Affordability and credit access major contributor to housing slump
January 23, 2020 6:34 am
Affordability and credit access is a major contributor affecting the real estate sector.
Real Estate Agents believe buying houses has become an expensive affair as people are not able to access funds to invest in the sector.
The Board believes Fijians at times don’t have enough security to get a loan, however, the banking sector says there are many options available to Fijians.
Director of Bayshore Real estate Arif Khan says the capital city has been the most affected by a slump in sales due to access to loans.
“Credit access to loans is a determining factor. I certainly hope banks will not increase the rates which will make affordability harder. If you look at our neighbours in Australia they reduce the interest rates which has stimulated the housing markets.”
The Association of Banks in Fiji Chair Rakesh Ram says all commercial banks are providing competitive home loan packages.
“For the personal housing sector both, residential and residential investment loans, all commercial banks are providing highly competitive home loan packages and interest rates in the market. These range from 4.5 percent to five percent fixed for a year.”
Ram says the variable rate is around seven percent.
He adds commercial banks allow roll over of fixed rates on a case by case basis after the 12 month period.