Image Source: emtv.com.pgWith the intent to safeguard the security, welfare, and the future of clans in Papua New Guinea, they are being encouraged by the government to place their customary land under the Incorporated Land Groups (ILG) as opposed to selling them. This is to ensure that the land gets a return value while remaining under their ownership. But what exactly is ILG and what are the benefits of placing customary land under it? Incorporated Land GroupsActing Executive Director Esekia Warvi of the Office of Customary Land Development urged people to register under the Voluntary Customary Land Registration and the Incorporated Land Group. He says, “The ILG/VCLR processes are designed to eradicate land grabbing and pursue natural justice by granting formal recognition to land under customary ownership through incorporated landowning groups.”Max Wagi ILG manager for Southern and New Guinea Islands says, “By registering your land under an ILG, you will be recognised by the State to secure that piece of land by having a title so that any developer has to negotiate with the clan.”The role of ILGs is meant to protect owners of customary land from what is known as land grabbing – people or groups leasing out and abusing both the land meant for agricultural development and the landowner’s ability to intervene. These major land grabbing issues are done with the use of Special Agriculture and Business Leases.Cool Earth mentioned that in 2014, there was a study conducted on 36 agricultural projects that referenced 51 SABLs. The study showed that out of the 36, only 4 allowed crop production potential. This is why even the OCLD is backing up Prime Minister O’Neil, urging people to place their customary land under ILG. This recognizes the customary landowner group as a legal body, able to claim royalties and legal protection – they are able to sue people or groups abusing their land rights. Impact of Incorporated Land GroupsAccording to a case study by the Department of Foreign Affairs and Trade, there are a few lessons we can learn from the ILG. It states that it’s a good way for “customary groups to engage in the formal economy and legal system.” It also says that it can bring out the potential of land, assists in the administration of royalties and compensation payment, and allows flexibility in income distribution.But it also states that certain mechanisms still need to be created and utilized in order to fully take advantage of the ILG. These include mechanisms to educate people on capabilities, function, identification, and provision by the government. It continues that it does “require the support and regulation of government to ensure that they are effectively formed and managed.”Wagi concludes that even with the increase in the number of ILGs, further awareness is still required in order for the people to understand the importance of registering the land as opposed to selling it.Even with further requests for amendment, what matters now is that the option is already there, should there come a need for it. In the end, it is still under the landowner’s discretion.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

Image Source: emtv.com.pgAccording to the World Risk Index for 2016, Papua New Guinea is ranked number 10 out of 171 under the list of countries that are “most at risk of disasters”. Factors for arriving at this conclusion involves the evaluation of key elements such as poverty, slum housing, and law enforcement. In an effort to offset this, the National Housing Corporation commissioned the help of partners like the Shandong Yinjiang Industry Firm from China to launch the Duran Farm housing project, where it hopes to help alleviate the struggle brought about by the inability of many of its citizens to obtain quality housing properties, either due to a lack of supply or a lack of financial flexibility.More than a FarmIn line with the NHC’s desire to offer citizens better housing options, Shandong Yinjiang Industry aims to build around 100 residential homes or more. These houses will target the needs of middle-class citizens or public servants who are searching for higher quality homes but do not want to break the bank. In a recent interview with EMTV, engineers working on the site said that the homes are built to last up to 100 years. The president of the firm – Rongtian Xu – expounds that the Duran Farm development is a “manifestation of the government’s concern about the people’s welfare, well-being.” And with that kind of mindset, they hope to “create a model of township for PNG.” More for LessBeing a first-time developer in the Papua New Guinea scene, Rongtian Xu assures that their firm offers the same quality property developments as the ones offered by other modern developers. And all of this without amplifying the sales price or the cost of the project itself. He adds that they offer up to a 70 percent discount for the homes to make it more affordable for citizens.A house with three bedrooms will only set buyers back K350,000. A four-bedroom house will cost around K400,000. And a five-bedroom house will only cost K450,000. But already included in these packages are the allocated land titles. Chief Secretary, Isaac Lupari, states though that most of the units will be bought by the government so they can encourage public servants to purchase it through the Bank South Pacific loan scheme which can allow them to borrow up to K200 million.The managing director of NHC, John Dege, states that water and electricity are also already ready to be installed. They are just waiting for the final payment to be released before proceeding. More to ComeSince they’re already currently doing business inside Papua New Guinea, Shandong Yinjiang Industry is also planning to expand and develop similar housing projects. They are particularly interested in the Morobe province, where they are constantly trying to negotiate a mutually beneficial deal with the local government.If successful with their partnership, the NHC, the Shandong Yinjiang Industry, and the other developers who are currently involved in this project can potentially be the pioneers of what could be a great shift in the housing landscape of the country.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

Papua New Guinea is a resource-rich country and a growing area for different construction projects and developments that can range anywhere from simple residential to complex buildings, and Port Moresby Electrical has been a huge part of that growth as one of the trusted companies to have shaped the current landscape of the industry solutions sector. Starting from humble beginnings in 1968, they have slowly worked their way up to achieve an impressive track record they can now boast about. Not only is their portfolio overflowing with the number of projects they’ve done, it’s also filled with landmark projects such as the Grand Papua Hotel, the PNG LNG Camps and the Sir John Guise Stadium.Respectively showing “Sir John Guide Stadium”, “PNG LNG Camps” and the “Grand Papua Hotel” Addressing the Shortage of ExpertiseBecause Papua New Guinea is an emerging market, references remain scarce or vague at times in terms of regulations, policies, and guidelines for securing work and construction permits. Certain aspects of the process remain confusing. As a result, things like data and communication, electrical, industrial process, hazard safety and operational area requirements rarely get met in a timely and cost-efficient manner.Having recognized this, Port Moresby Electrical was conceptualized and created to assist in solving these concerns. As an evidence to that commitment, they have even set up a 24/7 support hotline in order to faithfully address any query that might suddenly come up. PME has also made it a point to continuously search for ways to both increase the quality and decrease the cost of construction. This includes educating their employees on the importance of following the law and the international standards that would focus on safety and efficiency, which has greatly helped in streamlining the process of construction and maintenance in the country.Addressing ConcernsThere are several things you can consult with or even just leave to the hands of the specially trained experts from Port Moresby Electrical. Some of them are the following:Construction (Engineering, design, Automation, Motor Control, etc.)Mining (EPC Services, High Voltage Electrical Reticulation, Telecommunications, etc.)Oil & Gas (Instrumentation, Pipeline Servicing, Hazardous Area Installation)Fire Safety (System Testing, System Installation, System Repair, Signage Supply, etc.)Plumbing (Drain Cleaning, Plumbing Installation, Plumbing Maintenance, etc.)Shutdowns & Turnarounds (Planning, Mobilisation, Execution, Access)Procurement (Material Management, Logistic, Strategic Sourcing, etc.)Maintenance (Compliance Audits, Assets Tracking, etc.)Customisable Crew Hire (Work Permit, Visa Support, Personnel Certifications, etc.)Importance of SafetyAs part of its quality assurance, Port Moresby PNG also places emphasis on safety. It has over a million man hours and a safety record of 1 to back them up, where 0 is the highest rating any company can get. So, getting the services of PME means a safer environment for investors and property owners, during the construction phase and in the long run after the project has been completed.There are plenty of specialty providers that you can choose from that would be able to assist you, but only PME can claim to fully specialize in all areas of mining, commercial, major residential, and industrial installations. With over 45 years of experience in providing quality service and assistance in Papua New Guinea, you are sure that they are the best at what they do and will be able to address all key concerns that you may or may not know about before, during and after construction.If you’re planning on setting up any type of property, they can also provide you with a free quote or continued support through their 24/7 hotline service where their friendly staff are just waiting for your call. For more information, you can visit www.pmepng.com or call them now at +675 325 3533.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

