The real estate industry of Papua New Guinea has experienced significant growth parallel with the infrastructure boom from the LNG project. Top-end and medium range housing segments have undergone some contraction after the project completion. Low-end housing demand continues to rise due to increased urbanisation and while the government and businesses in the industry are working to address the issue of affordable housing, demand continues to outstrip supply.
The requirement for commercial properties are projected to sustain particularly in Port Moresby and Lae. However, a critical issue that needs to be addressed to faciliate development is the shortage of land. 97% of the land area in the country is under customary tenure, where much of this is undocumented. On the other hand, urban land, where available, is locked up in government leases.
Despite these challenges, the real estate landscape is changing. Urbanisation, demographic shifts, land ownership, sustainability, and the shifting financial ecosystem will all have major implications for real estate investment and development. They’re likely to increase the size of the real estate asset pool, yet alter the nature of investment opportunities and risks. Real estate players need to make sure they’re fit for the future and success will depend on having global networks, specialist expertise and innovation, cost management and scale, as well as people that suit your strategic objectives.