City realty prices to soar

Business, Main Stories


THE real estate industry in Port Moresby is projected to boom with high rental and purchasing prices.
A survey indicated that in light of the LNG project and economic growth, real estate prices are expected to escalate as of this year.
Jonathan Gouy, an economic consultant to the National Government during the PNG Update seminar last week, said demand forces had been the factor behind the industry to an extent where ordinary tenants and buyers could not be able to afford.
Mr Gouy said from the 340 commercial and residential properties that had been surveyed, it was found to be very expensive with the highest price for a property at K3.7 million in zone A which comprised of town, Paga Hill, Touaguba Hill, Konedobu, Ela Beach and 2-Mile Hill.
To buy a house, apartment or unit at Zone A, an average price is K2.1 million and cheapest at K0.9 million.
The average rental price for these areas is K200,000 per year, most expensive K520,000 and the cheapest is K42,000.
Mr Gouy said under Zone B, areas around Gordon, Boroko, Korobosea, 6-Mile, Hohola, Waigani, Koki and Badili, an average price to buy a house is K720,000, most expensive at K3.8 million and cheapest at K160,000.
The cheapest for rent is at K35,000 year while most expensive is K310,000.
To buy a house around Zone C: Gerehu, Kila Kila, 7-Mile, 8-Mile, 9-Mile, Tokarara, Rainbow, Ensisi Valley and Morata, the most expensive is at K2.2 million while cheapest is at K110,000.
To rent, the cheapest is at K10,000 year while the most expensive is at K85,000.
Mr Goys said the high prices were due to high demands and low supply making ordinary people to fend for themselves at squatter settlements. 
Due to the high property prices, city dwellers are faced with homelessness, financial stress and upward pressure on prices of domestic goods and encourages property speculation, rather than productive investment and, at the same time, discourages investment by locals and foreigners
He said it needed considerable efforts from price regulators to control prices.