SUVA, Jan. 6 (Xinhua) -- The Fiji Development Bank (FDB) said that rising house prices and limited land supply continue to make it unaffordable for many Fijians, especially in urban centers where housing affordability pressures are greatest.
Kinijoji Bakoso, FDB manager for marketing, events, communications and customer advocacy, said while residential property prices have continued to rise over the past five years, average incomes have not kept pace, making it harder for local buyers to enter the market, reported Fiji Broadcasting Corporation on Tuesday.
He added that strong rental demand reflects the ongoing struggle many families face in transitioning from renting to ownership, driven by limited availability of affordable housing and tradable land.
However, the manager said the Fijian government's decision to reintroduce FDB housing loans earlier this year marks a major shift aimed at supporting low- and middle-income earners.
Under the FDB Home Choice Loan, households earning below 22,000 U.S. dollars a year can now access housing loans at a 3.99-percent interest rate, fixed for five years, through a partnership with the Reserve Bank of Fiji.
These households may also qualify for the government's first home purchase grant of up to 6,600 dollars for buying a home or 13,200 dollars for construction. ■