Construction & Real Estate
From The Report: Papua New Guinea 2020
View in Online Reader

The government has demonstrated notable early enthusiasm to boost the ease and transparency of land ownership processes, which should stimulate activity in the construction sector. Recent years have seen the industry hindered by vulnerability to foreign currency shortages, limited availability of land for development, a lack of transparency and insufficient human capital. Ongoing efforts to improve road connectivity and affordable housing supply are also poised to provide steady demand for construction around urban areas, before expanding outwards into rural communities. Housing availability is indeed a pressing issue, especially as real estate prices have been driven up by the limited availability of land and high cost of construction. The government has prioritised this issue and shown its commitment to improving the supply of basic utilities to support developers and local communities. There is also potential for both affordable and high-end developments to be buoyed by large-scale extractives deals, which would increase demand for property and provide trickle-down benefits for the wider economy. This chapter contains an interview with Brian Hull, Executive Chairman, Century 21 Siule.

Articles from this Chapter

Overview

Focus on fundamentals: Efforts to improve road connectivity and large-scale extractive projects are set to boost building activity
OBG
plus

Papua New Guinea’s construction sector is closely tied to its extractive industries. This is in part due to the substantial contribution of extractives to the country’s economy, accounting for around 28% of GDP in 2019. The performance of extractives also dictates access to foreign exchange (forex), with the segment representing roughly 94% of exports that same year. PNG’s construction sector relies heavily on imported materials, thus access to forex is crucial to avoid project delays.…

Interview

Creating a framework: Brian Hull, Executive Chairman, Century 21 Siule, on taking the necessary steps to develop the real estate market
OBG
plus

Interview:Brian Hull What has been the impact of government policies on the local real estate sector? BRIAN HULL: The first homeowner scheme, which has been handed over to Bank South Pacific, has had a significant effect on the real estate market. Under this scheme, people can apply for a loan of up to PGK400,000 ($118,000) at 4% interest for 40 years, with the borrower putting up 10% equity. With the funds acquired, people can buy both land and house as a package, and the house may even…

Overview

Under one roof: Affordable developments and government programmes are facilitating homeownership to bridge the housing gap
OBG
plus

Boosting the supply of affordable housing is central to efforts aimed at improving the lives of citizens in Papua New Guinea. Housing availability has become an increasingly pressing issue in recent years, especially as real estate prices for both renters and buyers have been driven up by the limited availability of land for development and the high cost of construction. The government of Prime Minister James Marape has prioritised this issue, proposing legislation for strata land titles…

Analysis

Unlocked land: Reforms target formalising areas under customary ownership
OBG
plus

Accelerating land reform has been a key priority in enabling socio-economic progress in Papua New Guinea, and several development programmes have been put in place to this end. Since being elected in 2019, Prime Minister James Marape and his administration have placed a particular focus on mobilising large areas of customary land for development, while also emphasising the empowerment of customary landowners. LegalConsiderations Owing to PNG’s colonial history, the legal system…