Local builder seeks to tame rental costs

Business, Normal

The National, Tuesday July 16th, 2013


LOCAL builder Amazon Realty Ltd has invested significantly in a housing project to combat high rental prices, its managing director Sig Nordal says.

He told The National yesterday the project would be completed in November next year.

Nordal said it was designed to solve the housing issues in the country, including soaring rental costs. 

Under the housing project, all components for a house are fabricated, including the wall, roof and floor sections. 

The material used included light steel and timber.

Nordal said: “The high rental costs are paralysing the lives of individuals in Papua New Guinea and the housing factory will change that. 

“It is ludicrous that people are spending more money on an apartment in Port Moresby than in any major city like Los Angeles and New York.”

Nordal added: “It is clear that the cost of independence took its toll on the economy of PNG in the early years… but now it is time to focus on productivity and export … the housing project serves as a platform for the creation of infrastructure as all housing development needs good and efficient road access. 

“Hence, the housing shortage is used as a vehicle to take advantage of the working people who are spending up to 80% of their salary on rent and this must be stopped …”

In 2007, Westmark Ltd, a local company under Nordal signed a deal with the National Housing Corporation to build houses for public servants. 

Nordal said: “The  housing factory is a natural extension of our contractual activities and by default, will build  homes only for the locals, which will be ready by  November next year.

He said the engineering and subdivision costs were substantial the cost of fully servicing a lot is about K50,000-K60,000, and this made the investment big.