SUNBIZ

Realtor: Commission Rate Is A Shock

“There is a huge shortage of homes - to the tune of approximately 50,000.”
31 May 2022 12:50
Realtor: Commission Rate Is A Shock
BayShore Real Estate director, Arif Khan, makes a point during the 4th National Real Estate Conference 2022 at the Tanoa International Hotel in Nadi on May 27, 2022. Photo: Waisea Nasokia

Moves to regulate the real estate industry have met with opposition, and shock.

It follows a gazette that stipulates a two per cent commission rate for transactions that are less than $500,000.

The two per cent commission is and will be a huge challenge to sustain the business, Bayshore Fiji Real Estate director, Arif Khan, said.

 

“The price of homes is dependent on supply and demand of homes,” he said.

“There is a huge shortage of homes – to the tune of approximately 50,000.”

The percentage of commission prescribed under the gazette was insignificant against the price of the property, Mr Khan said.

 

“Unless, it is a net listing, whereby the realtor puts a price over the vendors’ asking price, then absolutely this type of commission should be regulated and possibly made illegal,” he said.

“But regulating commission percentage should be left to the free market and negotiation.”

The gazette came into effect on May 26, 2022.

 

“There was no lobbying prior to the gazette,” Mr Khan said.

“This is disfavour to the industry.”

“In fact, it comes as a shock.”

 

Indication of moves to regulate the real estate sector was announced in the last National Budget.

Mr Khan is a broker for Bayshore Properties and has been in business for over 20 years.

As of 2008, he sold more than 50 units worth a cumulative sum of $25 million.

 

Feedback: frederica.elbourne@fijisun.com.fj



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