PNG property portal Hausples.com.pg has released the findings of its Real Estate Consumer Sentiment Survey, which indicates the country’s housing market is experiencing rapid growth.
The survey was distributed to over 2,000 respondents in both PNG and globally and sheds light on crucial information vital for property industry professionals such as: Government authorities, developers, investors, insurers, financial institutions, personal home hunters, and real estate agents.
One of the survey’s key findings was linked to home ownership among Papua New Guineans, with over half of respondents (55%) stating an intention to purchase over the next 12 months.
Hausples CEO Mathew Care told PPW that the survey confirms “Papua New Guinea’s housing market is experiencing rapid growth as the country transitions toward people moving from rural to urban areas, however the market remains severely supply constrained.”
“Survey results show that despite high prices even by global standards (with some expat rentals exceeding those of even New York City) most people (62 per cent) believe that now is an opportune time to purchase a property. This optimism is further underpinned by a genuine intention to purchase, with 55 per cent of people intending to buy a home within the 12 months.”
Despite this, Care states that many people who want housing still do not have access.
“PNG’s urbanisation rate is incredibly low by global standards at just 12 per cent and homelessness is a major issue with 20 per cent of the population living urban centres,” he says. “When you consider that South-east Asia’s least urbanised countries are Cambodia at 23 per cent followed by Vietnam at 31 per cent, you can see just how acutely under-served PNG’s housing market is.”
Thankfully, relief is coming in the form of a range of Government and private sector developments which will rapidly increase supply.
“ Between 5,000 – 6,000 new affordable and middle income homes will be built in Port Moresby over the next 12 months,” Care said. “Thankfully this accords with our survey results which show that 80 per cent of people prefer to live in Port Moresby in preference to other cities.”
According to Care, this increased building will also continue into the future.
“A major flow of over 50,000 new properties will come onto the market over the next 2 to 3 years. This includes public sector joint ventures and private developments”.
“It’s very encouraging to see that ordinary Papua New Guineans are now actively intent on home ownership.” Care concludes. “Our results indicate that people have a genuine intention to purchase a home and are also well aware of the financial commitments involved with over 80 per cent of people indicating that they would contribute a deposit of 10 per cent or more”.