Fiji riding wave of optimism

Fiji's property market is riding high on increased tourist numbers, international investment and development in the tourism sector.

The island nation is striving to establish an economy that can sustain steady economic growth, a goal best achieved through encouraging investment and foreign exchange growth, says Bayleys Research in a new report on the Fiji market.

Gerald Rundle, manager of Bayleys Research, says tourism is the main driver behind Fiji's economic expectations. It is the most important industry and largest foreign exchange earner.

Visitor arrivals from January to August this year, 326,060, were up 18.7 per cent on the same period last year. The number of New Zealand and Australian tourists rocketed 45 per cent and 23 per cent respectively.

Fiji's Budget forecasts that visitor arrivals will reach a record 445,000 this year and increase to 472,000 next year.

Rundle says large overseas operators are increasingly recognising the potential and several developments are under way along the western coastline between Nadi and Suva.

One of the largest is a 390ha site at Momi Bay, 30 minutes south of Nadi. Stage one of the development will be completed next year and includes a 250-unit Marriott Fiji Spa Resort Hotel featuring the country's first overwater bures, and a Peter Thomson-designed international golf course.

A Ritz Carlton will be built adjacent to the Marriott later.

The Momi Bay project is significant for the growth of the Fiji tourism industry, says Rundle. The number of international, five-star, resort-type hotels in Fiji is limited, with much of the accommodation dominated by smaller-scale hotels, backpackers, homestays and exclusive island-based luxury resorts.

The Marriott and Ritz Carlton brands are very strong in the US and Momi Bay provides an opportunity to attract more American tourists, particularly those at the luxury end of the market, says Rundle.

Immediately behind the main hotels at Momi Bay and fronting on to the golf course or waterways are a variety of house and lifestyle freehold sections available for private ownership. Sites are priced from $252,000 and complete home packages are also available.

The project is being marketed by Bayleys Real Estates' Chester and Louise Rendell, who have been involved in the sale of waterfront properties in Fiji and other South Pacific islands for many years, and Monica Ah Koy, who has been Bayleys' representative in Fiji for the past year.

Bayleys has been active in Fiji and the South Pacific for more than 10 years but recently intensified its presence in response to growing international interest in Fiji property. It established a corporate base on Denerau Island and set up a dedicated website (www. bayleysfiji.com.fj).

Bayleys' executive chairman, John Bayley, who has spearheaded the push into Fiji, says an increasing number of investors and developers are recognising the lifestyle and investment opportunities.

Interest is not only coming from New Zealand, he says. International investors are also discovering Fiji. A recent Bayleys exhibition in London of waterfront and prestige properties drew strong interest.

Fiji provides a great year-round lifestyle environment with consistent weather patterns and, although prices for waterfront property have been increasing, they are still relatively inexpensive in an international context.

The wide variety of investment options range from bare land through to villas that are part of a resort.

Many have management and leasing options, allowing owners to earn an income from their villas when they are not using them.

A good example of this is the Jean-Michel Cousteau Fiji Islands resort at Savusavu Bay on Vanua Levu, which is one of several Fiji offerings featured in Bayleys' latest Waterfront portfolio. Luxury 190sq m villas overlooking the Koro Sea are being offered for sale through the Rendells. Owners can also place their villas in the resort rental pool.

The Rendells are also marketing land and house packages in two luxury small-scale developments planned at Champagne Beach and Two Islands in the Yasawa Islands.

Villas can again be retained for private use or provide an investment return as luxury accommodation.

For those looking for their own private island, the 13.6ha Nagigia Island Resort is for sale off the southern island of Kadavu, about 45 minutes' flying time from Nadi.

The resort has 10 bures on the water's edge, a restaurant and a bar.

There are also 21 approved sites for further waterfront villas and potential for an additional 12.

Chester Rendell says half of the island is on the edge of a deepwater trench, with the balance of the foreshore bordering a magnificent aqua-blue lagoon.

Development opportunities marketed by Bayleys include 4000sq m of beachfront, with consent to divide into five lots, on Nananu-I-Ra Island at the northern tip of Viti Levu.

On the western end of Vanua Levu, 4050ha of freehold land known as Tikina-i-ra is also for sale, comprising one of the largest freehold estates in Fiji with significant potential for future tourism development.

The property has a coastline of almost 25km. Investment opportunities include tourism, lifestyle blocks or an exclusive retreat. Tenders for the property close on February 25.

Rendell says significant freehold land is rarely available and accounts for only 8.2 per cent (149,08ha) of all Fiji's land. Native land makes up the bulk of landholdings (83.4 per cent) and is leased through the Native Land Trust Board.