Fijians priced out of the Real Estate market.

LOCALS are being priced out of the real estate market with real estate agents noting an 80 per cent increase in the housing market in the past five years.

Because these prices are increasing faster than some local salaries, foreign and local investors are pushing local buyers out of the market.

Dr Abdul Hassan, chairman of the Real Estate Agents Licensing Board (REALB), said the price of housing increased substantially over the past five years.

“Definitely the residential property price has increased substantially over the past five-year period, reason being the demand is high and the supply is less.

“Less supply is contributed by the lack of subdivided lots for residential development.”

Other factors include high subdivision cost, high cost of building material, shortage of skilled labour, lack of permanent employment and low wages.

He said the key factor was affordability, which had resulted in people unable to invest in housing.

Mr Hassan said one of the ways of increasing the ownership of housing to first-time buyers should be to reduce the price substantially lower than the market value.

“Housing price affordability is vital for potential customers and provides genuine choice for those who could not otherwise become homeowners.

“Housing grant introduced by the Fijian Government recently is one of the ways to help first-time home buyers.”

Real estate agent Joan Bula of JB Real Estate said homes which averaged $300,000 five years ago, were now sitting at nearly a million dollars.

“There are too many buyers and fewer sellers on the market at the moment,” she said.

“For the past five years, property prices have tripled or quadrupled depending on the house condition and the locations.”

Former wage council member Fr Kevin Barr said while government initiatives were commendable, there was still work to do.

“There is a huge demand for low-income housing for the disabled and the elderly. The Government is doing well in addressing the housing needs but there are a lot of hidden costs involved, it’s debilitating for the low income earners.”

 

Edit: Matilda Simmons  Fiji Times
Thursday, July 28, 2016

Fiji real estate on positive growth

THE Fijian economy  has projected a positive rate of growth of the real estate activities in the next two years, which is in line with the forecasted growth of the country’s economy.

Furthermore, the Reserve Bank of Fiji, in 2015, also noted a positive growth in the new lending for investment purposes in the real estate sector.

Solicitor-General Sharvada Sharma told real estate agents at the Fiji Real Estate Agent’s National Workshop at Novotel in Lami yesterday that over the past three years, the Fijian economy had grown by an average rate of 4.7 per cent, which had spurred a strong growth in the Fijian real estate sector.

While the growth of the industry is important, Mr Sharma said, it was also critical to provide affordable housing to all Fijians, as was provided for in the Fijian Constitution, which was a key priority for the Government.

“The Government is aware of the rising demand for housing, especially in the major urban centres, therefore, over the past year, various policy changes have been undertaken by the Government to ensure that affordable residential properties are available to ordinary Fijians,” Mr Sharma said.

“While the Government is taking steps to make affordable housing available for Fijians, it is also your fundamental duty as real estate agents to work within the ambits of the law and ensure that your industry is made of professional and ethical practitioners.

“Home property is the largest single investment most people will ever make.

“Therefore it is vital that consumers must receive the best possible advice and service from you.”

He said this was the basis for the introduction of the Real Estate Agents Act in 2006.

“The Act essentially regulates the real estate industry in Fiji, in terms of licensing agents and their sales staff and ensures that consumers’ interests are protected.

“We are aware that you as stakeholders have a number of suggestions and recommendations regarding policies and practices related to the industry.”

by Fijitimes Ropate Valemei
Tuesday, July 26, 2016

 

Fiji growth of business in paradise town hampered.

GROWTH of business in Savusavu Town may be hampered by the absence of a chamber of commerce.

And the town’s business community feels nothing is being done to address this matter, although it registered for a chamber of commerce in November last year.

Savusavu Tourism Association chief executive officer Karl Smith said the establishment of such a body to facilitate relations between the business community and Government in expanding the town was long overdue.

Mr Smith said despite their efforts at registering a chamber of commerce for the township last year, nothing was done so far.

“We had sent a draft constitution for the chamber and a list of names for office bearers to the office of the accounting firm handling the registration, but without success,” he said.

“All we are asking is for the appointment of such an office to enable the business community in Savusavu to work closely with Government in expanding the town’s business sector.”

Mr Smith said Savusavu had a lot of potential, adding this could only be fully exploited once a chamber of commerce is set in place to address issues.

Responding to this claim, Fiji Chamber of Commerce and Industry president Peter Mazey, said he was unaware of the application for registration encouraging the business community in Savusavu to set up a chamber of commerce.

“In checking with our secretariat I regret we cannot find whether we have received a formal request from Savusavu,” he said.

“We are planning a visit to our Chamber of Commerce in Labasa in the next few weeks and that would be an opportune time to spend time in Savusavu.”

Edit By:Luke Rawalai
Fiji Times Thursday, July 14, 2016

Fiji To Demarcate Residential Rental Freeze

The Fiji Government will now look at revising the residential rental freeze demarcating high end accommodation from the lower end.

Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum, indicated this during the Fiji Business Forum at the Holiday Inn Suva on Saturday.

He was responding to question raised by c who owns at least 20 apartments in Suva which are more upmarket for expatriates.

Mr Halabe’s concern was the rental freeze over the past nine years had meant they could not increase rental pricing for their high end targeted apartments.

He highlighted that as a result, the Fiji National Provident Fund, which owns a quarter of these properties, had declared them non-performing assets.

He said they had been declared non-performing asset given they could not increase the rental amount since the rental freeze had been in place since 2007.

“I am sure the target was on the lower end where we are trying to protect them. But the upper end obviously which is a totally different market has been inefficiently restricted.”

Mr Halabe emphasised that there was a big shortage in terms of upmarket rental properties/apartments in Suva to which Mr Sayed-Khaiyum agreed.

Mr Sayed-Khaiyum said: “There is a demand in particular in Suva given the growth in the expatriate community, with the growth of the people in the high income bracket.”