A few years back, Touaguba Hill was just a suburb that was a traditional gardening area for the clans of Hanuabada. Moving to the present time, Touaguba Hill is now one of the more progressive suburbs that boast modern and attractive real estate development and investment opportunities. The area also boasts efficient access to water supply and a 24-hour security system for safety.Adding to that, this part of Port Moresby will also be the future location for which a new major housing project from NPL Development Ltd will stand. The project shall be called Touaguba Hill Paradise and will include three apartment buildings with 9 levels each to cater to future unit owners. It will be located at the highest point of Touaguba Hill and will also comprise of 113 fully furnished units. This news comes not long after an increase in demand for quality accommodations and housing in the area and is aimed to address the issue through attractive solutions.According to NPL Development Ltd’s Managing Director, Dato’ Jimmy Poh, the project has around 23,373.70 square meters of construction area at a cost of K90 million. It is expected to take around 2 years to build it and is targeted to reach completion by June of 2018. He also says that “the development of Touaguba Hill Paradise is a collaboration of international team of designers and real estate firm to deliver a very well thought out living space with style and flair.”Placing particular importance to the design, the developers had also given much consideration to align the aesthetics with the view of the property which will be overlooking Ela Beach, Koki Bay and a portion of Harbour City. The fully furnished apartment will feature some classy interiors and a set of facilities that will bring a modern way of living for unit owners, including a top of the line basement parking for tenants.The location of the property is probably also another selling point as it’s only minutes away from the city’s central business district. As of now, DAC Real Estate has been announced as the sales agent of Touaguba Hill Paradise.Papua New Guinea likely to experience growth in the employment sector thanks to foreign investmentsAt the opening of the project, NCD Governor Powes Parkop also spoke about what this development meant and entails. He says that the project is a strong indicator of growth in the economy. At most, it gives the impression that the economic situation of Papua New Guinea is doing fine. This will help bringing in more foreign investments to the country so that there can be more of both upscale and budget-sensitive construction projects.More than the good news for expats, Parkop says that one of the more important things is that these types of projects will generate new jobs for the skilled workers in the area.Many stadiums have been built in the last few years, specifically because Papua New Guinea was host to the 2015 Pacific Games. Among these are the National Football Stadium, Sir John Guise Stadium, and the Sir Hubert Murray Stadium. But due to the dwindling number of constructions of infrastructure those had been completed, there had been an influx of homeless people in Port Moresby. So, this news will surely be welcomed with open arms by the people who had only recently lost their homes because of a lack of employment.First Ever Housing Policy AnnouncedAnother entity that’s addressing these employment and real estate issues is the National Gaming Control Board or the NGCB who just recently announced the first ever housing policy. The Housing Policy 2016-2020 aims to incentivise the efforts of countless employees and staff members who have dedicated years into the service of the organization.One of the criteria to receive shares from the 20 land lease titles the government has allocated is to have at least five years of permanent employment with the NGCB. According to the National Gaming Control Board chief executive Imelda Agon, as of the moment, there are around 24 staff members that are eligible to apply for this program, based on gender equality and income level. She states, “This particular lease title will go to the low income earners of the NGCB because it’s difficult for them to buy a house. So, in that way, we are also participating in the government’s housing program. We have given back supporting communities, health, education, different sectors including sports and support the preservation of our rich culture and natural resources. I believe it’s time to give back to the dedicated staff of NGCB.”There had certainly been a lot of progress in the policies of both private and national organizations and companies in the country. It is only a matter of time before the economy stabilizes and moves forward to produce more opportunities to develop meaningful housing projects that will lessen poverty and provide housing opportunities for the citizens of Papua New Guinea.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

Papua New Guinea has seen significant growth in the last ten years. This may be due to the fact that there have been many investors who have placed their money on industries such as oil and copper mining. But what effects have these investments had on the PNG population? Many developments and infrastructures have also been made such as the PNG LNG project and the South Pacific games infrastructure which has contributed much to provide employment for struggling Papua New Guineans. Big projects such as this required the utilization of a huge amount of manpower and have contributed significantly to the economic growth during the last decade. But employment opportunities have become scarce once more now that there are fewer infrastructures being made and there are even more disputes in the mining industry, with its effect being apparent through the number of homeless people who have made the streets their home.Huge amounts of homeless people have been on tally in Port Moresby throughout the years, but the sudden increase and fluctuation has been alarming. And although joint efforts by the government and various NGOs have placed the situation under control, these initiatives have fallen short at times in the long run as the loss of jobs takes its toll on individuals and their families.The Papua New Media Council Head and Post Courier Newspaper executive editor Alex Rheeney says of the situation during an interview with RadioNZ:“There have been pictures posted on social media of kids sleeping in front of the shops, but I think one of the interventions that the government did, I think the last time when it sort of seriously decided to address the issue of poverty on the streets of Port Moresby was just a month away from the Pacific Games last year when it decided that the kids will be taken in by various NGO partners and looked after for the duration of the games. And unfortunately just six to eight months on from the games, there seems to be an indication of more homeless kids on the streets.”While the government has done well in certain sectors due to “high global commodity prices”, Rheeney believes that this has not been felt or translated for the needs of those who are at the floor of the social class even though a lot of actions and plans have been undertaken by the government to offset this lack of employment as of the moment.In a personal post he made in one of his social media sites, Rheeney explains that Papua New Guinea is in dire need of emphatic leaders who will evaluate the positives and negatives of policies that have been made and established.He continues on to say that “all the construction that was connected to the construction phase of the PNG LNG project and then the South Pacific games infrastructure, there was a lot of employment, there were a lot of Papua New Guineans who basically benefited from the big government investment in infrastructure for the Pacific games but unfortunately now with the down turn in the global economy and the revenue that the government is getting from the exports has dwindled. So there are a lot of Papua New Guineans now who are out of jobs and who are struggling to actually make ends meet and we are seeing that manifest itself.”On the other hand, this economic regress comes with plenty of opportunities to develop interesting projects from different sectors such as media, tourism, real estate, infrastructure and maybe even international investments and financial assistance which is similar to what ADB has been doing for the past years. We may even see an increase in the supply of properties which can lead to international interest because of lower property rentals and lower property purchase cost.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

