PNG Real Estate and its Current State
One of the components to the growth of Papua New Guinea are the project pipeline and the attractive investment opportunities for investors in the PNG real estate sector. This is according to the Oxford Business Group’s “The Report: Papua New Guinea 2016.” The Oxford Business Group is an international research, consultancy and publishing firm.
The report included interviews with Frank Kramer, CEO of Kramer Ausenco; Gudmundur Fridriksson, the CEO of Paga Hill Estate; and Dominic Avenell, Managing Director of Avenell Engineering Systems.
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From the Principles of Physics
The report delves what the government is doing to build PNG’s potential after its biggest liquefied natural gas development came on-stream. The report states, “Building on the momentum generated by the successful launch of the Papua New Guinea Liquefied Natural Gas project, the government continues to take the lead in stimulating construction activity in PNG, with various opportunities across the board from ports and road projects to a range of residential and commercial developments open to both domestic and foreign companies for participation and investment.”
These projects include the upgrade of the East Cape Road on Milne Bay and the Duran Housing Project.
Proper PNG Real Estate Management
A fall in GDP growth rate is likely to create a few hurdles but will not be enough to deter a moment of economic transition. Andrew Jeffreys – Oxford Business Group Chief Executive Officer – explains that their “debate showed that prudent decisions taken in a timely fashion, an enhanced business environment, and a wealth of untapped resources should provide the country with solid foundations as it enters a new phase of economic development.”
The report states that “with only 3% of land available to the government to build on and develop, the real estate sector in Papua New Guinea operates in a unique environment. Despite the majority of land being under customary ownership, with ownership rights held by extended family groups, there are still a number of opportunities for foreign investors and development in the sector.”
Another One for the Country
Paulius Kuncinas, Oxford Business Group managing editor for Asia, explained that the opening of Papua New Guinea’s first major Liquefied Natural Gas project can be considered a precedent to future foreign and local projects. He states that it may only be a matter of time before we see new activity in the market.