• Sat. Feb 24th, 2024

    Papua New Guinea Real Estate: Finding Affordable Housing in a Pricey Market

    ByNuala Hafner

    Jan 31, 2024
    Papua New Guinea Real Estate: Finding Affordable Housing in a Pricey Market

    Papua New Guinea is known for its stunning landscapes and rich cultural heritage. However, the country’s real estate market has recently garnered attention for being one of the most expensive in the world. This puts pressure on locals to find affordable housing options that fit within their budget.

    According to a recent report by a real estate company, renting a house in Papua New Guinea can cost around K3,000 fortnightly, without the inclusion of white goods or furniture. This is deemed unreasonable by many, considering the financial strain it places on individuals and families.

    To address this issue, Karama Development Limited recently organized an information seminar in Lae to discuss the sale of 134 houses in the Valley View Estate. These houses, originally built to accommodate staff members of the Hornibrook NGI company, are now being sold with the assistance of Karama Developments due to the company’s winding down of operations.

    The pricing of these houses ranges from K600,000 to K400,000, with the option of adding an outdoor patio for an additional K25,000. During the seminar, financial arrangements were also discussed, including the Bank South Pacific First Home-Owner Loan, which offers a 90% payout of the house price and a four percent interest rate.

    Taking into consideration the financial situations of many Papua New Guineans, Karama Development Limited aims to find a solution that benefits both the buyer and the seller. Furthermore, engagement in retirement arrangements was emphasized, providing options and insurance cover for those nearing retirement age.

    The seminar shed light on the fact that most Papua New Guineans, when asked about returning to their rural villages after retirement, expressed a preference for staying in the city. This preference is attributed to the fact that they have spent the majority of their lives in urban areas.

    While the Papua New Guinea real estate market remains challenging, efforts are being made to create opportunities for affordable housing. The Valley View Estate houses, with their various financial arrangements and considerations for retirees, provide a glimmer of hope for those looking to find a place to call home in this expensive market.

    Frequently Asked Questions (FAQ) about Affordable Housing in Papua New Guinea

    Q: Why is the real estate market in Papua New Guinea considered one of the most expensive in the world?
    A: The real estate market in Papua New Guinea is known for its high prices due to factors such as limited supply, high demand, and the country’s economic conditions.

    Q: How much does it cost to rent a house in Papua New Guinea?
    A: According to a recent report, renting a house in Papua New Guinea can cost around K3,000 fortnightly, excluding white goods or furniture.

    Q: What is Karama Development Limited and what is their role in addressing the housing issue?
    A: Karama Development Limited is a company that recently organized an information seminar to discuss the sale of 134 houses in the Valley View Estate. They are assisting in the sale of these houses, originally built for staff members of Hornibrook NGI company, due to the company’s winding down of operations.

    Q: What are the prices of the houses in the Valley View Estate?
    A: The prices of the houses in the Valley View Estate range from K600,000 to K400,000. There is also an option to add an outdoor patio for an additional K25,000.

    Q: Were there any financial arrangements discussed during the seminar?
    A: Yes, financial arrangements were discussed, including the Bank South Pacific First Home-Owner Loan, which offers a 90% payout of the house price and a four percent interest rate.

    Q: What considerations were made for retirees during the seminar?
    A: The seminar emphasized engagement in retirement arrangements and provided options and insurance cover for those nearing retirement age.

    Q: Do Papua New Guineans prefer to stay in the city or return to their rural villages after retirement?
    A: Most Papua New Guineans, when asked about returning to their rural villages after retirement, expressed a preference for staying in the city. This preference is attributed to the fact that they have spent the majority of their lives in urban areas.

    Q: Are there any efforts being made to create opportunities for affordable housing in Papua New Guinea?
    A: Yes, despite the challenges of the real estate market, efforts are being made to create opportunities for affordable housing. The Valley View Estate houses, with their various financial arrangements and considerations for retirees, provide hope for those looking for affordable housing options.

    Key Terms:
    – Karama Development Limited: A company assisting in the sale of houses in the Valley View Estate.
    – Valley View Estate: A housing development consisting of 134 houses originally built for staff members of the Hornibrook NGI company.

    Related Links:
    Bank South Pacific