Chinese eye Fiji properties

Sai's Comments:

• No doubt the illegal regime will be keenly eyeing this as a foreign exchange earner to prop up the Fiji economy.

• It is clear that the regime's existence rests largely on trying to keep the economy going, even to the point of bleeding the locals. This is evidenced by the desperate measures it has put in place which defies economic sense.

• Reducing the age of retirement to save money will have the opposite effect due to loss of key skills and expertise and the significant delay in reducing the resulting knowledge and productivity gap. It takes longer to make up the loss sustained as additional capabilities will be required and not just a straight replacement.

• Also on the revenue side, I would not be surprised the decision to regulate the radio and TV spectrum is a mask to sell them off to the highest bidder. In the same basket will be the attempt to open up unused land. The said thing about both these assets, is the cultural value they serve which may well not feature in the regime's calculation given its desperation for much needed revenue.

• Fees from drilling and exploration licenses is another revenue source that will increasingly be tapped as only foreign investors, no doubt partnering with regime supporters, will be able to afford. Fiji and its people should expect more of their natural resources being opened up to foreigners as the local cash cow (FNPF) dries up.

• Despite all these foreign money, there is bound to be a net loss to the Fiji economy as profits will be repatriated overseas, environmental impact will be borne locally (just ask the Africans on the Chinese mining impact) and minus the initial huge upfront outlay by government just to attract the investors in the first place.

• At least all these policies make it clear as day the life blood to the regime's existence - "the economy stupid".

• Chile in the days of the dictator Pinochet, employed the same approach managing to grow its economy under a repressive regime. Remember Voreqe's training days with the Chilean navy, but I doubt he had what was needed to absorb any of that!

• Therefore efforts to bring the regime down also need to be directed at negating the approach. Not to worry though as the regime, with its nonsensical economic policies, is already making a head start on it, even if it does not realise it.

December 23, 2009 - www.fijilive.com

China’s rich looking to purchase properties away from home have Fiji in their sights, according to Air Pacific’s representative in Asia.

“There are a lot of queries coming right now regarding property purchases in Fiji,” said Hong Kong-based Watson Seeto when asked about the opportunities for Fiji in mainland China especially with the Fiji government forging closer ties in the Orient.

“Land prices in Hong Kong are very high. So it’s really the people coming from China, they basically are asking about investment properties or holiday homes in Fiji.”

“So once I get enough queries and put together a data base I will be going to the Fiji Trade and Investment Board or the real estate agents in Fiji to try and generate that market.”

According to Seeto, there are currently tour packages for investors going into New Zealand and Australia to buy homes, which Fiji could tap into.

“They come in small groups of 10 to 15, but they have basically a couple of million dollars to spend per person,” he said.

“The Chinese market is the market we have not fully tapped. It’s the biggest market we know is going to be available to Fiji.”

China's super-rich usually purchase homes and luxury brand items in Hong Kong, one of the main financial centers of the Far East.

According to one real estate report, property prices in Hong Kong are booming in part because of mainland cash pouring into the city.

But these days, the prices are what is taking people's breath away and a modest apartment now can go for $30 million, reports CNN.

An apartment in Hong Kong, a 6,200-square-foot duplex, recently sold for a record $57 million.

The Expat Forum reports that this year, Hong Kong returned to its status as having one of the most expensive real estate sectors in the world, both for the commercial and residential real estate.

Prices are sky high due to the fact that there is very little property on the open market, and what is there will be squeezed up to crazy prices, it said.

Some properties within the centre of the business sector are going for something in the region of $4,000 a square foot, a massive increase on 10 years ago, it said.

Seeto is optimistic that given Air Pacific’s twice weekly direct flights between Nadi and Hong Kong, Fiji is in an ideal position to take advantage of China’s economic power.

“We’re the only guys that can land you in the South Pacific,” he said.

“When we first did our study we thought it was 60 per cent from UK and Europe on the Hong Kong flight, but that’s reversed in the last three months. It’s 60 per cent tourists from China to Fiji, the UK/Europe number has dropped.”

“Our partnership with Cathay Pacific also gives us the global reach – there are many opportunities there. We have a code-share in only one sector, which is the Nadi-Hong Kong route. We are talking to Hong Kong, hoping to open opportunities in other routes.”