Rise in spending adds stability to Mt Hagen market


THE real estate market in Mt Hagen is “stable” due to increased spending of the extractive sector, according to Real Estate Industry Associations president Mike Quinn.
He was commenting on the state of the real estate markets in provinces which host extractive sector projects.
“Other provinces enjoying mining and mineral extraction related activities are Madang with the Ramu NiCo project, New Ireland with the Lihir mine and the Highlands provinces where oil and gas are being extracted, as well as the Porgera mine,” he said.
“They all appear to be experiencing a flat and steady real estate market. The main winner in that area appears to be Mt Hagen where values are still fairly firm.
“Mt Hagen enjoys the spending of the royalties that the landowners from the oil and gas provinces receive. It has helped the market there remain stable.
“The disruptions to the Highlands Highway are affecting business and as a result also the property market. This potentially has a negative effect on property values.
“However, the 10-year Highlands Highway upgrade project to be funded by the Asian Development Bank will provide some confidence in this area and provide further stimulus.
“The non-mining and mineral extraction provinces that predominantly rely on agriculture, forestry and small-scale mines with large towns have experienced reductions in property values and demand as the general economy has softened.”