Fiji is in a much better position today than it was six months ago.
Presenting at the Fiji Human Resources Institute Convention this morning, Reserve Bank of Fiji Governor Ariff Ali says general business has improved sharply and people are spending more on the back of the economy opening.
Ali says he is optimistic that growth will hit double digits next year.
“So far this month tax revenues are up by 20% and I hope that this trend will continue, commercial banks have now started to lend for both consumption and investment purposes and people are still buying cars and the number of cars on the road is increasing. Job advertisements on a month-to-month basis have now shown 4 consecutive months of more jobs being advertised.”
Ali says they also noted that people were spending more time on grocery shopping and getting medication at pharmacies since restrictions were lifted.
He says that projections for 2023 indicate that growth will continue to rise based on the tourism numbers that will definitely shoot up.
“So government’s total debt is around 80% at the end of the last financial year it was projected to rise to around 92% but with borders now opening there will be more tourists coming that will contribute to GDP and therefore taxes and I think the debt to GDP ratio will not rise to 92% but will be less.”
Ali says he is confident that by 2023, Fiji can expect the same number of tourists pre COVID.
$2.6 billion was also classified as COVID loans that businesses were not able to pay principal or interest.
However, the Governor says with borders to re-open from next Wednesday, this will definitely decrease.
Ali says banks also remain strong as they have an excess of $600m in buffer.
The Real Estate Agents Licensing Board has been working on five critical projects to improve service delivery.
Board Chair, Doctor Abdul Hassan says they intend to enhance organizational capacity and foster real estate industry compliance.
Dr Hassan says they have developed an Online Agents Licensing Portal to address the issue of bogus agents.
“The list of agents have been shown and all the potential buyers of the properties can look through the website to see who the registered agents are and who are the salesperson for those agents. Definitely, if Fijians are more cautious while going through our records they will be able to identify who are the real agents and the salespersons.”
The other critical projects include a new logo, the 2022 – 2025 Strategic Plan, a revamped website, and the National Property Sales Database.
A Fijian who has built a successful business empire in United States of America (USA) has bought the troubled and closed Pullman Nadi Bay Resort & Spa Fiji.
The new owner is Paradigm Group of companies, chief executive officer Ganendra Mangal Singh, also better known as Jay Singh.
He sealed the deal in October, a source close the transaction confirmed. This is a major boost for tourism development with Mr Singh’s own hospitality industry property success.
About Mr Singh According to the Fiji Embassy in Washington DC website, Mr Singh was officially recognised by the United States as Fiji’s Honorary Consul in South San Francisco, California on February 25, 2015.
The website said: “Mr Singh was born in Fiji and migrated to the US with his family as a young man. Once in America, he found his home in IT for several years, working for “Fortune 500” companies and accumulating the necessary skills that would pave his road to entrepreneurial success.”
“During his time as a project manager, the opportunity to conduct feasibility studies for his various projects allowed him to hone in on his analytical skills and translate them for his own future investment ventures.”
“Mr Singh has built an admired real estate portfolio.”
“From humble beginnings in 1995, when he acquired his first hotel, until today, he has continued to add to this portfolio which includes: both boutique and franchise hotels, shopping centers and office and mixed use commercial properties all across California from Napa, Downtown San Francisco, and Silicon Valley to Santa Barbara.”
“In addition to his real estate investments, Mr. Singh has also been an angel investor in several startups.”
“Today, most of Mr Singh’s efforts are focused on future acquisitions, new developments, and start-ups.”
“He delegates the operation of his multiple hotel properties to an experienced and talented Management team who share in his long-term vision for Paradigm Group.”
“In addition to his professional accomplishments, Mr Singh has become a well-known and respected ally and advisor to the Fijian community both here in the US and back at home.”
“New startups as well as cultural and social events and organisations have been the beneficiaries of his experience for over twenty years now.
“Mr Singh is currently, or in the past, served on several industries related boards and committees, CVBS and community organisations.
“Mr Singh holds a Bachelor’s Degree and currently resides with his wife and two children in Hillsborough, California, USA,” the website said.
Background The Pullman Nadi Bay Resort & Spa Fiji was initially developed by Travel World Resorts Pte Ltd, a subsidiary of the Gokal Group of Companies, in support of Government’s drive for tourism rooms.
The Pullman brand belongs to Accor Hotels and they had initially managed the resort for Gokals.
It opened in May 2019 at Wailoaloa Beach.
