Initiatives to help in the recovery process

DR ABDUL HASSAN

The Real Estate Agents Licensing Board has noted a drop in the price of properties being sold in recent months.

Board Chair Dr Abdul Hassan says potential home-buyers are being drawn to lots which are more suitable to their budget, while high-end properties are stagnating.

Dr Hassan says statistics show the real estate market has been slow but the recovery process continues gradually.

“This year in June, 106 sales with a property value of $23.5m and in May there were 110 sales with a total worth of properties of $37.9m so this is the total worth of the property sold.”

Dr Hassan says there may be more housing and land development based on initiatives announced in the National Budget and this will create more activity in the market.

“Generally, I would say it has not been that active because the sales number has dropped and the total value of properties being sold over this period has gone down.”

He adds the real estate sector is expected to pick up by the end of the year.

Credit: FBC

Date: 20/8/2020

No new submissions for capital projects for Housing Ministry in the 2020-2021 National Budget – Kumar

Minister for Local Government Premila Kumar

The Minister for Local Government Premila Kumar has confirmed that they have not made any new submissions for capital projects in the 2020-2021 National Budget, but they have requested for funds to continue with the First Home Buyers Grant, First Land Purchases Grant and Social Housing Grant.

She says under the Social Housing Grant they subsidize rent for Public Rental Board and Housing Assistance Relief Trust (HART) tenants.

Kumar says they have also asked for funds in the completion of Koroipita in Lautoka so that homes are provided for underprivileged people in the community.

She says they will continue with the formalization of informal settlements like Sakoca in Nasinu, Tore and Field 4 in Lautoka.

Kumar says three informal settlements should be ready by the end of this year which includes Waidamudamu, Cuvu and Ledrusasa where they will be given 99 year leases.

She says it is better for them to complete the existing projects rather than asking for more.

$2 million was allocated in the 2019-2020 National Budget to upgrade informal settlements.

Kumar says over 520 people have been assisted through the First Home Buyers Grant, First Land Purchases Grant with over $5.3 million.

She says in this time when a country goes through a recession, as a Ministry they need to focus on planning, change in policies and reviewing procedures so that they can streamline the system and reduce any wastage if there is any.

Kumar says if they fix their policies and procedures they will minimize corrupt practices.

She says there should be checks and balances in place, like who decides on who should be the new tenant.

Kumar says the ministries’ budget is expected to decrease depending on what the focus of the budget would be.

Credit: Fiji Village

Date: 15/7/2020

40% of businesses on partial operations and risk closing

FCEF PRESIDENT SANDEEP CHAUHAN

A recent survey by the Fiji Commerce & Employers Federation has indicated that 40% of its members are on partial operations and risk closing.

FCEF President Sandeep Chauhan says a lot of businesses have suffered throughout the world and Fiji is no exception.

Chauhan says many local businesses are not operating at a hundred percent since the pandemic hit adding that a lot of business houses are struggling to remain open.

“We’re expecting about 40% of the businesses have had some sort of disruption to their business. Either some have closed down, some have partially closed or scaled back hours. If you go around the country you’ll see different scenarios or from one township to another so if you look at Nadi which is kind of operating at very little on a very minimal scale but on the other hand when you look at towns like Ba or even cities like Suva they’re scaling. They’re still operating but perhaps not at 100%.”

The Federation says it has also made its submissions for the 2020/2021 National Budget.

“Our submissions have been around helping to keep money within the businesses so if we can come up with incentives that will mean that businesses can keep operating with having the cash in the business – then they can keep people employed abit longer then what they would have otherwise. Because they will need money, so gone are the days where you could look at a balance sheet and say we’ve got a very healthy business but that doesn’t necessarily equate to cash.”

The FCEF yesterday signed an MOU with Fiji Trades Union Congress to implement a Transition to Business project which aims to assist redundant workers venturing into self-employment.

Credit: FBC

Date: 2/7/2020

PRB has not evicted anyone from any of their flats during the COVID-19 period – Patrict Veu

Public Rental Board Acting General Manager, Patrick Veu confirms that no one has been evicted from any of their flats during the COVID-19 period, however people who were earning more than $16,500 and have lost their jobs or are on reduced hours have been reconsidered to stay in their flats.

Veu says families whose annual income is more than $16,500 are not eligible for PRB flats.

He says they have issued eviction notices but the actual process of getting people to move out of the flats because they are facing financial difficulties has not been done.

Veu says they have slowed down this process.

He says they are trying to identify those who are still earning more than $16,500 to serve them with notices as they are not eligible to live in these flats.

Meanwhile, the Minister for Local Government and Housing Premila Kumar says 112 PRB tenants have been served with eviction notices because they do not qualify to live in those flats. Kumar says the flats are given to families on subsidized rates, which simply means that they try and save money and move out when they have enough savings.

PRB has 24 rental estates comprising 1,753 rental flats.

Credit: Fijivillage

Date: 2/7/2020

RBF says labour market conditions worsen while consumption and VAT collections continue to contract

The Reserve Bank of Fiji. [image: file]

The Reserve Bank of Fiji states that overall labour market conditions have worsened due to the weakening domestic economy.

The RBF says a total of 85,959 FNPF members received around $54.2 million under the COVID-19 withdrawal scheme in phase one, while 15,920 members will be paid around $17.5 million in phase two over a period of 10 weeks.

In addition, the number of jobs advertised contracted by a significant 48.8 percent on an annual basis up to May, indicating depressed recruitment intentions and business activities.

Upto May, contractions were noted in commercial banks’ new lending for consumption purposes by 20.2 percent, net VAT collections was down by 30.1 percent, as well as registrations for new vehicles were down by 45.3 percent and secondhand vehicles were down by 65.5 percent. In the same period, domestic cement sales were down by 18.8 percent and new lending for building and construction purposes were down by 28.7 percent.

