Papua New Guinea Construction

China’s Belt and Road Initiative (BRI) is becoming one of the main drivers of construction activity in Papua New Guinea. Local media reported that China has overtaken Australia as the largest donor to the South Pacific region, pledging $4bn in 2017; however, the nation’s growing presence in the region has also raised some concerns.

The property market in recent years has been heavily influenced by extractive projects and, more recently, Papua New Guinea’s hosting duties as chair of the APEC forum in 2018. These have created a serious gap in supply and demand, which has affected prices.

Although a downturn in the commodity cycle, the end of construction on the Papua New Guinea liquefied natural gas (LNG) project and long-standing ambiguities over land rights have constrained development in the real estate sector, changes are afoot that could lead to significant improvements. About half a dozen major housing projects are now...

Although it recorded double-digit expansion during the boom years of 2010 to 2013, Papua New Guinea’s construction industry faces a challenging operating environment in 2017. Growth contracted in 2014 following the completion of a major liquefied natural gas (LNG) project, and contractors have since struggled to regain the momentum of earlier...

The business climate for real estate stakeholders in Papua New Guinea deteriorated in 2017, with rental rates at upmarket residential properties in the capital, Port Moresby, falling by as much as 50% since 2016. A macroeconomic slowdown and lower numbers of expatriate employees living in the country will weigh on growth in 2017, with agencies...

With demand for high-end residential rentals declining significantly over the past year, the affordable housing segment is a bright spot in Papua New Guinea’s real estate sector and holds high potential for development, particularly in Port Moresby.