Fiji has reported significant growth in building approvals for the June quarter, with the current value of approvals reaching $193.1 million, reflecting a 70.2 percent increase compared to the previous quarter. This surge is primarily driven by the non-residential building sector, which is expected to maintain its momentum as more projects enter the permitting phase.
A recent report by ANZ’s international economists for the Pacific, Dr. Kishti Sen and Tom Kenny, highlights Fiji’s impressive pipeline of investments in non-dwelling buildings. The report outlines that numerous projects, including offices, shops, warehouses, hospitals, factories, hotels, and resorts, are set to commence within the next two to three years.
The authors indicate that with consistent policy and legislative frameworks, a greater number of these projects are entering the permitting process. They project that building approvals will continue to show strong growth in both value and volume, potentially surpassing the previous record of $350 million in annual approvals achieved in 2018.
As approved projects begin, construction activity is anticipated to become a key driver of Fiji’s economy next year. However, they also warn of potential delays in project commencements and completions due to capacity constraints. The report mentions that Fiji is experiencing a loss of construction workers to overseas opportunities and stresses the necessity of maintaining a steady supply of skilled labor to ensure the transition from approvals to project completion is smooth.
Where skill gaps exist, the authors propose that Fiji may need to import labor. They emphasize the importance of improving visa processing times to support the ongoing construction efforts.
According to their findings, building approvals for the first half of 2024 have increased by 45.1 percent compared to the same period last year. In June, private non-dwelling building approvals rose dramatically by 176.2 percent quarter-over-quarter to $125.4 million, following a 55.1 percent quarterly increase in March. The main drivers of this growth were identified as the shopping mall and warehouse sectors.
Non-residential permits issued in the first half of 2024 total $170.8 million, representing a 23.9 percent increase over the total value of permits issued throughout 2023.
In August, Dr. Sen projected a 3.4 percent economic growth for Fiji, citing the private sector as the primary economic engine moving forward into 2025 and 2026, as job creation and increased household spending power are anticipated.