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Port Moresby property values soar, developments under way

By Ancilla Wrakuale

PORT MORESBY, Papua New Guinea (The National, Aug. 29, 2011) – Property investment in Port Moresby is going through a phenomenal growth in the prices of properties over the past seven years.

Nasfund joint-Chief Executive Officer Rod Mitchell made the observation last week while presenting a report on Nasfund during the 7th Pacific Provident Fund and social security chief executive officers forum in Port Moresby.

He said Port Moresby was playing catch-up because most of the residential and commercial properties were old, constructed up to four decades ago. He attributed the increased growth to the increase in demand for properties.

[PIR editor’s note: Port Moresby’s real estate market in 200 reached new highs in prices, particularly for housing that was being rented. Prices were attributed to the limited availability of housing, along with the availability of actual land on which to build.]

The Liquefied Natural Gas (LNG) project, he said, related industry spin-offs, other resource explorations and projects meant a huge demand for rental and commercial rents.

He gave as an example the recent move by Nasfund to increase its property investment.

"What we seeing is evidence of an over-heating Port Moresby property market, especially in residential, but also in commercial and hotel accommodation", Mitchell said. "The banks in PNG have shown a very responsible attitude to the current property boom, ensuring lower interest loan to valuation ratios on any development."

Some recently completed Nasfund constructions in Port Moresby include the IPA Haus, Datec Building, Ravilien Haus, ANZ Haus, Solwara apartments and a factory located at Konedobu. Current constructions included the BSP Haus comprising seven levels to be built at Harbour City in which Nasfund has 34 percent ownership. The reconstruction of the Burns Philip Haus was also among other current construction by Nasfund.

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