The Fiji Development Bank (FDB) has raised concerns about the rising house prices and limited land availability, making home ownership a challenge for many Fijians, particularly in urban settings where affordability pressures are the highest. Kinijoji Bakoso, FDB’s Manager for Marketing, Events, Communications, and Customer Advocacy, noted that over the past five years, the surge in residential property prices has significantly outpaced the growth of average incomes, creating substantial hurdles for local buyers attempting to enter the housing market.
The bank highlighted that a strong demand for rental properties reflects the struggles families encounter when trying to move from renting to owning a home. This difficulty is exacerbated by a scarcity of affordable housing options and available land for trade.
To address these pressing issues, Bakoso pointed to the Government’s recent reintroduction of FDB housing loans aimed at supporting low- and middle-income earners. The newly launched FDB Home Choice Loan initiative allows households with annual incomes below $50,000 to access housing loans at a fixed interest rate of 3.99 percent for five years, in cooperation with the Reserve Bank of Fiji.
Moreover, eligible households can also benefit from the Government’s first home purchase grant, which provides up to $15,000 for home purchases and $30,000 for new construction. The program has broadened its scope to include individuals earning between $50,000 and $100,000, who can receive FDB loans alongside government grants of $5,000 for home purchases and $20,000 for construction.
FDB’s commitment extends to households earning over $100,000 per year, offering alternative loan packages to enhance access to home ownership despite the ongoing market challenges. This initiative signals a proactive response to the housing affordability crisis, offering hope to many families who aspire to own their homes and take a step closer to financial stability and security.