Papua New Guinea’s construction sector is closely tied to its extractive industries. This is in part due to the substantial contribution of extractives to the country’s economy, accounting for around 28% of GDP in 2019. The performance of extractives also dictates access to foreign exchange (forex), with the segment representing roughly 94% of exports that same year. PNG’s construction sector relies heavily on imported materials, thus access to forex is crucial to avoid project delays.…
Construction & Real Estate
From The Report: Papua New Guinea 2020
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The government has demonstrated notable early enthusiasm to boost the ease and transparency of land ownership processes, which should stimulate activity in the construction sector. Recent years have seen the industry hindered by vulnerability to foreign currency shortages, limited availability of land for development, a lack of transparency and insufficient human capital. Ongoing efforts to improve road connectivity and affordable housing supply are also poised to provide steady demand for construction around urban areas, before expanding outwards into rural communities. Housing availability is indeed a pressing issue, especially as real estate prices have been driven up by the limited availability of land and high cost of construction. The government has prioritised this issue and shown its commitment to improving the supply of basic utilities to support developers and local communities. There is also potential for both affordable and high-end developments to be buoyed by large-scale extractives deals, which would increase demand for property and provide trickle-down benefits for the wider economy. This chapter contains an interview with Brian Hull, Executive Chairman, Century 21 Siule.