Island of Fiji expects good growth

It is only accessible twice a week, but the Fijian island of Koro is expecting to see annual capital appreciation of at least 30% over the next two years.

The price of land on the island, known for its sustainable development and low impact tourism, is increasing to such an extent that many plots are being bought as a short term investment.

'Land prices are rising and offering solid returns. Beachside lots are now rare but there are splendid views from many areas and pockets of land alongside the island's freshwater creeks,' said a spokesman for Fiji Real Estate. Land prices start at around £16,000 for a one acre plot with no facilities but road access.

'It really is an exciting place to consider investing in. Low prices and the explosive potential of Fiji property make it an excellent short-term investment. Fiji property is expected to grow in value by around 15-20% and possibly even by as much as 30% depending on where you buy,' said Liam Bailey of David Stanley Redfern.

'Koro is one of the most unique destinations in the Pacific, combining unrivalled natural beauty with sustainable development and low-impact tourism,' he added.

It is certainly remote, and is the sixth largest island in Fiji. It is only accessible once a week by plane and twice a week by ferry. It is known as the most fertile island in Fiji, boasting large plantations, thriving tropical forests and world renowned bird life. Planting Kava and selling copra make up the main economic activities for the villagers and to the people of Nacamaki Village, the turtles are their sacred ancestral god.

As well as land there is a new development of off-plan studios. The 450 acre resort is an ideal buy-to-let investment as demand from tourists means rental yields can be expected to grow from the current 6 to 8% to around 10% by 2010, and annual capital appreciation is expected to be at least 30% and could be as much as 50 percent over the next two years, according to Bailey.

Fiji as a holiday destination is popular with tourists from Australia and the country's airline, Air Pacific, is to upgrade its services adding new destinations and new aircraft to its fleet. It has also promised not to withdraw from any of its routes because of increased fuel prices.

Smaller airline, Pacific Blue, which flies from Australia and New Zealand, is already having a major impact on the economy after increasing its Fiji services from 12 to 24 flights per week.

BOOKMARK THIS PAGE (What is this?)