The shortages of houses in towns and cities of Papua New Guinea (PNG) has reached a critical level that requires urgent attention, a Senior Research Fellow of PNG National Research Institute has warned.
In recent years, government departments and statutory organisations have rolled out numerous residential projects to alleviate their employees suffering from this housing debacle.
Furthermore, the private sector, through the superannuation industry, had initiated large private sector housing projects.
However, the number of houses constructed, whether by public or private sector, in an uncoordinated fashion is unlikely to have an impact on the total housing demand in the housing market.
Sustainable Land Development Program Leader Dr. Lindsay Kutan says the uncoordinated initiatives introduced by the government and the private sector has not been able to address the issues.
“As a result, a public-private partnership is needed to collectively increase the supply of houses to the housing market,” Dr. Kutan said in his latest research report: “The role of private sector in addressing housing shortages in PNG”.
“This partnership will enable the exchange and utilisation of the needed capital resources and technical expertise from the private sector to encourage growth in the housing sector.”
He said the private sector’s role is primarily the construction and supply of houses to the housing market.
The report also highlights the challenges faced by the private sector and provides recommendations regarding the support from the government that would enhance the effectiveness of the private sector to deliver affordable housing to all Papua New Guineans.
“On the other hand, the government should play a facilitative role to foster an enabling environment that will mitigate the challenges experienced by the private sector in addressing the housing shortages,” Dr Kutan said.