Property owners, renters and investors will have more reasons to join the real estate market in Papua New Guinea. Recent forecasts reveal that the real estate industry is going up amidst some challenges. Demand for residential and commercial properties remains strong in the country.
Real Estate Supply and Demand on the Rise
Industry experts suggested that supply and demand for real estate in Papua New Guinea is still strong despite fall in rental costs. Brian Hull, Executive Chairman of Century 21 Siule Real Estate in Port Moresby, noted that rents went down by almost 30% for high-end properties and 10-20% for mid-levels. There was almost no change for low-end structures. The decreasing rental costs plus the increase in the number of properties attracts prospective tenants and buyers as a result.
The increasing demand for commercial property in Port Moresby and Lae is one of the primary causes. These areas experienced a sharp rise in construction activity for commercial purposes. Despite the fall in demand for executive rentals, strong investor confidence and the anticipation of new infrastructure projects still prompt developers to build more commercial properties.
Demand for residential property continues to grow, but not without some challenges. More people are still looking for affordable housing in Port Moresby, thus leading to a shortage of supply in medium and low-end properties. High-end properties are abundant, but they are not that attractive to the market because of the exorbitant price.
To address these problems, real estate developers are constructing more affordable properties to cater to those with modest means. Owners of high-end houses are also lowering the selling or leasing price to better accommodate middle to low income earners. These moves will be beneficial for prospective homebuyers, renters and investors.
Properties in Papua New Guinea will continue to be in demand, as selling prices, as well as measures of the government and property developers, are in the consumers’ favor. With these findings, now may be the best time to buy, rent or lease properties in the country.