Skyrocketing property prices linked to multiple factors

February 27, 2024 6:28 am

A number of factors contribute to the significant hike in the cost of properties in Fiji’s real estate market.

Real Estate Association Committee Advisor, Anand Goundar, says the cost of materials dominates these factors.

He says the cost of materials in Fiji is high, thus raising property prices.

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He adds that the second factor is the unavailability of skilled workers, while the cost of financing is another factor.

“The interest rates are around 6 to 6.5 percent, and then mortgage payments have to be factored in, and the interest has to be factored in as well because our client, after five or ten years, wants to sell their property. They have paid a fair portion of the interest, and they will not sell their property at a loss; they will want to make some money in the end.”

Goundar says the demand for properties in Fiji is high, but the supply continues to be a major issue.

He says this ultimately makes the properties expensive.

Goundar assumes that this issue may take time to address, meaning that prices will continue to rise.