Not so bright future for real estate
Real estate Industries Association (REIA) president Mike Quinn said that the real estate industry will continue to decline in the market after APEC in 2018. This is because the supply for houses is bigger than the demand.
He said that Port Moresby enjoyed some stimulating progress to the economy with the PNG LNG project with many residential properties being built. The construction of the Pacific Games infrastructures started after the LNG project and Mr. Quinn said it was a hangout effect of it.
However, it did not help the market because there was a slowdown in residential and commercial property.
The president says, “Some of these funding has not been domestic funding and as a result the checks and balances that usually occurred, market assessments, review of people demand, market value of prices and assessment of demand has not occurred. Most of these funds are largely Chinese funded and not domestically funded and we appear to be heading to a commercial retail and office space in Port Moresby which without any particular stimulus occurring providing property prices and values down in 2018.”
He added that Port Moresby will maintain its values and demand in the residential sector in 2018 and that there will start to be a decline in demand and the market will slow down on pressure and prices.