Fiji has announced that building approvals for the June quarter have reached a total value of $193.1 million, representing a significant increase of 70.2 percent compared to the previous quarter. The report highlights substantial growth in non-residential building approvals, with expectations for continued strength as additional projects enter the permitting process.
In a recent report authored by ANZ international economist for the Pacific, Dr. Kishti Sen, alongside senior international economist Tom Kenny, it was revealed that Fiji is cultivating a robust pipeline of investments in non-dwelling constructions. Various upcoming projects, including offices, shops, warehouses, hospitals, factories, hotels, and resorts, are scheduled to commence over the next two to three years.
The report emphasized the ongoing policy and legislative certainty that is facilitating the entry of more projects into the permitting stage, projecting that building approvals will sustain strong performance in terms of both value and volume through 2025. It is anticipated that these approvals could potentially exceed the previous annual record of $350 million set in 2018.
As approved projects move towards commencement, construction is expected to become a key economic driver for Fiji next year. However, concerns were raised regarding potential capacity constraints that could cause delays in project starts and completions. The report noted that Fiji is experiencing a loss of construction workers to overseas opportunities, emphasizing the need for a reliable supply of skilled labor to ensure a seamless transition from project approvals to completions.
To address labor shortages, the authors suggested that Fiji may need to import workers where skills gaps exist and highlighted the importance of improving visa processing times to support the construction effort.
Data revealed that building approvals for the first half of 2024 have increased by 45.1 percent compared to the same timeframe last year. In particular, private non-dwelling building approvals surged by 176.2 percent in June, reaching $125.4 million, following a 55.1 percent increase in March.
The report underscored that the shopping mall and warehouse sectors were the main contributors to this growth. Additionally, non-residential permits issued in the first half of 2024, totaling $170.8 million, already reflect a 23.9 percent increase over the total value of permits issued throughout the entire 2023 calendar year.
In August, Dr. Sen forecasted a 3.4 percent growth for Fiji’s economy for the coming years, with the private sector playing a crucial role in driving this growth as more job opportunities arise and households gain increased spending power.