Nadi Chamber of Commerce & Industry president Lawrence Kumar has urged government action to tackle a shortfall of between 15,000 and 20,000 affordable homes in Fiji, telling a National Budget 2026 consultation last week that high construction costs are locking many families out of home ownership. Kumar said the country’s comparatively steep building expenses are forcing many households into long-term renting, with rental prices also under pressure.
“The cost of construction in the country is relatively high,” Kumar said in the consultation interview, arguing this is a root cause of continued high rental demand. He echoed concerns raised by Nadi resident Bulou Lele Wilson that renting has become prohibitively expensive for many families and called for clearer regulation of the rental market. Kumar warned that some property owners are bypassing the Finance Minister’s rental freeze by carrying out renovations and reclassifying increases as improvements, effectively enabling higher rents without breaching the freeze.
As a novel proposal to boost supply rapidly and affordably, Kumar suggested government incentives to encourage the import and local deployment of container-style homes. He recommended making such units zero-rated for VAT and exempt from duty to attract private investors and developers who could bring these affordable housing options into Fiji. “Once those duties are zero rated and VAT is zero rated, people would definitely bring those affordable homes into the country and people would invest in this area,” he said.
Kumar framed the container-home idea as a private sector–driven solution that would complement public housing initiatives. He urged the government and private investors to explore alternative housing models and to ensure both land and housing units are priced within reach of lower-income families. The call aligns with mounting public concern over housing affordability as construction and living costs rise.
The comments come amid previous government assurances on affordable housing. In late December, Housing Minister Maciu Nalumisa said the ministry would prioritise cheaper lots and model homes on developing sites and noted a range of housing lot prices to suit different income groups. Kumar’s intervention shifts the debate from land pricing alone to construction methods and fiscal incentives that could reduce upfront costs for buyers and lower barriers for developers.
The proposals are likely to surface in Budget 2026 discussions, where incentives, tax settings and measures to relieve cost-of-living pressures are already under consideration. If adopted, zero-rating VAT and duties on container homes would require Cabinet and parliamentary approval and could prompt discussions with industry stakeholders on standards, financing and long-term affordability safeguards.
Kumar concluded that without complementary measures from both government and private sector — including regulatory oversight of rentals and creative building solutions — Fiji will continue to face a substantial gap in affordable housing that threatens to keep growing as living and construction costs outpace household incomes.
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