The Real Estate Association has expressed strong support for the recent decision by the cabinet to reverse the two percent commission cap for the sale of residential properties below $500,000.
According to the Association, this move, amending the Real Estate Agents (Fees, Forms, and Appeals) (Amendment) Regulation, removes a significant hurdle that was hindering market dynamics.
The association had raised the issue with the coalition government and Trade Minister Manoa Kamikamica.
Real Estate Association committee advisor Anand Goundar says the two percent cap created an imbalance in the market.
“The other two percent was just not sufficient for us to operate the business. So it’s a fair decision, it’s a great decision, as I said it’s going to be a market driven commission and there will be multiple benefits.”
Bayshore Real Estate Director Arif Khan says this will not only benefit real estate agents but consumers as well.
“Now the consumers will be able to get the level of service they were getting before the regulation and the agents would be happy that they will be able to derive a greater benefit which will allow them to sustain their business. So all in all, I think win win situation as well for the government because there will be generation of greater vet revenue, et cetera, and tax revenue from the real estate community.”
A working group will also be formed to monitor the regulations to ensure its alignment with market dynamics and stakeholder needs.
The group will include Ministry of Trade, Real Estate Licensing Board, Consumer Council of Fiji and the Fijian Competition and Consumer Commission.