Govt urged to make housing land available

THE government has been urged to promote private-public partnerships instead of pushing price regulation in the real estate industry.
Brian Hull, the executive chairman of real estate firm Century 21, said that the real estate market was “self-regulating” in terms of pricing and that the government should facilitate more housing through partnership businesses.
“There is absolutely no need for government interference as the industry self-regulates. Previously, there was a shortage of supply and the price had gone up,” he said.
“At the moment in Port Moresby and Lae, and I think Mt Hagen and Rabaul, there is an oversupply of commercial and residential real estate. And the prices have dropped in some cases by almost 60 per cent.
“The level of income should be corrected by the state of the economy and middle class Papua New Guineans are increasingly being employed by companies looking into their housing needs.
“So the market should be able to cater for this price range that is currently available.
“The issue is that there has to be more land available to develop and more players in terms of private-public partnership works.”
Port Moresby Chamber of Commerce and Industry acting president Rio Fiocco agreed that there is a need for more land to be made available to private developers.
“If the government were to provide more land with proper titles, that could then be sold to the private sector then more houses could be built,” he said.
“The more houses that are built through this will result in  a bigger supply and therefore prices will come down and also make it more affordable” Fiocco said.
“The key is that there is not enough land that is available to develop by the private sector.”
Deputy Prime Minister and Treasurer Charles Abel said recently the government should conduct a review of the rental market starting in Port Moresby.