The Reserve Bank of Fiji’s December Economic Review indicates a mixed outlook for investment activity in the construction sector. While the issuance of completion certificates dropped significantly by 25.1 percent, this decline contrasted sharply with a remarkable 167.8 percent increase in the value of completed projects, indicating that higher-value developments are driving growth.
Simultaneously, the value of work put in place rose by 20.4 percent, suggesting a robust response to rising building costs and the advancement of major projects during the year. Despite a decrease in building material prices in the latter half of 2025, these prices remain 0.9 percent higher year-on-year. However, a more positive sign for future construction activity is reflected in building permits, which rose by 10.4 percent, although the value of these permits has decreased by 3.6 percent.
Significantly, imports of prefabricated materials and other supplies soared by 43.5 percent up to October, indicating a strategic focus on cost-saving measures within the industry to support ongoing construction efforts. Conversely, some areas showed weakness, particularly in lending activities; new loans for investment purposes fell by 2 percent year-on-year, primarily due to a noticeable 15.3 percent drop in lending to the building and construction sector. However, lending for household needs and real estate saw an increase of 16 percent and 1.8 percent, respectively, suggesting strong consumer confidence.
Additionally, while domestic cement sales grew by 5.6 percent in October, they are still 2.1 percent lower cumulatively, largely impacted by the temporary closure of Pacific Cement Limited for maintenance earlier in the year.
Overall, while the economic indicators present a mixed picture, the significant increases in project valuation and building permits provide a glimmer of hope for the construction sector’s recovery.
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