Papua New Guinea : Projection of Real Estate sector 2018 to 2019
The real estate sector is slowly gaining momentum in Papua New Guinea where the demand for housing is becoming unsustainable. This current situation has resulted in the sky rocketing of rentals in real estate business, making it one of the viable sectors of the economy. This situation was mainly caused by the slow implementation of the much expected housing projects on the market to alleviate the high demand for housing. It is however anticipated that the participation of LPG construction company among others in the sector will stimulate growth in the real estate industry in Papua New Guinea. The situation is likely to improve thereby lowering the rental hikes (Quinn, 2017).
Papua New Guinea needs to create a favorable environment in the construction arena so as to promote growth in the housing sector, if the country is to meet its housing deficit these improvements ought to be implemented.
However there are other factors that may not allow the industry to flourish as anticipated among these incude the non-availability of foreign exchange which is a critical component in the construction sector. According to Quinn (2017), this is likely to slow down the progress to grow the sector due to the anticipated drop in the participation of other viable players in the market forces. Therefore the demand in real estate will still remain high thereby not changing the status quo.