Group predicts more disruption to industry

Business

A DELAY or pause in the real estate industry is expected due to the impacts of the Covid-19, according to an industry group.
According to Hausples, a real estate portal assessment released last week, the more Covid-19 persists, the more leasing may be delayed.
“Since the pandemic, traditional offices remain empty while a distinctively low demand emanates across new offices,” it said.
“However, most offices are tied to a lease, so while they may be empty, rents are still being paid.
“As office tenants continue to review their business continuity plans amidst this great uncertainty, one cannot expect a downward trend within the strands of commercial rent just yet, directed by an unshakable underlying commercial market.
“Many companies by now will realise that they are able to adapt to remote working.
“This suggests an increase in what is known as satellite offices like Hausples Ltd, with more people appearing in flexible workspaces, as companies and business houses distance themselves from long-term leases. With many more companies laying off a good number of their employees, one can expect to come across a significant amount of empty office spaces.”
Hausples noted that besides working from home due to social distancing measures and the state of emergency, PNG could soon witness the birth of co-working spaces, as far as the need for a private and flexible workspace goes.
“Rising up to this challenge, Pacific Palms Property is currently offering these services at their Harbourside West Complex (in Port Moresby),” it said.
“A typical scene in a co-working space will entail inner workings.”