Fiji rides wave of housing boom 3 Edition

• Published in: International herald tribune
• Main Author: Gould, Lark Ellen
• Format: Newspaper Article
• Language: English
• Published: Paris New York Times Company 09.09.2005
• Edition: International edition
• Subjects: NADI, Fiji
• ISSN: 0294-8052

Koro Sun is representative of a recent trend in Fiji's real estate market: a private home attached to a resort. Because the government waives its 12.5 percent tax on all foreign-owned property and goods attached to a tourism resort, residential developers are teaming with hotel companies to create mixed-use projects that offer the benefits of resort living and participation in a rental arrangement when the properties are vacant. The government also offers easy financing of 50 percent to 70 percent at interest rates of 7 percent to 8 percent, no property taxes, multinational insurance carriers for all coverage, including political risks, and a title system based on British common law. Also, there is no capital gains tax in Fiji. Meanwhile, bulldozers are busy working on at least half a dozen other resort and residence projects, including Denarau Island, Momi Bay and First Landing. Denarau Island has the residential Sheraton Denarau Villas as part of a greater complex that includes two Sheraton-brand resorts, a WorldMark and a Hilton, golf and tennis facilities, a marina and several new hotel properties poised to open in the coming years. Momi Bay has started construction on a five- year project that includes a Marriott with 350 residential lots, 140 villas, a Peter Thomson-designed golf course and a Faldo Golf Academy; a Ritz-Carlton with Ritz-Carlton residences attached; 50 marina condominiums; and a scattering of 600 other residential lots and miscellaneous condominiums. First Landing, a plantation-style assortment of bure-style villas, was built by a former Peace Corps volunteer who went to Fiji 28 years ago to plant pine trees and stayed. It offers ownership of two-bedroom, fully furnished units, starting at 420,000 Fijian dollars, or $245,000, and 97-year renewable leases on the land. "Fiji is a hot, hot market, but you can't expect to come here to get rich quick," [Jim Dunn] said. "Most of the people interested in First Landing see buying a home in Fiji as an investment and a lifestyle move. But maybe a third see it as money."