Source image: news.pngfacts.com With the recent conclusion of the ACP Summit held at Port Moresby, 79 leaders from the African, Caribbean and Pacific countries have gathered to discuss lessons learned from each of their respective areas. Possible alliances and collaborative efforts were also topics of discussion for future developments. But the summit held particular interest for developing an “earliest adoption of a United Nations General Assembly Resolution to develop an international legal framework governing human rights and climate change” according to the recently published In Depth News article that came out online.This comes with the leaders also seeking a joint conference between them and the UN, along with international financial entities and the European Commission. This is in line with their longing for an “intensification of South-South and Triangular Cooperation to build the productive capacities of ACP countries,” to which, the UN states that they are open to do. Roy Trivedy who is an attendee of the said conference and who is the United Nations Resident Coordinator also confirms its support for the said countries, most especially for Papua New Guinea pushing for sustainable development goals. He says that the Papua New Guinea-based UN country team is in full support of this.Though focused in the regard of human rights and the effects of climate change, the ACP also discussed issues from different sectors as well that were mentioned in the statement made by Papua New Guinea Prime Minister Peter O’Neill where he says, “the Summit adopted the Port Moresby Declaration that captures the main outcomes of the leaders’ discussions, and the Waigani Communiqué that sets the way forward for the future of the ACP Group beyond the expiry of the ACP-EU Cotonou Partnership Agreement in 2020… I believe this Summit has inspired us to take the giant steps in our approach that will shape and transform the ACP Group into a more dynamic force.” Improved Governance to Drive more Investments and Improve Citizens’ LivesWhile it wasn’t directly mentioned, the Waigani Communiqué and the Port Moresby Declaration where both documents and declarations communicate plans to improve the lives of its citizens through efficient and proper governance that will promote trade and investments where it is most needed, particularly for the entrepreneurship, technology, private sector building capacity and technological sectors. This could mean more infrastructure and real estate policies and construction.There were also discussions for achieving financial stability and self-sufficiency through a long-term endowment fund and venturing into solutions through a collaboration of both the public and private sectors.The nearing expiration of the ACP-EU Cotonou agreement or partnership is also a growing concern. But members of the ACP countries will remain persistent in trying to enhance and renew this agreement, while at the same time negotiating an improved agreement starting in 2018. The Summit will focus on issues that are of interest to both delegations and what has been gained by both the ACP and EU during this time as part of its negotiation. The benefits and focus of the financial partnershipBut with the approach of the expiration of the ACP-EU Cotonou agreement, there are also more opportunities that come as a form of support that may help alleviate poverty, issues with infrastructure and homelessness which is a big issue right now in Papua New Guinea. In an interview with The Financial, Marcelo Minc who is the ADB Country Director in Papua New Guinea states that it has “been engaged with PNG for 45 years and in that time the partnership has rehabilitated transport infrastructure, improved air safety, provided basic health services to the rural population, extended financial services to the unbanked, and removed barriers to jobs and business creation.”This statement signals ADB’s renewed and continued commitment to Papua New Guinea where the cumulative ADB assistance to PNG has increased from $1.27 billion last 2009 to roughly $2.13 billion last year. This is largely due to the different projects that were put in place during the 45 years of financial assistance by ADB which reached $1.04 billion in 2015.This financial partnership will focus on infrastructure in the provinces through their local governments who play a key role in the implementation of projects. This will allow new opportunities for investment and employment that can possibly assist poor families into a better future. And though the primary focus of this assistance was for transport upgrades and the construction of infrastructural developments, ADB hopes that this may also provide better opportunities for health services, banking services and also a more suitable environment for those who wish to do business in Papua New Guinea. This could mean better conditions for those who are also wishing to go into the property market.With the continued efforts of the government and partnering countries and institutions around the world, Papua New Guinea is definitely bound to see better years ahead. It’s only a matter of good governance and time that will tell how everything will unfold. But this is surely an exciting time for Papua New Guinea.Subscribe to our Newsletter to receive news and updates about New Developments, Free Land Titles News, Real Estate & Housing Demand trends and other programmes to help PNG home buyers!

Recently fire damage has caused huge losses for property owners. Houses have been lost, businesses have ceased operating and motor vehicles destroyed. The health of those effected has suffered and of course medical costs add to the pain experienced.These events are always just around the corner threatening our safety and security. Those who have taken the correct insurance policies to protect their investments can rest easy in the knowledge that their businesses and property are secured against such disasters and financial security is assured. Unfortunately though, those who have not taken up the challenge to make sure correct insurance is in place need to worry on the edge of their seats every time a bad event approaches.To protect or not to protect is the question and when your health and your property is at risk it is best to take the challenge head on and call on professionals for advice.In Papua New Guinea one of those choices stands out from the rest. Trans Pacific Assurance Ltd provides superior service and coverage and are definitely not ‘like one of the rest’.Complimentary insurance health checks can easily be provided on your current business, property, motor vehicle and medical insurance coverage. This is where a team of professionals will thoughtfully search through and identify where not enough protection is being provided for the good money you are currently paying ‘one of the rest’. Trans Pacific Assurance Ltd are proud to be different and proud to help Papua New Guineans navigate their insurance needs and take the challenge head on.Face up to that challenge right now and call 321 6808, click here to contact your insurance Healthline or simply fill the form below!InsuranceWe would love to hear from you! Please fill out this form and we will get in touch with you shortly.Name*Telephone*Email*Province*Comments

