted in the same release.
The more useful finding is what sits inside the residential number. Units, townhouses and renovation work carry three quarters of the growth. Detached house construction is up 4.4 per cent over the year and still has not returned to where it sat in 2021.
And it is not a national recovery. Queensland delivers more than half the annual growth on its own, while New South Wales and Victoria both sit well below their 2018 peaks and two jurisdictions go backwards. A record national figure can sit on top of a market that looks nothing alike from one state to the next.
The usual caveat, which matters more than usual
These are preliminary estimates, built from responses covering roughly 80 per cent of surveyed construction entities for the quarter. The figures will be revised when Engineering Construction Activity is published on 30 September 2026, and again when Building Activity is published on 7 October 2026.
Records set on preliminary data occasionally do not survive revision. The margin here is narrow. The June 2026 national residential figure exceeds the June 2018 figure by about $104 million, which is less than half of one per cent of the total.
Set against broader Australian construction industry conditions, a record quarter for residential work done describes work completed, not work coming. The releases that describe what is coming have been telling a more mixed story.
Frequently asked questions
Residential building work done reached $27,867 million, or roughly $27.9 billion, in seasonally adjusted chain volume terms. That is 9.1 per cent higher than the June quarter of 2025 and the highest quarterly figure in an ABS series that begins in September 1984.
Queensland, by a wide margin. Residential building work done in Queensland reached $6,383 million in the June quarter, up 24.3 per cent over the year and a record for the state in a series running back to September 1987. Queensland accounts for more than half the national annual increase in residential work done.
Both, depending on which part of the industry you mean. Total construction work done fell 2.1 per cent in seasonally adjusted terms to $82.5 billion, driven by a 6.0 per cent fall in engineering construction. Building work done rose 1.3 per cent to $45.8 billion, with residential up 1.7 per cent for the quarter.
Building Approvals is a monthly release counting permits issued, which indicates what could be built. Construction Work Done is a quarterly release measuring the value of construction physically completed during the quarter, including work on jobs started earlier. Approvals lead. Work done lags, because it tracks activity already underway.
Chain volume measures express activity in constant price terms, so the effect of price inflation is removed. A 9.1 per cent annual rise in residential work done in chain volume terms means 9.1 per cent more construction was actually carried out. It does not mean the same volume of work cost 9.1 per cent more. The reference year for these figures is 2023 to 2024.
These are preliminary estimates based on responses covering approximately 80 per cent of surveyed construction entities. Updated figures appear in Engineering Construction Activity, Australia on 30 September 2026, and in Building Activity, Australia on 7 October 2026.
Source: Australian Bureau of Statistics, Construction Work Done, Australia, Preliminary, June 2026, released 26 August 2026. Component, state and series analysis drawn from ABS Tables 03 and 05, seasonally adjusted chain volume measures.
Last updated: 27 August 2026.
This article is intended for general information purposes only and does not constitute legal, financial, or professional advice. Laws, regulations, and industry requirements vary by state and territory and change over time. Builders and trades professionals should seek independent advice relevant to their specific circumstances before making business, legal, or financial decisions.
Author: TGB Editorial
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