Fiji’s June quarter building approvals data was released last week.

It shows that the current (nominal) value of building approvals increased by more than 70 per cent in the June quarter to $193.1 million.

For the first half of 2024, approvals increased by 45.1% compared to the same period last year.

ANZ, in its latest Pacific Insight, says private non-residential building approvals jumped 176.2 per cent in June to $125.4 million, after rising about 55 per cent in March.

It says the mall and warehouse segments were the main drivers.

Nonresidential permits issued in the first half of 2024, amounting to $170.8 million, already represent a 23.9% increase in the total value of permits issued in calendar year 2023.

The Pacific Insight also indicates that non-residential construction opportunities will continue to grow.

It says Fiji has built an impressive investment pipeline for non-residential buildings.

Several projects, including offices, stores, warehouses, hospitals, factories, hotels and resorts, are expected to take off over the next two to three years.

ANZ international economist Kishti Sen says with political and legislative certainty underway, more of these projects are moving into the permitting phase.

Sen says they expect building approvals to remain strong, both in value and volume through 2025.

He says this could even surpass the previous milestone of $350 million reached in 2018.

Sen adds that as approved projects get underway, they expect construction activity to become the dominant driver of Fiji’s economy in 2025.

However, he warns that capacity constraints could delay the start and completion of work.

Sen says Fiji is losing a lot of construction workers to foreign employers and a steady supply of skilled workers is needed to ensure a smooth transition from approval to completion of the next tranche of projects .