Maggie Kupp Kuli, 39, from the Western Highlands Province has been a BSP customer since 1999, when she was still a student. She moved into her house recently and the experience was truly rewarding. “It is with great satisfaction I have my own house, a place to rest, no more rentals and moving from house to house,” she said with a smile.She utilised the BSP and PNG Government First Home Ownership Scheme (FHOS), a Home Loan Product that offers:Highly competitive interest rates, at only 4%, affordable loan amounts up to a maximum of K400, 000 and a flexible repayment plan of up to 40 years. Equity is only 10%.“I really appreciate BSP for making available this loan facility to assist the average Papua New Guinean to own a home, where the requirements are affordable. Thank you BSP, thank you PNG Government.”If Maggie can do it, so can you. “I encourage others to participate, no need to save big, as long as you have enough equity to meet the bank’s requirement you can own a home, so it is worth trying rather than waiting,” she adds.Vagi Vicky Kulu-Manek, a BSP customer of 20 years, says: “I encourage Papua New Guineans to purchase a property, a dwelling place you can call home. This is a lifetime asset for you, your children and the future. It is a milestone achievement.”There are sentiments that home ownership is for the wealthy or something to be done post retirement when superannuation funds are cashed, but these myths have been broken by ordinary, average Papua New Guineans who have taken a step to seek information and help from the bank.Linzy Tonnakku Bari, 29, from the Autonomous Region of Bougainville could not agree more.“The thing that really stands out for me in this experience is that you do not have to be a millionaire to purchase your home. Anything is possible you just have to commit your time, manage your money well and you will surely own your own home.”“This is a true investment, not only for yourself but for your future. I highly recommend the BSP first home ownership loan” she added.What can BSP do for you?BSP has funded up to 141 loans for first home buyers under the FHOS, with a total value of K 54.448 millionThe FHOS is now considered a catalyst for growth in the housing market. The market has been attractive to property developers who started building homes and offering them for sale in and around Port Moresby.BSP First Home Ownership Scheme was introduced with the aim to provide Papua New Guineans with an affordable Home Loan to purchase their first home.The majority of loans funded are in Port Moresby largely due to size of market and increased interest from housing developers. However, interests from potential home buyers also remain high from across PNG, from young professionals to long-serving employee in both the public and private sectors.It is the intention of the partnership arrangement with the government to have a clearly defined set of eligible purposes to guide potential borrowers attempting to benefit from the First Home Ownership Scheme.These eligible purposes are:Purchase land under a state lease for the construction of a new house;Build a new house on a state land; andPurchase both house and land under a state lease; orPurchase a house which is less than 6 months old that is on a state land.There have also been concerns raised about limited number of properties going for K400, 000, but BSP has assured that they also have options to address those concerns.Besides FHOS, customers also can take advantage of BSP’s standard home loan product. This product also gives you the freedom to work out your equity and apply for a Home Loan with BSP. The Interest rate and repayment terms vary in this instance.All interested and potential first home buyers can call into any BSP branch to seek more information or simply express your interest by filling the form below.Banks and Finance FormWe would love to hear from you! Please fill out this form and we will get in touch with you shortly.Name*Number*Email*Inquiry typePlease select inquiry typeAsset FinanceBusiness loansConnect to Finance BrokerHome loansInvestment loansPersonal LoansSmall Business LoansOtherChoose BranchPlease SelectAitapeAlotauArawaBiallaBorokoBSP HausBukaBuloloDaruGordonsGorokaKainantuKaviengKimbeKiungaKokopoKundiawaLae CCLihirLorengauMadangMarketMendiMount HagenPogeraPopondettaPort MoresbyRabaulTariTop TownVanimoWabagWaigani BCWaigani DriveWewakCommentsEmailThis field is for validation purposes and should be left unchanged. This iframe contains the logic required to handle Ajax powered Gravity Forms.

Papua New Guineans wishing to build their own homes have been constantly faced with the challenge of securing land titles to offer to the banks.However, this will now be a thing of the past with a launching of a new K20 million government-sponsored housing scheme designed to enable public servants to access state land titles to build their own homes.The project will come under the trusteeship of 5 government agencies including Department of Lands and Physical Planning, Department of Finance, Office of Urbanisation and the Department of Justice and Attorney General where each department will carry with it specific conditions. According to Board Chairman, Sam Wange, there were 32 government departments and organisations that came together, put ideas together and work together to acquire state lands in Gerehu stage 3B.Of these departments and organisations, only five departments were nominated to own land titles at Gerehu Stage 3B. Who Will Obtain a Land Title?This would mean that public servants working in those departments would be allowed upon meeting the requirements to secure land titles to offer to the affiliated banks as collaterals to build their own homes through the first home ownership scheme.The Gerehu site has been divided into 1,734 blocks of land but it is anticipated that more land would be further divided for housing development depending on the pilot project.“Land is the biggest problem for Papua New Guineans and for government workers as well as workers in the private sector,” chief executive officer of the Office of Urbanisation, Max Kep said.Mr Kep said the new housing initiative with government agencies coming together and making available parcels of land that has services such as water, power and sewerage could make a lot of difference. He said the land under this scheme would be given to qualified public servants through a raffle system.“The first 500 will be raffled in the next few weeks or so. These are the ones that the bank has already qualified to have bank loans,” he said. Land Title ConditionsAs with other undeveloped state land in the country, settlers have already built permanent houses on the site. But the message from the government to them is very clear.“I ask those people living up there to start vacating the land because this land is owned by the state which will be assigned to the five nominated trustees,” he said.The new K20 million housing scheme will be paired with the first home ownership scheme (FHOS) that the government has with the BSP Bank. Under the FHOS, the government allocated K200 million to the Bank South Pacific for Papua New Guineans to access housing loans at the lower interest rate.However, what has been a challenge for many Papua New Guineans is obtaining secure lands titles to access that loan. For now, the public servants at least will be given better access to this loan through this scheme which will have strong conditions.“People who benefit from it will have to comply with certain conditions meaning that they cannot deal with the land nor sell it. We don’t want people to speculate on it and sell it to another people,” Mr Kep explained.

