The National Government through National Housing Corporation (NHC) has not been able to build more houses to cater for the general housing needs of the country.
The Housing Stock has been reduced since 1986 through Government Give Away Scheme and Government Sell off Scheme and other 6 Schemes.
Every year this is reduced further with current tenant Sell Off or directs Cash Sale. Furthermore, all the Government Flats and Hostels are run down and no replacement undertaken.
Even the Government approved Public Housing Scheme starting with Duran Farm and other selected sites has been under controversy due to funds allocated by National Planning and Monitoring Department been stolen and misappropriated by a supposedly graduate in Building and Architecture and MBA in two weeks.
Despite the public service failure with stealing by private sector, the private sector went into housing overdrive in the hope of PNG LNG and the Australian Police Engagement etc.
Most are now converted into office space and many middle to high rental units are not tenant or partially rented out.
Those other would be real estate developers also bought land and run down former NHC properties and redeveloped for the supposed boom.
New housing estates and rental accommodation are now affected as these were not building for the higher than NHC rental rates of K300-600 per fortnight.
Housing prices has gone down since 2015 so those dealing with property should now consider your mortgage issues.
Appears that those renting out properties would have issues with Tenancy and not many taking up rental rates of prior years.
A report released by NRI appears to be going down whilst Land and Housing package for 3-4 bedroom houses are still going at more than K500,000 today when it has actually gone down.
If you get a loan in the hope of renting out the property, it’s time to ensure you get proper advice including valuation as you may not be able to finance the mortgage.
In the meantime, government should reduce tariff on building materials so that prices can go down further so people can build or buy houses as NHC and State are not able to increase public accommodation and housing stock.
There is likelihood of loan or mortgages defaults and be cautious committing yourself when it’s on decline.
The individual and private sector come in but it’s more expensive than K180 fortnight for three bedrooms with NHC.
In the absence of NHC they took their rates to say K2, 000 per fortnight or more but who can afford and those needing it have winded down operations.
It’s going kill them or start rearranges their mortgages to K500 or less fortnightly etc. – Via Garamut News.
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