Fiji holiday homes are still hot properties
By Anne Gibson
Sales of the properties at the Fiji Beach Resort and Spa have been strong despite the coup.
Auckland developer Neville Mahon, who is involved in real estate projects worth $600 million in Fiji, says the military coup slowed his sales inquiries but business had now recovered.
Mahon, head of Greenlane-based Lausanne Project Management, said sales ground to a halt in December and January but were now strong again.
"It surprised me that it's actually bounced back a lot faster than I imagined," Mahon said.
"The coup did have an effect in December and January when inquiries went completely dead."
Fiji's Land Transfer Office stopped transferring titles but Mahon said people's fears about the coup had been the real reason for the downturn.
Mahon is one of New Zealand's most ambitious developers. He is developing the Fiji Resort & Spa managed by Hilton on Denarau Island, a project he said would be worth $300 million when finished.
Stage one of the resort with 240 rooms and 150 villas is finished. Stage two will bring an extra 91 villas and 146 rooms. A third stage is also planned for the site, which is leased for 90 years.
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Buyers came mainly from Auckland and Christchurch, Mahon said, but Australians have also bought. Properties at the resort are selling for $460,000 to $4 million. As well as his Auckland office, Mahon has a sales office at Denarau and a new office opening in Nadi.
He has a second large development on Nananu Island, which he owns. Mahon said that would also be worth around $300 million when finished. He is developing 23 villas and investors have bought shared ownership from $240,000 each.
Nananu is 35 minutes by air from Denarau Island and, unlike the Hilton resort, land there is freehold.
The island is 10 minutes by boat from Raki Raki on the mainland of Viti Levu.
Mahon took issue with a report late last year which said international hotel operator General Hotel Management had pulled out of operating the Nananu development - which was to be called called The Chedi Resort - because of political issues.
"We decided to end the relationship and we're talking to two - possibly three - hoteliers and we'll soon sign another international hotel management company with closer links to the region," Mahon said.
Developing in Fiji was difficult as buying land and getting approvals for development and construction work was not easy, he said. Nananu Island's sections, which range from 2300sq m to 13,400sq m are selling for an average $700,000 to $800,000. Smaller sections are going for $400,000 but Mahon is asking more than $1 million for larger pieces of land.
He bought the island about four years ago from an heir to the Procter & Gamble fortune.
Mahon has funding from Strategic Finance for his Denarau project.
Kerry Finnigan, Strategic's chief executive, said the December coup was of concern, particularly when the Land Transfer Office put a freeze on issuing titles. But overall the political move had little effect on Mahon's project.
Fiji holiday homes are still hot properties - 21 Feb 2007 - Property investment news - NZ Herald
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