Are you wanting to live an easy lifestyle that is affordable? Look no further than the Gold Coast, a world-class destination famous for its beaches and relaxed lifestyle.It’s the entertainment capital of Australia. Demand for property is great from investors due to strong economic growth and employment opportunities as a result of many new developments that are being completed.The City of Gold Coast is located approximately 50 minutes south of Brisbane on the East Coast of Australia and stretching over 414km2. With a strong population growing,it is expected to have a 2.2% growth rise annually, making the Gold Coast record the largest population growth by 2021. Coomera, Pimpama and Upper Coomera are the leading suburbs for growth in the new residential estates. If you are still not convinced, there are several reasons why you should invest on the Gold Coast. Here are just a few of the projects currently in the pipeline:$13.5 billion will be invested in major projects in the upcoming years due to the Gold Coast 2018 Commonwealth GamesGold Coast welcomes additional 12 million visitors to its many hotels and resorts as the entertainment capital of AustraliaCompetitive and affordable at the same timeLeading universities & over 152 schools$345 million casino re-development$2 billion resort and casino plans for the Broadwater$670 million Pacific Fair re-development$200 million airport expansion$1.2 billion cruise ship terminal$750 million Coomera Town CentreThe depth and diversity of these projects means job creation and people moving into the area for employment, therefore providing strong rental returns. Education another key reason people are moving to the Gold Coast. The Gold Coast was ranked in the top 100 cities in the world for university students to live due to it being student friendly due to public transport access. Griffith University (public) was ranked 37th and Bond University (private institution) ranked at 81st. There is also Southern Cross University in Coolangatta along with numerous technical Colleges including TAFE. So, How is Transportation?Transport infrastructure is well serviced on the Gold Coast with the main rail line connection to Brisbane CBD and Brisbane International airport. Transport in and around the Gold Coast in partial to and from Griffith University is very convenient due to the light rail that starts at Griffith located beside the Griffith Gold Coast Hospital and ends at Broadbeach South. Transport to Bond University is easily accessible through the use of the heavy rail and buses. The Gold Coast has had a growth of 5,200 units/apartments approved in the past two years, with affordability in the suburbs of Carrara, Coombabah, Labrador, Nerang, Ormeau, Oxenford and Pacific Pines. These suburbs are ranging from $350,000 to $450,000 with a strong reputation for affordable investments.With fully completed apartments now available at East Quaysn and Coast Broadwater, plus House and Land packages at Pimpama and Coomera in the $450,000 – $500,000 price range. East Quays offers over 60 apartments with a mix of two bedrooms + study, three bedrooms and 3 bedrooms + study apartments. An easy living lifestyle at a waterfront development, with an elegant contemporary design of superior quality, sculptural form and lush gardens. Where to InvestLocated next door to Harbourtown and Harbour Side Markets and only 15 minutes to Surfers Paradise, it is a short drive to Griffith university and Griffith University Hospital. With low body corporate fees, it makes life in East Quays a breeze with a pool, spa, sauna, gym, BBQ facilities, visitors parking, private and secure parking and indoor residents lounge. 2016 is the time to invest in the Gold Coast market, with another range of completed apartments at Coast Broadwater. One and two bedroom apartments with beautiful views over the district and along the Broadwater are now available.Coast Broadwater is located on Marine Parade in Labrador with easy access to schools in Southport and Labrador. With just a short drive to Harbourtown shopping centre and Surfers Paradise, this is the investors dream apartment. Not only have these apartments have just come onto the market, they are stunning inside and have great views overlooking Broadwater.Additionally, to keep up with the fast growing population, the interchange at Exit 54 on the Pacific Highway, Coomera (see picture below) is under re-development to help move traffic increasing with the new Coomera Town Centre. Don’t want to Invest in an Apartment? Choose to Invest in LandNot wanting to invest into an apartment? Then we have house and land that is available in Coomera and Pimpama. This $74.5 million upgrade is on track to be completed by the end of 2016. These properties are easily accessible with the highway close by if you attend work or university in Brisbane. With a new development called Coomera Urban Village this is the perfect time to get the property you’ve been dreaming of. Located on the corner of Foxwell Rd and Finnegan Way, there is dual access with over 37,000 cars passing daily and expected to grow to 46,000 by 2031. Coomera Urban Village is to be a popular living area due to the development of the Coomera Town Centre and only minutes from the Coomera Train Station, and Coomera TAFE Campus. Only 50 minutes by train, this is a central location for students and commuters to Brisbane.2016 is the time to invest in the Gold Coast! It is said by developers, there will be no more land and housing developments left by 2023. Hurry in quick, before time… and land runs out!Click Here to See Australian Properties and Inquire Now!Want to meet the expert Angela Vinnicombe? Write to her HERE!

We are fast moving into 2016 and it is interesting to note a stall in the demand for quality residential properties, in what is being called a ‘mum and dad’ market.Despite efforts to offer more housing to the market, demand for high-end housing in Papua New Guinea remained relatively low for the last five years.According to Berkeley Capital’s sales manager, Douglas Norris, the types of residential properties being built from 2010-2015 only targeted the multinational company-based residential market, more specifically to house expatriate workers rather than catering to average citizens.“The high end products being built meant that their selling prices within those periods were extremely high and out of reach for the average family in Port Moresby to afford.  Affordable housing demand will still remain high until such times when more people begin to own their own homes. But local demand for high end quality properties has dropped,” Mr Norris said.However, the demand is also reliant on the continuance of major impact projects that attract expatriate workers to the country. With the advancement of new projects like the Wafi-Golpu Advanced Exploration Project, Frieda River Project and now the Papua LNG Project, more expatriate workers will have to come into the country. This means market demand for high end properties will start to increase again.He said Berkeley’s objective, as a property developer, was to show the market in PNG that anyone on any budget can build quality properties, and not the stick homes seen everywhere, at affordable prices. Mr Norris said the company had delivered that promise, and that had resulted in a runaway success on the sales front.Meanwhile, the real estate market demand and supply trend for this year (2016) as well as the coming years would depend entirely on the Government, which means if the government can deliver enough vacant land for property developments, then the demand for residential properties will remain.However, if the government can’t release large chunks of residential allotments, then we expect that the demand will be short lived in the “mum and dad” market.The important thing is to find a balance that should not allow demand to get to that level; and a controlled release through PPE would ensure that does not happen and the market remains stable. As Mr Norris highlighted, some of the properties being built in Port Moresby at the moment are of such a poor standard that many doubt the properties will still be standing in five years time.“We encourage potential buyers to do due diligence on the developers and make sure they will deliver quality at affordable prices,” Mr Norris said.Berkeley Capital is currently working on 48 houses at the recently launched Gobuta Street Estate at Tokarara in Port Moresby. The company is looking at expanding into other sites in Port Moresby and Lae.