The rental freeze was introduced by Government to protect the non-so-rich people from unfair rental price hikes.

But Mr Sayed-Khaiyum now agrees that there needed to be some sort of middle ground reached.

“You are right that with the rental market, there needs to be some sort of distinction made.

“The trick for us is to ensure we are able to make that demarcation in terms of where is the cut-off point.

“This is because the reality also is a shortage of residential homes in the lower end of the socio-economic scale too. Our trick is to ensure we segregate that.”

 

 

Savusavu Hidden paradise tops destination list

GLOBAL travel site TripAdvisor listed Savusavu on Vanua Levu as one of its highly-rated travellers choice for destinations, recognising travellers’ favourite places around the world for 2016.

Neighbouring Taveuni Island and Viti Levu were recognised as two of the top travellers choice islands, and eight Fijian properties included in the 2016 Travellers’ Choice awards for family hotels.

TripAdvisor’s head of destination marketing Asia Pacific, Sarah Mathews, said Paradise Cove Resort on Naukacuvu Island, Turtle Island Resort and Nanuku Auberge Resort in Pacific Har­bour were among the top for Fiji as recognised in the Travellers’ Choice Awards for Small Hotels.

“Fiji properties in the 2016 Travellers’ Choice for top family hotels listing included Radission Blu Resort Fiji Denarau Island, Outrigger Fiji Beach Resort, The Warwick Fiji, Casta­w­­ay Island Fiji, Shangri-La’s Fijian Resort and Spa, Malolo Island Resort, Wyndham Resort, Denarau Island, Sheraton and Denarau Villas,” she said.

Ms Mathews said with an audience of 340 million visitors, there were great opportunities for products in Fiji to reach a mass audience through TripAdvisor.

First published on Fijitimes Thursday, July 07, 2016

Fiji Realtors React to New National Budget

 

The National Budget 2016-2017 has certainly stirred debate and discussions, with some realtors also expressing their views on the financial provisions.
Most notably for real estate agents, the Housing Department has been allocated $25.4 million for the new financial year, which will cover several new residential and resettlement projects and upgrades.
Bayshore Real Estate director, Arif Khan noted that the $174,000 allocated for a review and implementation of a National Housing Policy was a positive step for a policy that promotes affordable and decent housing for all Fijians.
” I’m keen to see the outcome of the policy and the mandate that will have a positive effect on the economy via construction,” he said.
“The effect on real-estate will be based on the scope of the policy and the volume. Housing is a basic human need and  vital to address this need,  considering the growth trajectory of the country and rising land prices especially in urban areas.”
LJ Hooker (Fiji) principal, CJ Shergill said the budget was well balanced, and would allow proper housing for low income earners, leading to increased home ownership.
“The implementation of a housing policy has been long due, and the subsidy towards PRB could be used towards improving existing rentals.”
Allocations include a $1 million subsidy towards the Public Rental Board, which Mr Shergill said could also be used to improve existing rentals.
“There is a pent up demand for rentals especially in urban areas namely Lautoka, Nadi and Suva and since, not all individuals are able to afford market rent, it is vital to subsidize rentals in these areas,” Mr Khan added.
“The private sector as well should be encouraged via tax incentives to build apartments given the increasing need for rental units.”
He also noted that the $10 million addition to Government’s First Home Buyers Scheme would further encourage home ownership.
“The program is welcome and should continue as the Fijian dream should be to own your own home,” Mr Khan said.
“The market demand for lots and homes will increase and help homeownership for those in need of down payment assistance. This will have a positive impact on the real-estate activity and home buying.”
Vyas Deo Sharma of Khelvin Realtors shared these sentiments, though he also had reservations.
“I can see only one place that will directly benefit real estate agents- the First Home Buyers scheme, through the $5000 for first time buyers and $10,000 for first time home builders,” he said.
“If they go through real estate agents, realtors will benefit, otherwise these other projects will likely be handled through Government agencies, which will sell them and may not consider agents.”
The Budget has also  allocated 0.5 million towards a Housing Assistance and Relief Trust, with $2.6 million for development projects in Simla.
“Simla is one of the most sought after neighbourhoods in Lautoka,” Mr Khan highlighted.
“The 36 one- bedroom rental flats is a welcome to the decline rental inventory but it is through our experience that there is a negative impact on the a property owners home value located next to Public Rental Flat. Housing needs to revisit this strategy and see what is the highest and best use for the land slated for the development project.”
Mr Khan noted that the Matavolivoli development project in Nadi would be an ideal opportunity for first time buyers to continue the purchase of affordable housing in Nadi.
“There is a huge demand for housing in Nadi and since Matavolivoli is geared towards a certain tier of buyers, the current urban market activity and prices will continue in the foreseeable future,” he said.
Mr Shergill believes the housing project in Simla would equate to a housing movement in Lautoka, and an economic boost.
“The Matavolivoli development will also see properties in surrounds increase in value and boost economic activity,” he said.
New provisions in the Budget will see VAT charges for those who rent residential accommodation and earn above $100,000, with a new VAT monitoring system to soon be introduced.
A 10 percent capital gains tax will also now extend to the sales of ships and boats, as some who regularly sell property have avoided tax by declaring the properties as their principle place of residence.
Mr Khan believes that if a person has resided in a home for a minimum of two years, they should be given the benefit of declaring the property as their principle place of residence.
“If its less than two years, exemption should be extended for genuine cases of job transfer, health concerns and unforeseen circumstances such as divorce. Since there is no statistic on the number of investors who are regularly selling in this category, it is difficult to assess the true impact on real-estate activity.
“I certainly hope that it does not reduce the investor inventory into the market because a constrained inventory in urban areas will impact the price of homes.”