There are a number of well-established such operations there such as Aquarius, Smuggler’s Cove, Nadi Bay Resort, Blue Water Lodge, Club Fiji, Beachside Resort, Grand West Villas and Wailoaloa Beach Resort.
The resort closed after the economy faced a downturn in 2019, soon after Pullman Nadi Bay opened and then the hammer blow of COVID-19.
The developer’s primary financers were Fiji Development Bank (FDB) and HFC Bank.
The resort was first put up for sale, by the Gokal Group in June, 2019 and was being sold through Colliers International of New Zealand and local agents My Island Home Fiji of Nadi.
August last year, FDB advertised a mortgagee sale of the property.
Last year there were winding up applications filed in the Lautoka High Court by AK Lawyers against the resort developers over alleged outstanding payments.
Supporting and reviving businesses and private sector investment activity is critical for the sustainable recovery and growth of the region.
As tariffs progressively decline, Minister for Commerce and Trade, Faiyaz Koya, says thanks to unilateral liberalization and trade agreements discussion on restrictive trade procedures and non-tariff measures have acquired more relevance.
Koya says trade frictions related to cumbersome and costly border procedures have become particularly prominent among developing countries.
“Hence, in the context of rising global trade issues, regional trade facilitation mechanisms are a key means of boosting existing and emerging trade agreements, reducing costs to trade, and propelling inclusive growth. Such a mechanism can also make a difference in our ability to face the long-term challenges confronted by our region, by facilitating market access, strengthening value chains, and boosting our regional economy.”
Koya says there are areas where specific trade facilitation measures could be sequenced strategically to harness trade facilitation reforms.
Fiji will re-open its international borders for repatriation flights from 28 countries today.
This is the fruit of months of hard-work in COVID mitigation efforts.
This window of travel is only open to Fiji’s travel partners.
Minister for Tourism and Transport, Faiyaz Koya, says they are excited for the re-opening of borders, a development that has been in the pipeline for months.
“For our passport holders and permit holders with the three days window before you can get tested”
While residents and permit holders are looking forward to return to Fiji, tourists from other destinations are also eager to visit our shore.
The official opening of our international border will be on December first where tourists and visitors will be able to enter our country for the holiday season.
The restrictions on the property market are getting tougher as loan to value ratio restrictions come into place.
From today, the amount of lending banks can make to owner-occupiers with small deposits, will be halved to no more than 10 percent.
But despite the tougher lending conditions, one mortgage broker said people shouldn’t expect an immediate cooling down for property.
The Reserve Bank’s move means fewer people with a house deposit of 20 percent or less will get bank finance.
Now, banks can only apportion ten percent of their lending to that higher loan to value ratio.
John Bolton from mortgage broker Squirrel said there will still be options for low deposit holders.
“Bear in mind that new builds are exempt, and if you think about a lot of the first home buyer activity these days, it’s actually new builds, off plan, terraced housing, apartments and maybe small houses in some of these new subdivisions.”
LVR lending restrictions are already tighter for investor loans.
The Reserve Bank policy is designed to rein in risky lending among first home buyers who might borrow too much while interest rates are low.
But Bolton said the new rules won’t halt the summer sales.
“If you look at the market at the moment, it’s still pretty hot out there and I think most people sort of feel that when New Zealand gets through this latest run of Covid and we come out of restrictions, there’ll be a bit of a surge, as it has been in the past because there’s clearly a lack of property on the market at the moment.
The ANZ bank’s latest housing market report says house price inflation remains elevated but is slowing.
Its chief executive Antonia Watson said the LVR restrictions are just one part of ensuring stability in the financial system.
“It’s one tool in the toolbox, I mean our mortgage portfolio is stronger than it’s ever been. We’ve got a very low portion of our book at higher than 80 percent LVR and even though the rate that the speed limit has been reduced to 10% we haven’t been writing much over 10 percent anyway.”
Watson said customers taking up high LVR loans need to be aware of what they’re getting into, and that they can definitely afford the repayments.
The chief property economist at CoreLogic, Kelvin Davidson, said while LVR’s should take effect, it’s the rising cost of mortgage payments that will have a bigger impact.
“To date the LVR has probably have been the biggest restraints certainly for investors and going to kick in soon for owner occupiers. So, probably up until now, they’ve definitely been the bigger influence.
“But going forward from here, mortgage rates definitely a key consideration for everybody. I think that they’re already rising probably faster than what people might have thought even a month or so ago.”
Bayshore Fiji Realestate Blog 