The satisfaction of owning a home is truly priceless because your own home is a place to raise your family, and importantly, it can be passed down to provide security for your children.Many Papua New Guineans do have a dream to own a home, but are often reluctant and put it off until later, due to many reasons, including high house prices, interest rates and repayment terms.Well there is good news, the BSP First Home Ownership Scheme (FHOS) has a much longer loan term and a concessional interest rate. About the First Home Ownership SchemeThe FHOS is a joint initiative between the Government of PNG and BSP, and provides access to all Papua New Guineans to flexible and affordable financial arrangements to enable them to own their own home.The FHOS offers a loan up to K400,000 which means customers will not have to pay for stamp duty. Equity is at 10% and repayment up to 40 years at an interest rate of 4% per annum.And we have a happy FHOS customer, David Jonah, who recently moved into his new home with his family, and he is thankful that he took that step to seek help and advice from BSP.“It was a wise decision to visit my branch and enquire, as I given valuable information which resulted in me deciding to purchase my new house” said Mr Jonah.You can have a house and call it your own. Take that first step HERE. It is open to all Papua New Guineans, whether you are working in the private or public sector, as long as you have the income capacity, including housing allowance, that ensures you afford loan repayments.Now the FHOS is tailored for first home buyers for self-dwelling. If you are interested it is important to note that you must not have not owned or part owned a house under state lease. Your spouse or defacto partner does not own or part own a property under a State Lease. And also you must not have applied for any other housing loan via another scheme.Under the FHOS, these are some criteria:•   Buy land under a state lease for the construction of a new house;•   Build a new house on a state land; and•   Buy both house and land under a state lease; or•   Buy a house which is less than 12 months old that is on a state land.•   Buy land under a state lease for the construction of a new house;•   Build a new house on a state land; and•   Buy both house and land under a state lease; or•   Buy a house which is less than 12 months old that is on a state land.Want to renovate or buy your second home?BSP also offers other Home Loan Products for other customers who may want to purchase another home, want to renovate or extend.The BSP Home Loan product is the best option to take. Unlike the FHOS, this product gives you the freedom to work out your equity and apply for an amount over K400, 000 +. The Interest rate is fixed and repayment terms vary in this instance.Set a Goal and start saving for your House.Everyone can be able to own a house. Make a commitment to start saving up for a house.photo credit: skerah.comIf you are interested, please visit your nearest branch or email [email protected], [email protected] or CLICK HERE to send an inquire.

Learning from customers’ tastes and providing services that best suit their needs is a way towards enhancing the success of a business organisation. This is exactly what all locally owned real estate developer should be doing by offering the most preferred residential property types.For example, Our Real Estate Ltd has been developing and marketing excellent residential houses to cater for the different market needs. The company has advanced well in the real estate industry in developing high quality residential homes including executive duplexes and split level executive houses to offer to the market.It has recently diverted its attention to building more of low and high set standard-alone houses that most of their clients are asking for. Manager for Our Real Estate Ltd., Stanley Naime, revealed that apart from developing and marketing executive duplexes, the company will develop stand-alone houses to differentiate between duplex and the stand-alone houses.“This is because when many of our clients come for inspections, they ask if we have any stand-alone house.”“We learned that the demand for stand-alone houses is very high in the city. To cater for the demand, we will be developing 10-15 stand-alone houses on our project site in the next phase of our property development listings. We have 300 allotments to develop. We are trying to acquire enough land and expand our company into developing more residential as well as commercial properties for lease at very affordable prices,” Mr Naime said.The company had already constructed 12 units in a gated compound at Rainbow Heights in Gerehu. Of those properties, ten units had already been occupied by corporate clients while two units are still awaiting clients to move in. All the units are well designed and maintenance-free unlike other kit homes that require regular maintenance.The internal features of the units are well-designed and come with furnished brown and white goods, tiled ceramic floors, nice air-conditions, spacious kitchen and laundry areas to meet every client needs. The units are not for sale. They are all on rent. The upper units are renting at K1500 per week while the lower units are leasing at K 1200 to K1300 each week depending on the quality of the units.“Market prices depend on the sizes and qualities of the units we have. Our units are of very high quality and they are ideal for corporate clients as our main target market. However, we do not necessarily restrict our properties only to corporate clients. Any client with sound budgets and reputable behavior can occupy the units,” Mr Naime said.Note: Images are for display only.

Market demand for low-end residential housing in Port Moresby remains high despite efforts to make available more affordable houses to meet the increasing demand.While the demand for high-end housing lessened after the completion of the PNG LNG construction phase last year (2014), the limited supply of medium and low end housing cannot adequately cater for the increasing demand from home buyers who are eyeing more affordable housing, thereby widening the housing supply and demand gap in the real estate market.This trend has resulted in the prices to remain unchanged for the lower end houses in the city.According to Khor Eng Hock & Sons (PNG) Ltd general manager Phil Ho, there are currently huge shortages in the affordable low and medium housing, especially affordable housing that is below K250 000.“But there is an abundant supply of high end housing in Port Moresby. Demand for high end housing in good and secured locations is still high, especially the newer units and those close to main amenities,” Mr Ho said.While this situation is ongoing, the challenge is now with the real estate developers to develop and make available more affordable housing to suit the market demand and customer tastes. It is expected that the general decline in the demand for high end housing may possibly force property owners to lower the selling prices and rental rates of some of their residential properties. Rental rates and prices for medium to low end houses will remain unchanged or will slightly increase following the market demand.The signs are already showing. Some high end units in Down Town, Boroko, Gordon area and Waigani that were previously leasing for K350 000-K700 000, or renting at K4000-K6000 per week, are now leasing and renting at K250 000-K550 000 and K1000-K4000 per week, respectively.It is expected that housing prices and rental rates will continue to drop as more and more people start to develop and manage their own houses through the Government’s housing initiatives.

