Major Funding of $60 million for Affordable Housing

To increase home ownership rate in the country, Government last night announced a major funding of $60 million in the 2017-2018 National Budget for affordable housing through the Reserve Bank of Fiji.

Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum said this was an increase from $25m.

Mr Sayed-Khaiyum said this would be made available through banks at a maximum of 5 per cent for households with an income of less than $50,000 a year.

“Government is working with private sectors to find creative ways to develop housing market and place home ownership within the reach of every Fijian,” he said.

“For many years affordability of houses has held back many of our people from ever owning their own homes and right now the rate of home ownership in Fiji is extremely low.

“For those who do manage to buy a home, it tends to happen when they reach a later stage in life and we need to open opportunities for as many Fijians as possible to buy homes they will appreciate.”

Mr Sayed-Khaiyum said in owning apartments, the value of the property increased with the growth in market value.

“For example, when you own an apartment, as the market grows, so will the value of the property and one will be able to afford a bigger and better home,” he said.

“Affordable housing, unfortunately in Fiji, currently has negative connotations. Some low cost housing areas have essentially become ghettos, instead of bringing our people together it has sadly drifted people apart.”

He said home buyers in Fiji faced high cost of fines, high interest rates and the dreams of many Fijians to own homes were being cut short by such issues.

Therefore, he said, Government has involved the Fiji National Provident Fund to construct multi-unit housing at Matavolivoli in Nadi.

“Once completed, the development will offer different price points so on one floor you can have affordable rate and on the second floor you can have a different rate and a top rate on the other floors.

“We won’t just put up a building but build up a community that over time will appreciate the value of these properties,” said Mr Sayed-Khaiyum.

Credit: Serafina Silaitoga, Fiji Times, 30 June 2017

Fiji’s Real Estate Association to hold Election

The newly established Real Estate Association will hold elections for official office-bearers at its first annual general meeting on July 2 in Nadi.

Interim committee President, Vyas Deo Sharma of Khelvin Realtors in Lautoka confirmed that positions available were that of president, three vice presidents, general-secretary, assistant general secretary, treasurer and three committee members.

The AGM will be held at Sitar Restaurant in Nadi’s Martintar on Sunday, July 2 at 10:30am, following the close of nominations on Monday, June 26.

“The objectives and purpose of the association are to act as a lobby group for the real estate industry,” noted Sharma.

These functions extend to fostering goodwill amongst Association members, representing the industry on matters affecting and ensuring that members adhere to a prescribed Code of Ethics of the Association.

“The objectives are to also do all that is possible towards maintaining integrity and honesty in the dealings of its members and work with and encourage a close relationship with other associations, Government departments, individuals and corporations involved in real estate, property ownership, management and development, building and construction, valuation and appraisal or other activity related in any way with the real estate industry,” Sharma added.

He said the Association would also apply the profits (if any) or any other income in promoting its objectives and prohibit the payment of any dividend or payment in the nature of a dividend to its members and would do all such things as incidental or conducive to attaining their objectives, or any of them.

The Association was registered in early June and agents and realty personnel from all over the country are expected to make a show at the AGM. Following the elections of office-bearers, the association is due to apply for provisions under the Government’s next fiscal year budget.

Industry watchdogs, the Real Estate Agents Licensing Board has continually pushed for the formation of a real estate agent’s association for stronger representation of their needs, and has recently concluded a series of meetings with agents in Suva, Nadi, Lautoka and Savusavu.

Discussions at these meetings covered a wide spectrum of issues and included income tax regulations, unlicensed and foreign agents conducting business locally and short-term licensing and permits for specific property sales.

The Board’s proposed Code of Ethics, a review of the Real Estate Act, the regulations of commissions and mandatory training to set industry benchmarks for upcoming agents and aspiring salespersons were also noted, alongside reminders for agents to supply their rental income reports to the Fiji Revenue and Customs Authority.

Credit: Property.com News

Fiji’s TLTB Amensty Period Ends

The i Taukei Land Trust’s (TLTB) amnesty period for defaulting tenants ends June 30, and it warns that it is taking tenants to court for defaulting their rent payment for several years, which could also result in their eviction from the leased properties.

 “As part of TLTB’s arrears drive, some 2059 tenants will be taken to court this year and tenants are warned that TLTB is obtaining FIFA (fieri facias) court orders to repossess leases and evict tenants where and when necessary to ensure rents are paid and landowners receive their dues,” it noted.

 The Board is responsible for the management and administration of Native land leases and says it has collected a sum of $2,528,776.60 in rent arrears this year.  

 These collections resulted from continuous follows-up by the TLTB arrears team and from tenants who took advantage of an interest waiver if rent arrear payments were paid in full, noted TLTB Deputy General Manager Operations, Research & Development, Solo Nata.

 “20369 defaulting tenants have cleared their rent arrears resulting in the payment of $2,528,776.60.

“1716 defaulting tenants are making part payment to clear their rent ar­rears and so far, paid $603,003.97.”

