+675 74700243

Featured Property Guides

Recent Property Guides

Tourism in Papua New Guinea
Tourism in Papua New Guinea
October 19, 2021, 2:07 a.m.
Advice
Lifestyle
Gyms In Papua New Guinea
Gyms In Papua New Guinea
October 19, 2021, 2:04 a.m.
Advice
Lifestyle
Social Clubs In Papua New Guinea
Social Clubs In Papua New Guinea
October 19, 2021, 1:56 a.m.
Advice
Lifestyle

Industry Reports

High End Housing Demand Continues to Drop
High End Housing Demand Continues to Drop
June 23, 2022, 6:05 a.m.
News
Industry Reports
We are fast moving into 2016 and it is interesting to note a stall in the demand for quality residential properties, in what is being called a ‘mum and dad’ market.Despite efforts to offer more housing to the market, demand for high-end housing in Papua New Guinea remained relatively low for the last five years.According to Berkeley Capital’s sales manager, Douglas Norris, the types of residential properties being built from 2010-2015 only targeted the multinational company-based residential market, more specifically to house expatriate workers rather than catering to average citizens.“The high end products being built meant that their selling prices within those periods were extremely high and out of reach for the average family in Port Moresby to afford.  Affordable housing demand will still remain high until such times when more people begin to own their own homes. But local demand for high end quality properties has dropped,” Mr Norris said.However, the demand is also reliant on the continuance of major impact projects that attract expatriate workers to the country. With the advancement of new projects like the Wafi-Golpu Advanced Exploration Project, Frieda River Project and now the Papua LNG Project, more expatriate workers will have to come into the country. This means market demand for high end properties will start to increase again.He said Berkeley’s objective, as a property developer, was to show the market in PNG that anyone on any budget can build quality properties, and not the stick homes seen everywhere, at affordable prices. Mr Norris said the company had delivered that promise, and that had resulted in a runaway success on the sales front.Meanwhile, the real estate market demand and supply trend for this year (2016) as well as the coming years would depend entirely on the Government, which means if the government can deliver enough vacant land for property developments, then the demand for residential properties will remain.However, if the government can’t release large chunks of residential allotments, then we expect that the demand will be short lived in the “mum and dad” market.The important thing is to find a balance that should not allow demand to get to that level; and a controlled release through PPE would ensure that does not happen and the market remains stable. As Mr Norris highlighted, some of the properties being built in Port Moresby at the moment are of such a poor standard that many doubt the properties will still be standing in five years time.“We encourage potential buyers to do due diligence on the developers and make sure they will deliver quality at affordable prices,” Mr Norris said.Berkeley Capital is currently working on 48 houses at the recently launched Gobuta Street Estate at Tokarara in Port Moresby. The company is looking at expanding into other sites in Port Moresby and Lae.
24751 views
Affordable Housing Supply and Demand Trend in Port Moresby
Affordable Housing Supply and Demand Trend in Port Moresby
June 23, 2022, 6:06 a.m.
News
Industry Reports
Market demand for low-end residential housing in Port Moresby remains high despite efforts to make available more affordable houses to meet the increasing demand.While the demand for high-end housing lessened after the completion of the PNG LNG construction phase last year (2014), the limited supply of medium and low end housing cannot adequately cater for the increasing demand from home buyers who are eyeing more affordable housing, thereby widening the housing supply and demand gap in the real estate market.This trend has resulted in the prices to remain unchanged for the lower end houses in the city.According to Khor Eng Hock & Sons (PNG) Ltd general manager Phil Ho, there are currently huge shortages in the affordable low and medium housing, especially affordable housing that is below K250 000.“But there is an abundant supply of high end housing in Port Moresby. Demand for high end housing in good and secured locations is still high, especially the newer units and those close to main amenities,” Mr Ho said.While this situation is ongoing, the challenge is now with the real estate developers to develop and make available more affordable housing to suit the market demand and customer tastes. It is expected that the general decline in the demand for high end housing may possibly force property owners to lower the selling prices and rental rates of some of their residential properties. Rental rates and prices for medium to low end houses will remain unchanged or will slightly increase following the market demand.The signs are already showing. Some high end units in Down Town, Boroko, Gordon area and Waigani that were previously leasing for K350 000-K700 000, or renting at K4000-K6000 per week, are now leasing and renting at K250 000-K550 000 and K1000-K4000 per week, respectively.It is expected that housing prices and rental rates will continue to drop as more and more people start to develop and manage their own houses through the Government’s housing initiatives.