The recent Court’s fires, the Brian Bell fires in Lae, and the continuing car accidents along the Highlands Highway have called on PNG citizens and property owners to insure their lives and properties against these ongoing risks.The significance of insurance in Papua New Guinea has not been widely acknowledged by citizens in the past years and it has remained a low priority when purchasing a major asset such as property. However, Papua New Guinea has experienced dramatic economic growth driven by major real estate projects such as the PNG LNG, Duran Farm, Edai Town and many others still under planning, all of which have opened interesting opportunities for the insurance industry. Meanwhile, as new developments spring up across the country more and more citizens are insuring their assets against natural disasters such as fires and earthquakes.Thanks to the growth in PNG’s real estate market, along with the government’s initiatives to increase private spending, the home insurance and insurance industry in general is growing at a rate of 12% per year as more and more citizens insure their homes. The recent real estate developments will only increase demand from home insurance seekers, while inadequate public healthcare services are also expected to increase demand for private health insurance in PNG.Considering the presence of rising healthcare expenditure, the country’s personal cover and health insurance sector is expected to increase by 3.9% for the next five years.According to Bima’s Country Manager, Simon Schwall, the three most popular forms of insurance in PNG are car insurance, health insurance and life insurance. The nationwide Micro-bank launched MiLife in April 2013, an insurance package perfectly suited for low-income married couples.Insuring your life or assets is considered a precautionary measure against unforeseeable risk – in case an unfortunate event affects you, your assets or your family. Insurance helps you manage the event and limit its damage on your health and your assets. For example, when a person passes away and he or she is covered by life insurance, the family members are entitled to receive funds to deal with the death and funeral costs. Health insurance may also cover hospital costs in case you have an accident and need to go to the hospital for several days, incurring costs and/or lost revenue. However, every insurance company has a different package.The same concept applies to home insurance. There are more and more Papua New Guineans who tend to insure their homes. This is only natural – as many have seen their property burnt or damaged by an earthquake. There are different levels of coverage that one can apply to his or her assets; some only insure their homes for fire damage, while others prefer to apply for a complete home insurance against any damage possible.“The idea in general is to make sure you will be helped financially when you or your family needs it the most. It helps you go through difficulties and maintain the same quality of life even when facing a problem,” Schwall said.Estimate the value of insuranceIf a person was to save K10.8 per month in a piggy-bank to cater for haus krai and funerals, it would take more than 90 years to gather K12, 000 (K10.8 x 12 x 90 = K11, 664).With life insurance, one can pay the same amount (K10.8 per month) and his or her family will receive K12, 000 already on the first month of cover in case of an unfortunate and damaging event.“If you really care about your loved ones, then you should spend at least a few kina every month on insurance. It would be selfish to rely on the generosity of others when accidents happen,” Schwall commented. He also added that providing insurance in a young nation like Papua New Guinea was difficult, adding that Insurance was intimidating even in countries like the United States, Australia or New Zealand.There is no doubt that Papua New Guinea is a young country and that insurance penetration is low. But it is clearly growing fast as more and more Papua New Guineans realize the benefits of insuring their assets, securing a bright future for the entire nation.To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

With the government’s call to provide more affordable housing to cater for the growing number of people in major towns and cities in Papua New Guinea, a leading property developer is determined to develop and lease houses at very affordable prices to meet housing demand in Port Moresby.Glory Development Ltd is a locally established property developer based in Port Moresby. It focuses on developing and leasing out new quality homes that meet the life-style needs of the PNG tenants.According to marketing manager Claire Lee, Glory Development Ltd is looking at developing and leasing out 500 residential units. There are different types of affordable housing catered for middle to high income earners and are made of durable building materials like concrete blocks, ceramic floor tile and aluminium sliding windows.Skyview estate development is divided into different phases. The first phase of the project was already constructed. It has four models including link houses, stand-alone high and low-set houses, stand-alone double storey luxury houses to suit different market needs. All the link houses come with standard amenities such as bathroom basin with cabinet, shower screen, kitchen sink, kitchen cabinet with benchtop and solar heater water system.There are eight link houses in a portion so we have a total of 112 link houses, of which 13 link houses are currently available for lease. Prices of the residential properties range from K400 000 – K700 000 depending on the quality.“We want to help our clients that really need a house. We are offering 10 per cent of the total cost of a unit to secure the property.“All our units are for sale. Any client wishing to purchase one of the units can pay 10 per cent of the total price of a unit as upfront payment and secure the unit. Once all payments are done, we can formally release the property to the buyer. Market prices depend on the sizes and qualities of the units we have. Our units are of very high quality and they are ideal for corporate clients as our main target market. However, we do not necessarily restrict our properties only to corporate clients. Any client with sound budgets and good behaviors can buy the units,” Lee said.It was revealed that apart from constructing the residential homes, Glory Development Ltd will develop a mini town of at 7-Mile’s Skyview Estate.This means all recreational facilities, commercial centres including a market and ATM (automatic teller machine) will be installed, schools and a clinic will be built with other life entertaining services to cater for those who will be buying and occupying the residential houses.Meanwhile, the Glory Development Ltd hinted that it would work closely with the commercial banks to help facilitate the FHOS for any local clients wanting to own a house.“Any PNG client wishing to own a new house through the Government’s housing scheme will have to pay 10 per cent equity to reserve a house so we can send it to the Bank South Pacific (BSP) to further process their loans,” Lee said. Lee said once the loans were approved and processed by BSP, clients can occupy one of the new houses. Under the FHOS, the Government in 2013 made available K200 million with the Bank South Pacific (BSP) for people to borrow and develop their own houses.The BSP criteria in implementing the policy include a minimum loan amount of K200 000, up to 40 years term of loan, fixed interest at 4% per annum, establishment fee of 1% of loan value, 10% equity, evidence of work and state lease title.

There's more to successful investing than choosing an appealing property. Property investment is a great financial move, however there are some associated risks.Check out our top 3 dos and don’ts before you make this large financial investment and meet with Ms. Angela Vinnicome from Cayman properties to take the first steps towards buying an investment property in Australia! Top 3 Dos1. Evaluate your income – All rental properties can experience vacancies from time to time, so be sure you can manage the costs of owning the property even when rental income isn’t flowing.2. Adopt a long-term mindset – The best gains on property are often made over the long-term – periods of five years or more. Holding your investment for shorter periods can mean racking up stamp duty, legal fees and agent’s commission, costs that will eat into any profit when you resell.3. Protect yourself – If a property is worth investing in, it’s worth insuring. Landlord insurance not only covers the value of your building, it can also provide protection for lost rent or damage by tenants. And the premiums can normally be claimed on tax rebate. Top 3 Don’ts1. Don’t assume your loan repayments are the only outgoing – Owning an investment property means facing a range of costs like rates, repairs, maintenance and insurance, so be sure to factor all the expenses into your budget before you begin.2. Don’t fall for cheap prices – You pay for what you get, right? Always aim for the best quality property you can afford. But, if you wouldn’t be prepared to live there, chances are tenants won’t either.3. Don’t make a decision without speaking to an expert – The loan you use to fund your investment can be just as important as the property itself. Cayman Properties can help you work out how much you can borrow and your likely repayments, and find a loan that’s right for you. Whilst many of these Dos and Don’ts apply to general property investments, there are further steps and analysis that a potential buyer needs to take into account when considering investing in a foreign country such as Australia. Australian Investment property may require additional planning when it comes to buying and securing your assets. Cayman Properties has been offering assistance since 2008 to all Papua New Guineans wanting to buy a property in Australia, more specifically in Cairns, Brisbane, Gold Coast and surrounding areas. Ms. Angela Vinnicombe, from Cayman Properties, will be happy to discuss Australian investment opportunities and meet interested Papua New Guineans in Waigini at the end of the month.If you would like to know more on how to make a successful investment and get the chance to make the first steps into property investment send your inquiry via our Australian Finance Form and contact Angela directly! Address:Holiday Inn Express, Islander Drive What will be discussed:How to buy property in QueenslandAll key QLD Locations – Cairns, Brisbane, Townsville, Gold Coast, Sunshine CoastNew homes and apartmentsFinance and loans arrangementsSolicitor arrangementsVisa assistance and proceduresRental management for your property if requiredAct now before the new $5,000 Govt Foreign Investor Charge will be introduced in December!To receive news and updates about New Developments, Free Land Titles News, Real Estate Trends and other programmes to help PNG home buyers, CLICK HERE to receive the Hausples.com.pg Newsletter!

