Cabinet has endorsed amendments to the Real Estate Agents Regulations, and the establishment of a working group to monitor the effectiveness of the regulations, to ensure its alignment with market dynamics and stakeholder needs.

The principal regulations were gazetted on the 26th of May 2022, as “Legal Notice No. 76” of 2022. It regulated the commission rates charged by real estate agents for residential properties in Fiji and aimed to ensure fairness and transparency in the market – while protecting the interests of property owners and potential buyers.

The regulations stipulated a cap of 2 percent for commission rates on residential properties, valued at $500,000 or less.

However the Government has revealed that various limitations have been identified, and this includes the negative impact on business operations of real estate agents, its hindrance on market dynamics, and reduced competitiveness in the sector.

Government adds that it also appears that some agents have manipulated the 2 percent commission rate, especially with the introduction of the ‘disbursement policy’.

The cabinet approved the removal of the 2 percent cap on commissions, for the sale of residential properties below $500,000.

This will enable the real estate market to operate on market-driven commission rates, fostering healthy competition and facilitating growth.

In addition, the Cabinet also approved the formation of a working group, comprising the Ministry of Trade and its stakeholders including – REALB, the Consumer Council of Fiji, and the Fijian Competition and Consumer Commission to regularly monitor the regulations, to ensure its alignment with market dynamics and stakeholder needs.