18675 views
East New Britain: The Fastest Growing Province in PNG
East New Britain: The Fastest Growing Province in PNG
June 23, 2022, 6:06 a.m.
News
Industry Reports
At the launch of several large projects in the Southern Highlands Province, PNG’s Prime Minister Peter O’Neill said that the “winds of change are coming” to some of the Nation’s most remote districts. In a speech to people in both Kagua and Nipa, he emphasised the dramatic growth rate of PNG’s economy which is driven by new projects and housing developments not only in Port of Moresby, the main capital, but also in distant suburbs which are recently experiencing incredible growth such as East New Britain, the fastest growing province in PNG.He also talked about the billions of Kina in various trust accounts and the projects they are funding, though the funds need to be managed better. East New Britain was previously devastated by volcanic activity in 1994, destroying 80% of the buildings in Rabaul, which was the local capital at the time. Currently, there are plans to focus on reviving the old business district in Rabaul, starting with the old market area. Ekonia Walom, the new town manager, talked about plans currently in place to rapidly bring much-needed development. He spoke of plans to establish a new cheque account and a new accounting system. The expectation is that this will strengthen the administration and improve accountability. From Volcanic Destruction to Fastest Growing Province in PNGGiven how devastating the volcanic activity in 1994 was for East New Britain, impressive development has already occurred. A high number of development applications are being reviewed by the East New Britain Physical Planning Board. ENB’s new capital of Kokopo  is now the fastest growing town in the country and the trend seems to be constant as about 95% of the applications were for projects in Kokopo. These projects include The Gazelle International Hotel, a service station, the Gazelle Restoration Authority, the Kokopo Sports Stadium, and a new headquarters for Kokopo/Vunamami LLG. Housing Projects and Touristic DestinationThomas ToBunbun, chairman of the East New Britain Chapter of the Communal Land Development Ltd., talked about the mix of urban and rural businesses in Kokopo and how it has become a tourist destination. Tourism has gone a long way towards supporting development. Connecting Kokopo to the provincial Tokua airport has helped support business and tourism.The additional development has helped to increase local demand in the construction industry, which has also been good for the local economy and fot the growing province in PNG. This demand is in the form of both commercial and residential developments.New residential estates include, but are not limited to Tibur, Kenabot, and Takubar. The New Guinea Islands Historical Society (NGIHS) founder Gideon Kakabin talked about the Warangoi area as another highly desirable location. It has a rural character, yet also has easy access to the local capital of Kokopo via well-developed roads.If you prefer cooler weather, Toma is a potentially desirable destination. People seeking affordable housing and willing to commute can check areas on the outskirts of town or beyond. Those areas tend to have lower prices, yet are still within reach of the in town amenities. Mr. Kakabin indicated that the predominant housing stock in the growing province consists of three-bedroom stilt houses. They are typically made of timbers, but have an iron roof and wood floors. More recently, brick is becoming more popular.Because of the low crime rates and incomparable natural beauty of this province of small islands, many people consider it to be an ideal place to live. It has a great climate and incredible views in unique terrain. The limited number of tribal groups in the area helps keep friction at a minimum. For many people, it is a quiet and peaceable area.To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.
20469 views
PNG Real Estate Market Forecast for 2015
PNG Real Estate Market Forecast for 2015
June 23, 2022, 6:06 a.m.
