Property developers welcome new law

LARGE property developers in PNG have welcomed the recently passed Strata Title Law (STL).
Commenting on behalf of the developers, Property Developers Association chairman Peter Aitsi said the strata title was a win-win for both developer and property owners in the sense that while it provided another option in property development, more importantly, it provided another ownership structure which lessened the hurdle for people wanting to buy property.
“As developers, when we look at projects, we ask if there is a market for it, whether we will be able to make profit and how the structure of managing development costing is,” he said.
“The strata title concept allows us to get a return on investment and open up access to a market that’s not been affordable for people.”
Aitsi said the association was prepared to work closely with the Lands and Physical Planning Department to develop the strata title regulation.
“This is an area where the association can really make valuable contributions,” he said.
“We will work closely so that at the end of day, we have solid and effective regulatory platform carry the law,” he said.
The association requested to enter into a memorandum of understanding with the department to initiate its contribution towards the regulation.
He said while their contribution as major players was important, a structural change within the department was also necessary.
Aitsi said the association at this time consisted only of Steamship Group, Nasfund, Nambawan Supa, Credit Corporation, Lamana Group and Comrade Trustees.
“The intent is to grow membership so we have different levels of developers and be able to bring concerns in a unified voice within the Department of Lands, and bring about reforms in the sector which hopefully address challenges in the sector,” he said.