Location: The Warwick Fiji, Korotogo
Chairman and Members of Real Estate Agents Licensing Board,
Members of Real Estate Agents Licensing Board,
Respected CEOs,
Members of the Real Estate Association,
Distinguished Speakers and Guests,
Ladies and Gentlemen,
Bula Vinaka and a very good morning to you all.
I remember not too long ago, three years to be exact, I addressed most – if not all of you at the very first National Real Estate Conference for Agents and Salespersons. The theme then was “Professionalism and Ethics”. It was a timely reminder to the industry players of your responsibility to the public and potential clients.
Ladies and Gentlemen,
It is therefore my pleasure to once again join you all at the 3rd National Real Estate Conference for Agents and Salespersons.
The theme of today’s conference “Impact of COVID-19 on Real Estate” – favours the unprecedented circumstances confronted by economies world over. In fact, it is very closely aligned to “Professionalism and Ethics” as well as last year’s theme “Resolving Challenges in the Real Estate Sector”.
The commonality here is to understand how we can move the real estate sector forward, while maintaining trust – which today is an invaluable currency.
Ladies and Gentlemen,
Leading up to this year’s conference, the known challenges encountered by the real estate industry have significantly changed due to COVID-19. Meaning, that we have to work even smarter and harder to overcome the uncertainties brought by the pandemic.
I wish to reiterate that the real estate industry plays a very important role in a country’s economy, as a key pillar for economic growth, creating jobs and creating critical linkages with other sectors.
However, the pandemic led to declines in disposable incomes and Government tax collections, higher unemployment and lower foreign demand for merchandise exports. These are expected to negatively affect financial and insurance activities, construction, manufacturing, real estate, to name a few.
The pandemic has brought the real estate industry to a near-halt. According to the Reserve Bank of Fiji, January 2021, Economic Review, commercial banks’ new lending for investment purposes declined by 24.9% in 2020, driven by lower lending to the real estate (-25.7%) and building & construction (-23.1%) sectors.
Ladies and Gentlemen,
The role of you, as real estate agents, and your employees is vitally important to ensure the sector is able to bounce back and at the same time you are conducting yourself in a professional and ethical manner.
I raise this caution, as in 2020, REALB received and addressed about 60 complaints. It’s important to note that the key grievances were related to conduct of agents. Bogus agents, failure to obtain consent from the rightful owner before advertising, failure to refund deposits, and salesperson complaints against agents are the top issues.
We want these issues to be in the foreground. And it must be addressed by the industry and the Government together to ensure the industry can operate at its full potential.
Whilst the Fijian Government continues to create an environment where Fijians are able to have access to affordable homes, you, the industry players, need to conduct your duties with integrity and high professional standards.
I want us all to remember our duty of care to the public, especially during this time. The real estate sector is suffering, but so are Fijians. So, we have to ensure to empathise and uphold integrity in our dealings. No matter how great the trade or commission, it is hard earned money that clients, our everyday Fijians, save to invest in homes and places of businesses. And we mustn’t lose sight of this.
Ladies and Gentlemen,
While the real estate industry has endured its own share of challenges, it is important to note that the Ministry and REALB have been working collaboratively on a number of key projects. One priority is the review of the Real Estate Agents Act 2006. The review is set to bring about positive reforms in the industry and strengthen professionalism and transparency.
Ladies and Gentlemen,
Continuing professional development is a vital component for agents and salespersons. I encourage you all to participate and keep yourselves abreast with the latest innovations and developments in the real estate sector. Soon, REALB will be introducing educational programmes to agents and salespersons to ensure that they have acquired basic knowledge and understanding when dealing with their clients. This is to ensure that a minimum standard is achieved by an applicant before license is granted.
Ladies and Gentlemen,
Before the crisis, REALB was moving toward digitising processes and creating digitally enabled services for agents, salespersons, and buyers. This financial year, REALB has been allocated funds to develop a database of real estate agents and salespersons for the whole country. Through this database, stakeholders will have information on the licensed real estate agents and salespersons, including any adverse reports against them. This will be a public database; it will create transparency and confidence in individuals who wish to deal with individual agents.
As the Ministry responsible for consumer protection, I encourage you all to work together as an industry. To achieve this, you have to be familiar with the rules, regulations and procedures pertaining to property transactions and ensuring that consumer’ rights are protected. Competition is of course good for the market but only if it’s healthy and in good spirit.
The most effective competitive environments recognise the value of the journey, rather than just the end goal. The notion of “whatever it takes” leads to all sorts of bad decisions and unethical practices. So, if real estate as a sector is equitable – its contribution to the economy.
Ladies and Gentlemen,
During the course of the day, you have a number of experienced speakers, who will present various opportunities to rise above this pandemic. I encourage you all to come together and develop a few clear outcomes from this Seminar, which
REALB can present to the Ministry for consideration in our policies.
With those few words, I declare the 2021 National Real Estate Agents Conference open.
Vinaka Vakalevu, Thank you!