News
Industry Reports
2014 saw continued prices increase in PNG real estate, causing concern among Papua New Guineans who feel that affordability is at an all-time low.Moving into 2015, there are range of government initiatives aimed at delivering affordable housing to Papua New Guineans combined with a number of public and private sector projects which will continue to bolster PNG’s economic growth. What result will these factors have on the property market? Will 2015 be the year of the affordable home for the average Papua New Guinean?To answer these questions, Hausples.com.pg interviewed several major PNG real estate agents to garner their views on the market forecast for 2015. Read on to find out more. Hypothesis One: Drop in PricesAccording to Century 21 Siule Real Estate’s Christian Arek, this year will see a drop in the real estate market.“I would say the real estate market would be dropping this year… [It] will continue to drop a bit initially and then eventually level off” predicted Arek.This is great news for the bulk of Papua New Guineans who are renting as this means a wider range of rentals that will fall within their budgets. From recent trends and surveys, it appears that high quality houses will still be able to be leased at a reasonably steady rental price while ordinary properties will be the most affected by price fluctuation.“[The market drop] presents a lot of options for tenants in the rental market because they have more to choose from in terms of budgets. Moreover, landlords are more willing to negotiate renting costs.” added Arek.As for those who are planning to sell their property this year, Arek stated that it’s uncertain as to what sellers should anticipate. Definitely buyers will be more motivated to purchase a house relying on the First Home Ownership Loan Scheme which increases the possibilities of making a big and important investment. Moreover, it seems that the Government is making steps toward a new project to give away Free Land Titles to ordinary PNG citizens which will give them a security to take a loan. However, ultimately sellers make the decision about whether to sell at a particular price so the market will once again be largely in their hands.DAC Real Estate’s property manager, James Beangke also anticipates that the real estate market will decline in 2015.“Generally speaking, the Government has settled [real estate] regulations and taxes but considering the ongoing PNG LNG Project, there will be a lot of people who will be able to spend in the market. Hopefully, this drop will pick up after March,” stated Beangke.In particular new affordable housing projects such as Duran Farm and Edai Town will slowly release large amounts of quality affordable housing onto the market at reasonable prices. This increased supply should mean price declines and relative bargains for purchasers. Hypothesis Two: Increase in PricesOn the other hand, LJ Hooker’s Gemma Mavo forecasted that real estate market prices will increase this year. Mavo, however, stated that this will only happen if there’s increased competition.“My view is that real estate prices will at best remain flat over 2015. However, I believe that it’s more likely that due to the various government initiatives and continued strength of the economy, competition will increase and this will have a tendency to increase both rental and sale prices”Mavo points out increased prices may particularly apply to properties for sale as strong rental demand will mean better returns for investors and therefore higher rental yields and prices.——————- With more real estate companies springing up, as well as the introduction of the First Home Ownership Loan Scheme and Free PNG Land Title Giveaway Trial, 2015 will certainly be an interesting for Papua New Guineans and might represent the best opportunity yet for ordinary citizens to secure a home. Stay informed about the latest news and the first home ownership loan scheme! To receive news and updates about Free Land Titles initiative and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter.
18675 views
Nadzab: The Upcoming Airport City
Nadzab: The Upcoming Airport City
June 23, 2022, 6:07 a.m.
News
Industry Reports
Papua New Guinea’s economy has been growing consecutively for ten years providing the entire country with new housing projects, roads development and better access to critical infrastructure such as power. As of today this positive trend seems likely to continue with the development of a new and much bigger international Airport at Nadzab near Lae.  The new Nadzab international airport will dramatically increase PNG’s international exposure and will effectively become the new ‘Airport City’ of Papua New Guinea. The announcement of the new airport came directly from the Minister for Public Enterprises and State Investments Ben Micah whose goal is to make Nadzab an international airport by the end of 2016. The first flight connections will directly link Nadzab to Australia and Japan by the second quarter of 2016 making Nazdab an important departure point for Papua New Guineans travelling abroad. The Minister also announced that the project also aims to capture even more international traffic and as such is negotiating with the Chinese Government to have direct flights from Nadzab and Port Moresby airports to Beijing, China. In addition, Mr. Micah announced the construction of a highway to link Lae with Nadzab. Considering Nadzab is only 42 Km from Lae, the project will provide a four lane highway to be completed by China Railway International by the end of 2017. This will definitely ease the connection between the two cities who will mutually benefit from the highway and will also allow the transportation of materials from Lae to the airport. Mr. Micah added that with the construction of the railway from Lae to Ramu Valley for the transportation of containers and additional shipments, the plan is to transform Lae into a port city and industrial hub for moving materials to nearby Nadzab. It seems that major changes will continue to occur over the next few years changing the perception of Papua New Guinea and giving to the country an international presence thanks to this fantastic new initiative. Not only will this project allow for increased access to Asia for Papua New Guineans (and vice versa for Asians travelling to PNG), it will also spur new housing projects, jobs and infrastructure all of which is needed to continue Papua New Guinea’s economic and social growth. Keep reading the Hausples.com.pg New Blog to stay up to date with PNG real estate and housing markets.
