The two per cent cap on commissions charged by real estate agents on properties below $500, 000 has been repealed.

This was announced by the Minister for Trade, Manoa Kamikamica during the fifth National Real Estate Conference on Friday, an eagerly anticipated event organized by the Real Estate Agents Licensing Board (REALB).

Mr Kamikamica said the decision marked a pivotal moment that amplified their unwavering support for the real estate industry and its role in shaping our nation’s economic landscape. ‘

“Let me reiterate. This does not absolve you from being responsible to your clients and the people of Fiji,” said Mr Kamikamica.

“The REALB, the Consumer Council and the Fiji Consumer and Commerce Commission will continue to monitor the agents and the transactions you make with a view to protecting consumers, especially the vulnerable.”

He said raising their standards, transparency and ethics education is key, not just for agents but for buyers and sellers alike.

“Lets empower everyone with knowledge, making informed and ethical decisions that will become the cornerstone of the industry.”

Providing statistical insights Mr Kamikamica shared the Fiji Bureau of Statistics 2022 Report, highlighting that the real estate sector contributes approximately $287 million or three per cent toward the country’s Gross Domestic Product annually.

He also noted a substantial increase in commercials banks’ lending to real estate, signaling growing confidence in the market and creating broader opportunities for real estate transactions. ‘

As the conference focused on raising standards, transparency and ethics, Mr Kamikamica urged collaboration for a prosperous future, emphasising the significance of education for both agents and consumers.

He urged the audience to embrace the opportunities that came with education encouraging constant skill refinement, adherence to ethical practices, and an open-minded approach to new possibilities.

Reactions

Fiji Institute of Real Estate Agent (FIREA) welcomed Government’s decision to lift the percent commission on the sale of properties below $500,000.

General Secretary of FIREA Johnny Singh said the real estate industry was struggling to list and sell properties below $500,000 to locals for a number of reasons including the cost of delivering quality services to clients.

“This has also opened up an opportunity for clients having properties remotely located or in the interior for professional services of Real Estate Agents,” Mr Singh said.

“We now have better opportunity to list and sell properties to our locals in the range of up to $500,000 in a more competitive market and not be limited by the costs in doing this.”

Source: FIJI SUN

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