Land scarcity singled out


LAND availability is the major factor causing high costs of property development, says Real Estate Industry Association president Mike Quinn.
Quinn told The National that 95 per cent of land was traditionally-owned, and this created inflated prices on land available under State leases. “In PNG, there is one significant factor that continues to exert upward pressure on property prices – and that is land availability,” Quinn said.
“With 95 per cent of the PNG land mass held under traditional ownership, the ability to secure and develop land is stifled.
“And it creates inflated values on the alienated State leasehold land available with secure mortgagable tenure.”
Quinn said the Integrated Land Group system was an ideal way to access land while ensuring that ownership remained with the traditional landowners.
Quinn hopes the government, through the new political leadership in the Land Department, will use this system for the benefit of the industry and the people.
“Creating a source of land able to be purchased, mortgaged and developed is the greatest hurdle that we experience currently,” Quinn said.
“Increased availability of land will require the development of traditional land that currently remains largely unproductive.”