26374 views
Government Cracks Down on PNG Landlords
How to Estimate PNG Real Estate Prices
How to Estimate PNG Real Estate Prices
June 23, 2022, 6:23 a.m.
News
Advice
Industry Reports
“How much will the property sell for?”Unsurprisingly, this is the most common question both a buyer and a seller ask!From the perspective of a buyer, there’s no doubt that it is difficult to gauge PNG real estate prices, particularly in the tightly held cities of Port Moresby and Lae.  The competition for good houses, apartments and land is fierce and many of them are selling at prices far above the advertised estimated price range. This is, quite naturally, making buyers feel cynical and frustrated. Buying a home is like no other purchase you’ve made in your life.  Homes are not identical, they don’t come with a return policy and they rarely have with a fixed price tag.  A house may viewed as being worth far more to a person who wants to live in the same street as their family, who wants their children to be able to walk to a particular school or who has a business just five minutes drive away.  All sorts of things influence the value of a real estate in the buyer’s mind. Speaking with a reputable PNG real estate agentWhen a real state agent is approached to sell a home, they are asked for their professional opinion regarding how much a reasonable person would pay for the property.  In order to provide the best possible answer to that question, the agent then researches similar properties in the area and what they have sold for.Unfortunately the Papua New Guinea real estate market has traditionally not been very transparent and there is very little clear data regarding prior sales. Experienced and professional PNG real estate agents will leverage their past sales data, experience and local knowledge to price properties correctly. By contrast, inexperienced real estate agents will be more likely to quote a seller an unrealistically high price, which may then negatively impact your chances of purchasing the property. For this reason, it is advisable to focus on properties that are being sold by reputable real estate agents that have been operating in the PNG, Port Moresby or Lae for some time. Take advantage of technologyWith the advent of new online real estate websites such Hausples.com.pg, more real estate sale prices are being published. Tools such as the Hausples ‘Sold Prices’ page can provide a handy reference to find similar properties to the one you are considering and will give some assistance in predicting the ultimate selling price. You should leverage these to your advantage and get the benefit of adopting technology early. Speak to your bankIt might seem odd, but banks are often the best source of real estate information. As banks lend large sums of money to real estate buyers, they regularly value homes and other PNG real estate to ensure there is sufficient equity to cover the amount lent to customers.We suggest approaching your bank regarding your real estate purchase and ask them to provide a pre-approval or full approval for a loan for the property. Part of the bank’s approval process with require the bank to value to the home or asset. You can then use the bank’s valuation as a rough guide for the property. You should be aware however, that there may be cost associated with processing the loan application. As PNG’s largest bank, we recommend speaking with the BSP (Bank of South Pacific) if you choose to apply for a loan approval. The bottom lineDespite the above, there is no science to the emotion of buying a house or apartment and the value of an established home is not purely based on prior sales data.  Logic often flies out the door when dealing with an extremely buoyant and under-supplied real estate market such as that in PNG. This will often cause a buyer to make an offer on a home that is far above what science and logic dictates it would probably sell for.Ultimately, the seller of the home is entitled to get the best possible price for their property – regardless of what price point has been advertised.  There is absolutely no compulsion for a seller to sell at the advertised price.  And this is understandably frustrating for buyers. The best advice is to think carefully about how much you’re prepared to spend and – hard as it is to put the emotion aside – stick to your budget.The current PNG real estate climate is certainly throwing up a fair share of homes being sold for far above the advertised price range. But take heart if you’re a buyer. Properties are continually coming on to the market and you’re sure to find one that suits you emotionally and financially.
19539 views

12
12
backnext