Flemming argues for affordable housing cost

HOUSING estates are expected to be around the K400,000 range with developments underway, according to Bank of South Pacific chief executive Robin Fleming (pictured).
Fleming explained to The National how the bank’s first-home ownership scheme (FHOS) was aligned with these developments by being a “long-term product”.
He was responding to questions on how the real estate market price did not allow its targeted customers to use the scheme.
“Land and house development are being pitched at an affordable price.  There are housing estates where the price is on or around the K400,000 mark,” he said.
“We expect more housing around that price will be available as developments such as Duran Farm are completed.
“New land developments do include all the appropriate services such as water, sewerage, power, roads, etcetera.
“Builders and developers must be on an approved panel.  This is to ensure that builders have the appropriate experience and qualifications and that they use quality materials and quality construction methods.
“This is to ensure that the house with the appropriate care and attention from the owner, will last many years.
“Overall, we believe the FHOS loan product has been quite popular and successful to date.  This is a long-term product and as more land is made available for affordable housing not only around Port Moresby but across all parts of PNG, we expect to see average working class Papua New Guineans purchase their own house.
“In the long run, some may retain that house until they pass and have ownership of the property transferred to their children.  Others may sell their house and purchase something larger, while others still may sell their house and use their equity for other purposes.
“Whatever they do, it is likely that their wealth will increase over time.”