Act to blame for lull in sales
Wednesday, December 30, 2015
THE Land Sales Act has created a negative perception of freehold properties in the Savusavu and Taveuni areas to the overseas market.
Ki-Maren Real Estate managing director Aren Nunnink said the Act specifically targeted foreign property owners.
Mr Nunnink said the Act has had a very marked impact for property business in Savusavu.
“The requirement for the compulsory construction of properties has posed a significant decline in interest in the sale of vacant lands,” he said.
“Many investors have become resistant against the timeframe of the two-year deadline by which property owners need to build their houses.
“The actual timeframe that they must spend $250,000 on that dwelling place has gotten very negative response from our client base to the point where clients or prospective buyers are asking whether we have pieces of land with derelict houses or a house so that the land is deemed as not vacant.”
A limited number of those properties, Mr Nunnink said, had been sold and they have had a lot of prospective buyers changed their minds not wishing to invest here.
“At the same time we have had a lot of existing vacant landowners very worried, dropping their prices to at least get some interests.
“The properties that we have sold have been done so at very insignificant prices and even at a loss,” he added.