NHC plans to regulate housing rentals

The National Main Stories

By Rebecca Kuku
THE National Housing Corporation will start regulating housing rentals once a new policy is approved, says Minister for Housing and Urbanisation John Kaupa, pictured.
He told The National people could not afford the increase in rentals they had to pay.
“The rental prices are increasing that people are just not able to afford houses,” he said.
“We have whole families living in rooms and these rooms cost K500 fortnightly.
“So we have captured that concern in our new policy which will soon be presented to the National Executive Council.
“Once it’s approved, we will have the authority to start regulating the rental prices.”
Kaupa said the NHC right now did not have the authority to regulate the rental prices.
“These are businesses trying to make big profits, so houses are been rented out for K1000 weekly and K2000 weekly. And not many Papua New Guineans are able to meet the high rental rates.
“So we are doing this for the people.
“If the National Housing Corporation approves the new policy, we will be able to start regulating the rental rates throughout the city and in other centers in the country.”
Most of the apartments in Town, Gordon, Boroko and Waigani are rented out mostly by companies for their expatriate staff.
Locals rent homes out in the suburbs which cost very much less.

11 comments

  • I really need a good accomodation in Moresby at a low affordable price. Thanks to NHC for considering this.

  • A positive move however, regulating housing rentals in PNG is well and truly overdue.
    I personally think this is an issue that needs fast tracking – enough of lip service.

  • Good view from the Minsiter for the good of ordinary people of PNG. However; Lands commision and the Minister for lands, Building boards and city and Town developers need to consult external professionals to set up a stand and review what has been drafted and legislated prior to PNGs independence. Its about time for Port Moresby to consult Townsville as a sister city in the development sector if our current government and governor of NCD can agree with Ministers views so that rental rates differ from core CBD to prephery and outer suburbs and settlements.

  • The pain for an affordable rental home is real, please make it happen sooner. So much have been talked about it over the last 7 years but nothing has been forthcoming during these years. At last we’re seeing a light in the tunnel, but its not over yet until its over.
    Also, kindly regulate the cost of purchasing homes as well. Cost of low quality houses are ridiculously high which an average Papua New Guinean cannot afford. The First Time Home Ownership Scheme is a big time joke.

    Can the good Minister for Housing make this a reality soon?

  • This a very great and positive move by the minister. Most of the houses in the city are very expensive as they charge K1000 and above for per week and most citizens cannot afford this. Most citizens earn less than that amount in fortnight.Therefore, it is good to regulate this policy.

  • This is a move in the right direction. However, regulation of house rent alone without supplying more houses to match the demand might not be sustainable. In order to address the problems associated with house rent affordability in PNG, it is necessary to tackle both the supply and demand sides. In terms of the demand side, salaries of workers could be increased so that they could be able to pay for house rent at the same time be able to afford other necessities. For the case of supply side, more houses for rent could be constructed and supplied to the house rent market. This could be complimented by regulation as a way of minimizing the potential of some interest groups from sabotaging the system being put in place by government. In my opinion, the house rent affordability problems in PNG could be tackled by addressing the supply side in addition to the regulation of house rent. The regulation should be conducted in collaboration with the private sector. A house rent tribunal unit could be established at the lower court to address issues associated with house rent between landlords and tenants. In terms of supplying more houses for rent to match with demand in urban areas as a way of bringing down house rent, it is necessary for the National Housing Corporation, Department of Treasury, Department of National Planning and Monitoring, Department of Lands and Physical Planning and other key government agencies to facilitate private sector to construct more houses for rent in urban areas.

  • We should also issue house titles to owners now in the capital and other Centers in the country.

  • That’s a good start for NHC and I want NHC to also issue house titles to those of us who already paid in full.

  • I have been waiting on the government for such help,especially from NHC. I look forward for this change. However,I agree with John as this is long overdue as many if us had suffered struggling with rental issues over many years.

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