Excess liquidity in the banking system remained ample at $849 million at the end of May on account of RBF’s investment in government bonds, higher foreign reserves and the reduction in currency in circulation over the month.

Annual inflation fell further to -1.7 percent in May from -1.3 percent noted in April and was significantly lower than the 2.1 percent recorded in May 2019. The outcome was largely driven by lower prices for yaqona, fruits and vegetables, kerosene, petrol and diesel.

As at today, foreign reserves totaled $2.181 billion, sufficient to cover 6.8 months of retained imports.

Credit: Fijivillage

Date: 30/6/2020

Ideal time to invest in stock market: SPX

THE SOUTH PACIFIC STOCK EXCHANGE SUGGESTS THIS IS AN IDEAL TIME TO INVEST IN THE STOCK MARKET.

The South Pacific Stock Exchange suggests this is an ideal time to invest in the stock market.

Chief executive Krishika Narayan says while the overall statistics indicate the market is low, if an investor has extra savings and is thinking of buying shares, this is the right time.

Narayan says the rule of thumb in stock exchange is that you should always buy low and sell high.

“So if you do buy shares now and you hold it for a longer term, when the market does revert and bounce back then chances are that you will be able to sell at a higher price and you will be able to make the gain from the stock market.”

The chief executive also suggests that investors with stocks should hold on to the shares if they do not needed the money this time.

“So if you are in that portfolio where you have actually invested into the stock market and you are thinking the market is going down – should I sell at this point in time then the answer is no. So ideal time to buy and if you are already an investor please hold on to it.”

She says because the market is going through a dip, chances are that if you sell at this time – then you might not be able to profit as much from the stocks as you had initially anticipated.

Credit: FBC

Date: 15/6/2020

Sixty-six businesses closed due to COVID-19 crisis

SIXTY-SIX BUSINESSES HAVE CLOSED DOWN DUE THE IMPACTS OF THE COVID-19 CRISIS. [FILE PHOTO]

Sixty-six businesses have closed down due the impacts of the COVID-19 crisis.

Minister for Local Government Premila Kumar says the survey conducted by municipalities highlights the virus has had an adverse effect on Fijian businesses who suffered the consequences of the economic fallout.

Kumar adds their detailed damage assessment shows that most of these businesses are restaurants and liquor shops that depend mostly on the disposable income of Fijians and from the tourism industry.

“The on-the-ground survey carried out by the Municipal Councils showed that the economic impact of COVID-19 is evident throughout our municipalities; 25 businesses in Suva, 14 businesses in Nausori, 16 businesses in Labasa, seven businesses in Lautoka and four businesses in Nadi have closed down due to COVID-19 to date”.

The Minister adds that we must prepare for a very different picture for the remainder of the year as the COVID-19 pandemic is expected to have further impact on economic activity.

Credit: FBC

Date: 28/5/2020

Increase in property listings: Khan

The real estate agents have seen a tremendous increase in the listing of the rental properties.

Director Bayshore Real Estate Arif Khan says the increase is predominantly from the western division- the tourism hub which has significantly been affected by the COVID-19 pandemic.

Khan says many rental properties are now vacant due to the tight budget of Fijians.

“Some are able to survive by pulling resources together, others are living to stay with their parents and some are even going to their villages. There is an increase in the number of listings because of job losses.”

Khan says while agent activities have increased, the market has slowed down due to the pandemic.

The Real Estate Agents Licensing Board believes it will take more than 6 months for the sector to recover.

“There will be a big impact on the real estate agents and in terms of the income that they will derive from the real estate dealing. We hope this will pick up in 6 months or so.”

The REALB believes with uncertainty in the market due to the deadly virus Fijians are hesitant to deal with properties.

Credit: FBC

Date: 21/5/2020

214 applications for Housing Authority COVID-19 relief packages

The Housing Authority of Fiji CEO Robert Sen

The Housing Authority of Fiji has so far received 214 applications for its COVID-19 relief packages.

CEO Robert Sen says about 70 percent of the applications have been processed.

He says a few applications have been declined because of incorrect information and documentation but they have written to these customers to provide further information so their applications can be reviewed.

Sen says of the 214 applications they have received, 147 are from the Central Division and 67 are from the Western Division.

He says majority of the applications from the Western Division were from affected workers in the Tourism Sector.

Sen adds their COVID-19 assistance was for customers who have lost their jobs, are on reduced hours or leave without pay for a certain period of time.

He further says most of the customers have applied for deferring of repayment for three months while a few have changed the contract whereby the loan repayment can be extended and a few have also opted to pay interest only for 3 months.

Sen says obviously this will have a strain on Housing Authority’s cash flow as these customers’ repayments have been deferred for the next three months.

Credit: Fijivillage

Date: 7.5.2020

Listings of property at all time low

The ongoing COVID-19 pandemic and its impact on the economy has pushed the real estate sector to an all-time low.

The Real Estate Agents Licensing Board says this is resulting in low sales and reduced prices by property owners eager to sell.

REALB Chair Dr Abdul Hassan says there may be more of a slowdown post-COVID-19.

“In the next month or so there will be a big impact on the activities of the real estate agents in terms of the income that they will derive from the real estate dealings.”

The Board says with uncertainty in the market due to the deadly virus Fijians are hesitant to buy because no one knows when the economy will recover.

Housing Minister Premila Kumar says they have already started seeing a reduction in the property prices, but it’s not all doom and gloom.

“Of course there are people who have the money so they will grab this opportunity. COVID-19 is a mixed bag of feelings. One is there are opportunities for people. People who have money can invest in the properties as the prices will come down.”

According to the REALB, April saw the lowest number of property listings by real estate agents.

Credit: FBC

Date: 8/5/2020