Fiji’s building approvals for the June quarter have reached a current price value of $193.1 million, marking a significant increase of 70.2 percent compared to the previous quarter. There has been a notable rise in approvals for non-residential buildings, which are expected to continue as more projects move into the permitting stage.
ANZ international economist for the Pacific, Dr. Kishti Sen, and senior international economist Tom Kenny, recently published a report titled “Fiji’s building approvals soar, with more projects coming.” The report highlights Fiji’s impressive investment pipeline for non-dwelling buildings, with various projects such as offices, shops, warehouses, hospitals, factories, hotels, and resorts expected to commence in the next two to three years.
The authors noted, “With ongoing policy and legislative certainty, more of these projects are entering the permitting stage. We expect building approvals to remain strong, in both value and volume, heading into 2025.” They suggested that the total could surpass the previous record of $350 million annually set in 2018.
As approved projects begin, construction activity is anticipated to become a key driver of Fiji’s economy next year. However, the authors warned that capacity constraints could lead to delays in project initiation and completion. “Fiji is losing a lot of construction workers to overseas employers. It will need to maintain a steady supply of skilled workers to ensure a seamless transition from approvals to completion of the next set of projects,” they said, indicating that Fiji may need to import labor to fill these gaps.
They emphasized the importance of improving visa processing times to support construction efforts. Data indicates that Fiji’s building approvals for the first half of 2024 have risen by 45.1 percent compared to the same period last year. Notably, private non-dwelling building approvals surged by 176.2 percent in June to $125.4 million, following a 55.1 percent increase in March.
The report stated that non-residential permits issued in the first half of 2024, totaling $170.8 million, already account for 23.9 percent of the total value of permits issued in the entire 2023 calendar year.
In August, Dr. Sen projected an economic growth forecast of 3.4 percent, suggesting that the private sector would be the main economic driver as job creation and increased household spending power contribute positively to the economy in the second half of 2023 and into 2025 and 2026.