 Nata said tenants had to make use of the Amnesty Period offered by TLTB to waive interest if full rent ar­rears payment were made especially when the amnesty had been extend­ed to June 30, while tenants in rent arrears have been strongly advised to call into any TLTB Office, bank, post offices, or MH supermar­ket outlets to pay their rent and avoid losing their lease properties.

 The hundred per cent waiver on interest for rental dues paid in full was announced in March this year, encouraging defaulting tenants to pay off their accounts.

 The TLTB stated that non-payment of land rent was a clear indication of tenants’ complete disregard of their legal obligations as tenants of the TLTB.

“We will be taking extreme measures if tenants fail to comply with the above including legal actions and as a result tenants may lose their properties,” they warned, adding that payment would avoid unnecessary inconvenience to tenants and their businesses and families.

Credit: Property.com News, 28th June, 2017

Construction for 266 Residential Lots in Waidamudamu Settlement, Nausori.

1,330 residents of Waidamudamu settlement in Nausori will soon have access to better roads, electricity and water.

Speaking at the at the Ground Breaking ceremony for Waidamudamu Informal Settlement Upgrading Project, Minister for Housing Parveen Kumar Bala said upgrading works undertaken will be undertaken by the contractor – Multi Work Civil Engineering which will see the construction of 266 residential lots with 99 years of lease.

He added that upon completion of the upgrading work, a total of 1,330 people will have access to fully serviced housing lots and the necessary amenities.

The civil construction works will cost Government around $5 million.

Credit: Semi Turaga ,Fijivillage.com, 25th May 2017.

Housing Authority of Fiji ‘s New CEO Aims For Speedy, Quality Housing

Quality, speedy construction and housing for all Fijians are among key aims of the newly-appointed top boss of the Housing Authority of Fiji.

Dr Punit Sethi, who is from India, has been appointed as the authority’s new chief executive officer and succeeds the former CEO Joshua Wycliffe.

A civil engineer by profession within a strong-techno commercial background, Dr Sethi said his focus would include taking the housing organisation to the next level of success.

“My aim is to whatever I can do is made visible on the ground. And for that I need support and blessings of my board and staff and the people of Fiji,” he said.

“First of all, I will be going for quality construction and speedy construction because I find that there is a scope for improvement in quality.

“That you will find very soon some construction development activities will start slowly.”

Dr Sethi has also scheduled to meet with stakeholders in the housing sector in the coming weeks to convey his plans and visions on the short term to long term.

“So first, a meeting with all my stakeholders so that I should be winning their confidence, that whatever thinking about Housing Authority, their investment and money are given a good return in an appropriate manner.

“Even meeting with my architects and contractors conveying to them that we want to do proper business and also focusing towards business.”

Dr Sethi said he would also ensure that business practices were carried out in a cost-effective manner with close monitoring of development projects.

According to Housing Authority of Fiji board director and acting chairman Umarji Musa, Dr Sethi joins the organisation with a wealth of experience in expansion, development, quality construction, tendering/leasing, operations among others.

“Dr Sethi has expertise in affordable, low cost housing, smart cities and infrastructure development like sea ports, airports, highways, powerplants and special economic zones,” Mr Musa said while announcing the new appointment yesterday.

“The board is confident in his ability to chart a new direction forward and we are looking forward to working with Dr Sethi.”

Dr Sethi, who has prior experience in companies and projects in the United Arab Emirates, Africa, France, Malaysia and India, will serve in the post for a term of three years which is subject to renewal.

The former CEO, Mr Wycliffe in January last year took up the permanent secretary job for the Ministry of Local Government, Housing and Environment while Isikeli Navuda acted in the post over the period.

New CEO for Fiji Housing Authority

Dr Punit Sethi has been appointed the new chief executive officer of the Housing Authority of Fiji.

The new appointment was announced today by the Authority’s board director Umarji Musa.

Dr Sethi, who is from India, is a civil engineer by profession and brings in a strong-techno commercial  background.

He will serve for a term of three-years and would be subject to renewal as per the advice of the line minister.

Credit: Filipe Naigulevu,Fiji Times 19 May 2017

Sigatoka Council to Propose Town Boundary Extension

The Local Government Committee is now considering the proposed extension boundary for Sigatoka Town.

This following the study and report on Navua Town Declaration and Nadi Town Boundary extension.

Minister for Local Government, Parveen Bala says the committee is expected to visit Sigatoka this month to plan with the Council on the proposed Town Boundary extension.

He says Sigatoka is growing and the government is committed in developing a livable township.

Bala says the government is determined and positively support Municipal reform and operations by ensuring that ratepayers continue to witness capital improvement in the Municipal areas, technical capacity programs and reforms continue to be progressed with the least cost.

Bala says to support these initiatives the government has over the last ten years significantly contributed in the operations and capital investment programs of respective Municipal Councils.

The Minister says this has enabled nine municipalities to maintain services without raising rates.

Bala says he knows that the tourism industry including resorts and hotels are important to the Coral Coast, and the local government look forward to their partnerships along with Sigatoka Town Council, and the people of the province of Nadroga/Navosa.

Credit: Swastika Singh, Fijivillage.com, 12 May 2017.

