PNG Real Estate Survey

Hausples, PNG Real Estate Survey

This morning,  Alex Simpson attended the annual Hausples breakfast for the release of their Real Estate Survey for 2021.

It was a great turnout and the findings are promising for the real estate market. Obviously, 2020 was a challenge for the market due to the effects of COVID 19. However, the survey shows that confidence remains high in the market and this is very exciting for us at BCPM.

The Hausples survey found that, overall, there was a steady increase in monthly incomes compared to the previous year. Those earning between K4,000 and K8,000 have remained steady. However at the higher end of the spectrum, there have been small but significant gains for high income earners. 63% of people surveyed stated that “COVID had not had any impact on their employment” which is very encouraging.

55% of people continue to live as a traditional family unit of partner and children. However, the number of people living alone has skyrocketed to 18% from 1.25% which, again,  is a a very encouraging sign. It signifies that people are earning enough to be  able to afford to live alone.

The sales market has been on the increase since 2018. There has been an increase in the number of properties with a mortgage which is an indication of stronger property sales over the past 12 months. The rental market has decreased over the past four years which also is suggestive of a robust sales market.  Houses were still the most attractive property to rent at 51.65%, with apartments coming in at 41.76%. The demand for commercial properties declined this year which was no doubt due to COVID lockdowns. 77.17% of renters preferred to rent in NCD ahead of Momase at 13%. Within NCD, Waigani was the most popular.

In terms of the sales market, affordability still remains an issue. 48% of people surveyed considered the property market as very unaffordable. However, overall, the survey participants considered the market to be slightly more affordable than in previous years. The first choice for housing is still high set houses at 42.68%. Only 14.08% of people preferred a low set home.

If you would like to read more from the Hausples survey click on the link and download your own copy. Hausples puts a lot of effort into this survey and it produces some interesting and very encouraging results.