Feb. 5, 2018, 3:47 p.m.
About the PNG rental market
Residents of Papua New Guinea will be unsurprised to hear that PNG properties for rent are the largest part of the real estate market. Unlike other countries in which real estate sales make-up the majority of activity, in PNG rental properties are where the bulk of transactions take place.
The primary reason for this lies in PNG’s unique land titles system which means that the vast majority of real estate is owned under customary title, meaning there are limited plots of freehold land for sale. For a detailed explanation of the PNG land tenure system please visit our Port Moresby real estate page.
As a result of the huge demand for rental properties, real estate agents maintain large teams dedicated to servicing landlords and tenants.
Types of rental properties
The rental market can be divided into residential, commercial and land rentals.
The residential market includes apartments, houses, townhouses, bedsitters (which are single room apartments similar to a studio apartment) and shared accommodation in which individual rooms are rented with shared bathrooms and other amenities.
Generally, the cheapest rentals are 1 bedroom spaces in bedsitters (shared accommodation) which will rent for K150+ per week and the landlords typically prefer ladies. While 2 bedroom apartments and houses start at K500 per week and 3 bedroom apartments range from approximately K800 per week upwards. These prices are the lowest end of the available properties and will usually be found in less affluent areas such as Port Moresby’s Gerehu, Badili and Hohola.
Unfortunately, the majority of rental properties in the major cities of Port Moresby and Lae are quite highly priced with approximately 60% of properties currently available on Hausples costing between than K1000 – K3000 per week. These properties are generally 2 to 3 bedroom and are located within a secure compound or apartment building with around the clock security. Rental properties of this type are available in suburbs such as East Boroko, Gordons and Korobosea.
For expatriates, corporate rentals and executives, there are a range of properties costing K3,000 per week and ranging up to K7,000+ per week. These properties will all feature 24 / 7 security guards, full back-up electricity facilities, communal BBQ areas and most likely a pool. These houses and apartments are usually located in the best areas of Port Moresby such as the POM CBD (known as Town), Waigaini, Gordons and Ela Beach.
PNG commercial real estate rentals are a relatively small segment of the market with under 50 commercial properties presently listed on Hausples.com.pg.
The majority of commercial rentals are for warehouses and light commercial spaces. These properties are located within the major industrial centres in Gordons, 6 Mile and Badili. Whilst office space, commercial and retail (for example shops) rentals are commonly situated in Town(the Port Moresby CBD), 2 Mile and Boroko. Unfortunately PNG real estate agents do not tend to list monthly rental pricing for commercial property and as such many properties are listed as ‘Price On Application’.
PNG land for rent is extremely limited. This is clearly demonstrated by a ratio of land rentals to land sales of 10 to 1 on the Hausples.com.pg website. Land for rent is generally limited to storage space. Undoubtedly there is a large amount of customary land which is rented for various purposes in rural areas for purposes such as agriculture, however this market is informal and therefore not listed on Hausples.com.pg. Hence, those searching for land to rent should also consider purchasing land
Searching for PNG properties for rent
Hausples.com.pg recognises the importance of rental properties in PNG and as such our website is focussed on making it easy to search for and inquire about a rental home, land or commercial property. The site presently lists in excess of 500 homes for rent from over 20 real estate agents located in the major cities of Port Moresby and Lae.