PNG Economy: Better and Bolder
The Papua New Guinea real estate sector has seen its fair share of ups and downs. But a couple of new activities in the market may be able to help stabilise its continuous growth and contribute to the PNG economy.
Building Structures and Building Lives
Other than the prominent use of customary land titles in Papua New Guinea, there is also an abundance of land titles that are owned by the State which have high probabilities of being turned into development areas for the benefit of the PNG economy, through commercial investments. This is exactly what will happen to a 5-hectare piece of land that was acquired back in the 1970s by the State. The project will be called the Sepik Plains Special Economic Zone at Yangoru-Saussia.
This is according to the Prime Minister of Papua New Guinea himself, Peter O’Neill, on his speech during his visit to East Sepik recently with the Trade and Commerce Minister, Richard Maru. He adds that this specific project will create more employment and investment opportunities in terms of commercial investments and for small businesses. He continues to say that this will also “change the lives of many people and bring social and economic benefits to the people.”
Some of these benefits will come from the different entities that will soon rise within the borders of the special economic zone such as the Yangoru Water and Power Supply, and the Sepik Chicken Grain and Cocoa Innovation Project. Other sets of infrastructure are also hinted to rise inside the zone but have not been finalized yet. This is also great news for a subsidiary of the LR Group, Innovative Agro Industry Limited, as they have been the primary group that had been pushing the government to do this project for quite some time now.
Quality Products for Quality Businesses
Meanwhile, the government and other businesses interested in the special economic zone should not have any difficulties in terms of construction anymore as there are now even more sophisticated materials and accessories like the fire shield paints that are currently widely available for purchase and usage. This increase in supply and improvement in the technology of the products are expected to address an upcoming increase in demand for better quality materials due to the continuous growth of the PNG economy.
All of these new and innovative products had just been exhibited and showcased at the Lamana Hotel last Wednesday by the Papua New Guinea Institute of Architects and their respective partners through a trade show that was put together exclusively for the community of architects who are based in the country. Unlike the other products that are currently available in stores and through other suppliers though, these materials are set specifically for the tropical climate and for the particular needs of the Papua New Guinean market.
These materials come mainly from an Australian-based construction supply company, Pacific Islands International. They are a family-run business from Townsville that focuses on providing different building materials and products for the Pacific Island Nations like Papua New Guinea. The said products will be available through the local distributor Badili Hardware which also already has a wide range of building supplies for both residential and commercial properties.
Although the event was exclusively organized for the architecture community in Papua New Guinea who was able to see everything first-hand during the event, this will also be beneficial for locals and expats who now have the assurance that top of the line and technologically-advanced materials can be sourced within the country, through a trusted distributor and from a trusted supplier. This lowers the long-term costs for building new investment properties that are required to follow certain guidelines and regulations such as apartment complexes, condominiums, commercial and industrial spaces. This will help immensely for future projects that will be similar to the Sepik Plains Special Economic Zone at Yangoru-Saussia.
As more and more developments and initiatives begin to surface from the government and the private sector, a manifestation of opportunities begin to come to light as well. And since Papua New Guinea is considered to be one of the emerging markets internationally, these are definitely welcomed changes that will affect how the country is perceived in a global scale. This may one day soon also lead to policy changes that will improve how business transactions are made both in the retail and real estate sector.
Though not without its own set of controversies and troubles, this is definitely a great time for the country because its initiatives are focused towards the direction of financial growth and stability. This means that there are more provisions for anyone who is already thinking about starting their investment journey, and there is more complexity for those who are looking to diversify their investment portfolio.
Whatever the case, after taking all the risks into consideration, this can be a good time to make your move into the country and be part of the growth. Prices are low and potential returns are high. There is also no shortage of resources. Depending on your evaluation, it is never too soon to start thinking about your future gain.