Fiji’s building approvals data for the June quarter revealed a significant jump, with the current price value of approvals reaching $193.1 million, reflecting a 70.2 percent increase quarter-over-quarter.
There were notable gains in non-residential building approvals, which are expected to continue growing as more projects enter the permitting process. ANZ’s international economists for the Pacific, Dr. Kishti Sen and Tom Kenny, released a report titled “Fiji’s Building Approvals Soar, With More Projects Coming,” highlighting Fiji’s strong investment pipeline for non-dwelling structures.
The report detailed a variety of upcoming projects, including offices, shops, warehouses, hospitals, factories, hotels, and resorts, scheduled to start within the next two to three years. The authors emphasized that with ongoing policy and legislative stability, a greater number of these projects are expected to progress into the permitting stage.
They project that building approvals will remain robust in both value and volume moving towards 2025, with the potential to surpass the previous record of $350 million achieved in 2018. As these approved projects commence, construction activity is anticipated to become a key driver of Fiji’s economy next year, although the report warned that capacity constraints could hinder both the start and completion of projects.
Fiji is facing a challenge with the loss of construction workers to overseas employers and will need to ensure a consistent supply of skilled workers to facilitate a smooth transition from project approvals to completions. The report suggests that labor imports may be necessary to fill these gaps, and that improving visa processing times will be vital to support construction efforts.
The data indicates that building approvals in the first half of 2024 rose by 45.1 percent compared to the same period last year. In June alone, private non-dwelling building approvals surged by 176.2 percent quarter-over-quarter, totaling $125.4 million after a previous 55.1 percent increase in March. The shopping mall and warehouse sectors were highlighted as key contributors to this growth.
In terms of non-residential permits, the first half of 2024 saw approvals valued at $170.8 million, already exceeding 23.9 percent of the total permit value for the entire 2023 calendar year. In August, Dr. Sen projected a 3.4 percent economic growth for Fiji, driven primarily by the private sector as more jobs are created, enhancing household spending capacity into 2025 and 2026.