Construction & Real Estate
From The Report: Papua New Guinea 2019
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Papua New Guinea’s hosting of the 2018 APEC Leaders’ Summit proved to be something of a catalyst for the construction sector. Although the authorities had to mitigate the shortage of high-end hotels in the capital city by hiring cruise liners to accommodate international delegates attending the event, a host of construction projects were launched to meet the other infrastructure needs of the summit. Similarly, while the completion of PNG’s flagship liquefied natural gas project, PNG LNG, in 2014 ended the boom witnessed in the real estate sector, the momentum provided by increased construction activity between 2008 and 2014 continues to support the market. The commercial real estate sector in the capital Port Moresby has undertaken some notable projects in recent years. Meanwhile, a number of housing projects are under way, and a culture of homeownership has taken hold. This chapter also contains an interview with Ken Richardson, General Manager, Strickland Real Estate.

Articles from this Chapter

Overview

Prime mover: Public works projects continue to accelerate sector activity
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Papua New Guinea’s hosting of the 2018 APEC Leaders’ Summit proved to be something of a catalyst for the construction sector. Although the authorities had to mitigate the shortage of high-end hotels in the capital city by hiring cruise liners to accommodate international delegates attending the event, a host of construction projects were launched to meet the other infrastructure needs of the summit, such as the PGK120m ($36.4m) APEC Haus. Officially opened in October 2018, the modern glass and…

Analysis

Margin of preference: New law grants exclusive rights for citizens and government- owned companies to bid on public contracts
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In September 2018 the Parliament passed the National Procurement Act (NPA) 2018, which abolished the Central Supply and Tenders Board (CSTB) and replaced it with the new National Procurement Commission (NPC). The decision dissolved the public procurement framework previously set out in the Public Finances (Management) Act 1995. Under the new act all public procurement contracts with a value of over PGK500,000 ($152,000) are to be undertaken by the NPC. Local Content The new law gives citizens…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
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From 206 BCE to 220 CE China’s Han dynasty fostered a booming trade industry for silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time as well, transmitting knowledge and expertise across distance and cultures. Rapid economic expansion in China in the four decades since Deng…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
OBG
plus

From 206 BCE to 220 CE China’s Han dynasty fostered a booming trade industry for silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time as well, transmitting knowledge and expertise across distance and cultures. Rapid economic expansion in China in the four decades since Deng…

Interview

Expanding options: Ken Richardson, General Manager, Strickland Real Estate, on leveraging middle class growth to ensure sector competitiveness
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Interview:Ken Richardson What impact do fluctuations in global commodity prices have on the Port Moresby real estate market? KEN RICHARDSON: Papua New Guinea is fundamentally a commodity-driven market. Most of that activity is not centred in Port Moresby, although developments in agriculture and other commodity sectors will increase consumer confidence and investment in the capital. Buyers have been reluctant in the past few years, and it is not unrealistic to believe that rental and sales…

Overview

Addressing needs: While affordable housing projects are under way, broader efforts are required to stimulate the market
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Although the completion of Papua New Guinea’s flagship liquefied natural gas (LNG) project, PNG LNG, in 2014 ended the boom witnessed in the real estate sector, the momentum provided by increased construction activity between 2008 and 2014 continues to support the market. The commercial real estate sector in the capital Port Moresby has undertaken some notable projects in recent years, including the Nambawan Super Plaza and the PGK250m ($75.8m), 23-storey Noble Centre, which is expected to be completed…

Analysis

Higher standards: Policies aim to formalise housing and improve quality of life
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While some debate remains about what constitutes the middle class, largely because the average incomes and standards of living vary considerably in different parts of the world, experts are in agreement on some basic characteristics: in general, the middle class has more disposable income than the poor, which is defined by the World Bank as those living on less than a $1.90 a day. In most developing countries, the rural middle class are typically local entrepreneurs, rather than farmers. Comparatively,…

Overview

Room to manoeuvre: The hospitality sector is expanding and evolving to support growing numbers of international travellers
OBG
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Aided by easier and cheaper travel, global tourism has experienced two decades of almost uninterrupted growth. According to the World Bank, the number of international departures more than doubled between 1997 and 2017, from 687m to 1.57bn per annum. With the global middle class estimated by the US-based think tank Brookings Institution to be expanding by as many as 160m people per year until 2021, it is perhaps unsurprising that almost half of the growth in tourist numbers was accounted for by departures from lowand middle-income countries, which increased from 121m in 1997 to 564m in 2017. Significant growth was also recorded in the number of…

Overview

Room to manoeuvre: The hospitality sector is expanding and evolving to support growing numbers of international travellers
OBG
plus

Aided by easier and cheaper travel, global tourism has experienced two decades of almost uninterrupted growth. According to the World Bank, the number of international departures more than doubled between 1997 and 2017, from 687m to 1.57bn per annum. With the global middle class estimated by the US-based think tank Brookings Institution to be expanding by as many as 160m people per year until 2021, it is perhaps unsurprising that almost half of the growth in tourist numbers was accounted for by departures from lowand middle-income countries, which increased from 121m in 1997 to 564m in 2017. Significant growth was also recorded in the number of…