Fiji’s construction industry is experiencing a remarkable uptick in building approvals, despite a minor 5.8 percent dip in the September 2024 quarter compared to the previous quarter, which saw the nominal value of approvals reach $133 million. More notably, this quarter reflects an impressive year-on-year growth of 68.6 percent, leading to a substantial annual total of $381 million in building permits.
Economists Kishti Sen and Tom Kenny from ANZ attribute this positive trend primarily to activity within the shopping mall and warehouse sectors. They express enthusiasm about the solid investment pipeline for non-dwelling structures, which has already outstripped the previous record of $350 million set in 2018. A diverse range of projects—including offices, shops, warehouses, hospitals, factories, hotels, and resorts—are set to begin within the next two to three years.
The report highlights the advantages of stable policy and legislative frameworks that support the smooth transition of projects into the permitting phase. Sen and Kenny predict that the strength of building approvals will continue throughout the remainder of the year and into 2026. As these projects move from approval to actual commencement, the construction sector is expected to be a driving force behind economic growth, fostering job creation and increasing household incomes.
In a previous report, Dr. Sen mentioned the potential for up to $600 million in private investments to flow into Fiji’s economy next year, greatly benefiting local economic advancement. He observed that the private sector is starting to recover, with investments likely to be concentrated on both residential and non-dwelling constructions that had previously been stagnant.
Despite these positive developments, challenges remain, particularly concerning a shortage of skilled labor, as some construction workers are seeking opportunities abroad. This situation could cause delays in initiating and completing projects. To combat this issue, the economists proposed solutions such as importing skilled labor and streamlining visa processing times.
Fiji’s current growth trajectory portends a promising economic future, characterized by vigorous investment and construction activities. This optimism could enhance the residents’ standard of living by generating job opportunities and boosting household spending power. As the economy advances, continued focus on infrastructure and construction will be crucial for fostering sustainable growth and community development.
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