Fiji Realestate Association Registered

An association of Fiji real estate agents has been formally registered, with elections of office bearers to be held soon.

This was confirmed by Property Experts agent, Johnny Singh at discussions for Nadi realtors hosted at the Nadi Civic Centre on June 2 by the Real Estate Agents Licensing Board (REALB).

The Board had been pushing for an association to better represent the interests of agents, salespersons and general real estate practitioners, and has lauded this latest progress.

“From July 27– which is the new financial year- the association will be able to apply for a grant to the Ministry of Trade and Tourism, so we urge everyone to take ownership because this will help agents and other younger professionals who are entering the industry,” said Board acting CEO and Registrar, Virisila Tuimanu.

In line with its gazette, she also confirmed that they would soon publish lists of valid, invalid and expired license holders.

“Lawyers cannot be agents and so cannot be given licenses to act as such, under the Real Estate Act, and nor can auctioneers be regarded as agents either. Our compliance team is currently looking at complaints against agents and unregistered agents. The validity of licenses cannot be under a year nor exceed five years, and agents must apply for renewals two months prior to the expiry of their licenses. Not many do this and they need to,” Tuimanu noted.

She added that both agents and members of the public could object to license renewals and they Board could consider their protests accordingly, and that licenses could be surrendered voluntarily by agents wanting to end their practise.

Additionally, she said short-term permits were available for specific transactions, permits that run for a certain scheduled period, whereby holders could apply for an extension upon expiry.

This provision objected to by several agents at the talanoa discussion.

“These short-term licenses are unfair on usual agents who work to sell properties for many months, so instead of being handed these types of licenses, they should assist agents with the sale of properties,” said Vector Real Estate agent, Amrish Maharaj.

“We spend so much money on business, so why should one person be granted a permit without incurring the usual, hefty expenditure?” added Sam Mani, principal of Paradise Realtors.

With the Real Estate Act undergoing a review, she said objections to the granting of short-term licenses could be raised or submitted for consideration.

“From the realtors’ point, it could deprive them of business. Over the last year, new applications for permits have been received, including those from overseas agents- which is a big process through the Immigration Department and Investment Fiji,” Tuimanu noted.

REALB Compliance & Monitoring officer, Vinal Singh reminded realtors  to file their rental income reports with the Fiji Revenue & Customs Authority (FRCA), which earlier noted that many former Fiji residents who now reside overseas still derived income from renting out their properties here and had rent collected by real estate agents and other parties or management on their behalf.

Credit: Property.com News

Be Reasonable, Fiji Realestate Agents told

Real estate agents need to be reasonable when selling properties on the market, says Dr Abdul Hassan, the chairperson of Fiji Real Estate Licensing Board.

At a recent meeting with the real estate agents in Suva last week, Mr Hassan said there had been incidences where properties were over-priced with house owners asking more than the valuation of the property.

“There were times where houses were priced at $200,000 but real estate agents promise to get a higher price and selling it at $300,000 so they could collect a higher commission.

“There are currently no restrictions to sell at such absurd prices and agents need to be reasonable,” he said.

Several real estate agents refuted the claim saying such incidences do not happen as the banks do not accept anything above the valuation of the property.

The meeting was an opportunity for real estate agents to discuss issues affecting their industry.

Credit: Matilda Simmons, Fiji Times, 06 June, 2017

Demand for Affordable Houses Continues In Fiji

Demand for affordable housing continues to be a challenge for most Fijians. As the urban population rises, hardworking Fijian families are left on the wayside as they struggle to make ends meet, nevertheless even affording a proper house.

According to economist Dr Neelesh Gounder, it’s more to do with land availability including the type of land and the supply of houses rather than interest rates policy.

“Despite the effort by the state and other stakeholders, housing demand remains unmet because of inability to provide homes that are affordable by the low and middle income earners,” he said.

“Stakeholders including Ministry of Local Government, director of Town and Country Planning, Department of Lands and Survey, iTaukei Land Trust Board (TLTB), Housing Authority of Fiji and Public Rental Board, need to consider long-term strategies towards affordable housing, especially for low and middle-income groups.”

In order to meet the rising demand for affordable housing, he said, consideration must be given to how current planning and zoning decisions impact supply as well as prices.

“In particular, there is a need to evaluate the regulatory framework such as the Town Planning Act and Subdivision of Land Act regarding urban development and how it impacts land subdivision costs and the price of land to build homes. It is not only about making more land available but also providing affordable land to the market.

“Second, stakeholders need to engage landowners with appropriate incentives to make vacant native land available for development in Lami, Suva, Nausori and even Navua.

“As freehold and state land for housing development between the Suva to Nausori corridor is almost consumed, native land remains the only option to increase land availability.

“Further, infrastructure development such as multilane highway between Suva to Navua could open up land required for housing development. This can have impact of reducing pressure on house prices in Suva-Nausori and also cater for rising demand through incentives such as reduction in time required to travel to and from work,” he adds.

Credit: Matilda Simmons, Fiji Times, 06 June, 2017.