Australia has always been an attractive place for those Papua New Guineans who want to move abroad. Its reputation for high living standards, education system, public transport and much more have made Australia the number one destination and many Papua New Guineans are planning to purchase a home in Australia, more specifically in Cairns for their family to live in and attend School or University at the start of 2016.However, potential buyers may need to speed up the purchase process before the Australian Government introduces the $5,000 Foreign Investment Approval Fee in December 2015. The Australian Government is bringing in new Foreign investment laws that will charge all Foreign investors an A$5,000 approval fee. This legislation will come into effect on 1 December 2015 which is just 4 months away. With this new fee, foreigner’s purchase costs on a $400,000 home will increase from approximately 5% currently – to 6.25%. So, if you are intending to purchase an Australian property this year, it will be safer to buy before the new law comes into effect and, therefore save on the surcharge imposed by the Government.“Under the proposed plan, all foreign real estate transactions on properties worth up to $1 million would be charged a $5000 fee, rising to $10,000 for properties over $1 million with an extra $10,000 for every additional $1 million in value”  said an Australian Newspaper recently.Whilst many PNG locals have already been in contact with several Australian Real Estate Agencies, such as Cayman Properties who advertise new properties for sale in Cairns, many others are still facing the doubts of moving from PNG to Australia. With the new law coming on in December, Cayman Properties and Mortgage Choice are helping Papua New Guineans to have a clearer view on the purchase process of a home in Cairns offering finance and legal services  in addition to properties for sale.If you are looking to move to Cairns over the next few months choose one of the new properties for sale and you can get your family settled in before the start of the school year in January 2016. Some of these homes will even be available to move-in as soon as early September, 2015 to avoid paying the fee coming on in Decemeber 2015.An example of a new home for sale in Cairns:

Last week, Charles Abel, the Minister of National Planning, announced a fund of K5 million to be used by the NCDC to commence major civil works on the planned housing and land program at Gerehu in Port Moresby. The full program, which is being coordinated by Department of National Planning under the Office of Urbanisation, is set to be launched in partnership with the Department of Lands and Physical Planning, National Housing Corporation, National Research Institute, Magisterial Services and the Civil Registry.Two pilot models are being implemented under this program: Gerehu 3B and Durhan Farm. Both models are expected to create 5700 serviced allotments. This equates to 14.25 per cent of the national target.Gerehu 3B represents the pilot project of the affordable Land and Housing Program embarked upon by the O’Neil/Dion Government. The program intends to make available 40,000 fully serviced land allotments over the next five years. This development program will be facilitated by the Office of Urbanisation.The cheque of K5 million that was presented to NCDC is intended to cover all initial capital necessary for the housing project’s engineering and road works.To date the Government has granted K11 million towards Durhan Farm through the NHC and, thus far, K3 million on Gerehu 3B.Out of the K3 million spent on the Gerehu 3B project, PNG Power and Eda Ranu have each received K1million respectively to begin their work, and another million was given to National Surveyor General to survey 1734 allotments and provide for all necessary titles to be issued.Already 269 public servants, drawing from 31 government departments and agencies, have been prequalified by BSP for up to K58 million worth of loans. These will be released under the first home ownership scheme. The Government has made available K200 million to BSP to issue 40 year repayable loans for citizens.The Government has also provided K1 million to each district administration, where Members and Governors are to reciprocate another K1 million, half a million each from the DSIP and PSIP funds, to build 10 houses per district for each district. This equates to 890 houses across the country.

BSP is committed to helping Small to Medium Businesses (SMEs) in Papua New Guinea grow and this is evident in the fact that more than 14,000 SME’s are using the bank’s Smart Business Account and have direct access to finance via the BSP Smart Business Loan.According to Dennis Konu, who heads the banks Smart Business Unit, since 2013, BSP has provided in excess of K40 million in loans to this valuable group of bank customers.  The Smart Business Loan product was introduced as part of BSP’s strategy to empower the large number of small to medium businesses in Papua New Guinea.“The product has generated considerable interest around PNG and is gaining momentum with over 800 loans funded. Despite the inherent risk associated with small business lending BSP has developed a process and criteria that suits the capacity of small businesses,” Mr Konu explained.The Smart Business Loan is accessible to registered SMEs that have traded for more than 12 months and use a business bank account. BSP extracts critical financial information about the business, from banking records to calculate how much the business can borrow. The loan is aimed at SMEs that may experience difficulty in meeting certain commercial lending requirements such as providing financial statements, or contributing equity and loan collateral.Owner of a local SME, Tapioca Delight, Ginia Siaguru, is a success story of the BSP Smart Business Loan product, which she used to purchase equipment that has helped her business grow.She says: “Looking for Small Business Loans can be challenging, but with BSP, having an established banking relationship helped me to further explore other options like opening a Business Account. It is through this Smart Business Account that has paved way for us to take out a Smart Business Loan.”Another success story, Rossica Salika, who owns Rossal (Tual Immess) Limited, a tailoring business in Port Moresby shares similar sentiments to Ms Siaguru. Rossica admits that it was difficult to seek additional finance to purchase new sewing machines to increase productivity. She had operated through her personal bank account. Things changed for the better, when she was introduced to the Small Business Package and Loan products.“The business was in operation for over 12 months, and my bank statements were easily obtained and supplied when I applied for a Smart Business Loan. BSP staff were helpful and assisted me in completing the application and ensuring all requirements were provided,” she said.Rossica used the Smart Business Loan to purchase two new sewing machines, hired two more seamstresses. Her business is growing. And with her business growing she is able to give local women an employment to “earn some money and support their family”.