Housing sector

challenges in the housing sector | PNG Loop

According to findings gathered through research by Dr Lindsay Kutan of the PNG National Research Institute, these challenges reflect the absence of a comprehensive national housing policy.

The report revealed that there is no clear direction from government and responsible housing agencies in providing adequate and affordable housing in urban areas.

Dr Kutan said that although the 1994 National Housing Policy has been under review since 2017, it has not been completed as the government has not provided funds for the regional consultation with key stakeholders.

About 97% of the land in PNG is traditionally held land and about 3% of that is titled state land.

In addition, titled land is rare or difficult to find and drives up the price of titled land. Adding the high cost of titled land to the cost of construction results in very high market prices for houses.

The Hausples survey (2022) also recalled that “the lack of developable land is undoubtedly one of the major problems” affecting the overall price of real estate.

Average weekly home rental prices in Port Moresby range from 633K to 4250K, which most low-income households in the city may not be able to afford.

Civil servants, who belong to the lowest salary scale, receive an annual gross salary of 8290 K, corresponding to approximately 159 K per week.

The Hausples survey (2022) indicated that there is strong demand for properties that cost 500K per week.

On average people pay between K500 and K3000 per week in rent

According to findings gathered through research by Dr Lindsay Kutan of the PNG National Research Institute, these challenges reflect the absence of a comprehensive national housing policy.

The report revealed that there is no clear direction from government and responsible housing agencies in providing adequate and affordable housing in urban areas.

Dr Kutan said that although the 1994 National Housing Policy has been under review since 2017, it has not been completed as the government has not provided funds for the regional consultation with key stakeholders.

About 97% of the land in PNG is traditionally held land and about 3% of that is titled state land.
In addition, titled land is rare or difficult to find and drives up the price of titled land. Adding the high cost of titled land to the cost of construction results in very high market prices for houses.

The Hausples survey (2022) also recalled that “the lack of developable land is undoubtedly one of the major problems” affecting the overall price of real estate.

Average weekly home rental prices in Port Moresby range from 633K to 4250K, which most low-income households in the city may not be able to afford.

Civil servants, who belong to the lowest salary scale, receive an annual gross salary of 8290 K, corresponding to approximately 159 K per week.

The Hausples survey (2022) indicated that there is strong demand for properties that cost 500K per week.

On average, people pay between K500 and K3000 per week in rent.