NHC takes action to address housing affordability crisis

The escalating costs of housing, including both property sales and rentals, alongside the chronic shortage of supply, have emerged as pressing concerns for average and middle-income Papua New Guineans.

These challenges are severely impacting the standard of living, particularly in urban areas such as Port Moresby and Lae.

To tackle these issues, the National Housing Corporation has set its sights on making housing more affordable for all citizens. The NHC is in the final stages of reviewing the National Housing Act, with consultations already held in four regions across the country. The fifth and final national consultation was concluded in Port Moresby last week.

Access to affordable housing in PNG is hindered by several factors, including a limited formal housing supply, high real estate prices, and challenges in accessing both land and financing. Rapid urbanization and a growing population in informal settlements have only worsened the situation.

In particular, the lack of affordable and quality housing, coupled with soaring prices in both the purchase and rental markets, has made homeownership and rentals out of reach for many, especially low-income families. The real estate market’s inflationary trends are further exacerbated by the increasing demand for urban housing, putting even more pressure on the average citizen’s ability to afford a home.

In response, the National Housing Corporation has reviewed the outdated National Housing Policy of 1994 and developed a new comprehensive housing policy, the Papua New Guinea National Housing Policy 2023-2033. This policy aims to ensure adequate, quality, and affordable housing for all citizens.

Following a series of regional consultations and drafting processes, the NHC is now focused on finalizing the National Housing Corporation Act. According to NHC Managing Director Abel Tol, the final draft of the Act will be submitted to the National Executive Council and the State Solicitor’s Office for review after the ongoing national consultation.

“It is critical to ensure that all elements are included in the policy before it is taken to Parliament,” Tol said. “This consultation brings together a wide range of stakeholders to ensure we have a policy that works for everyone in the housing sector.”

Tol emphasized the need for a balanced, inclusive approach, engaging diverse perspectives to create a regulatory framework that addresses the complexities of the housing crisis, including affordability, accessibility, and sustainability.

As part of the consultation process, stakeholders from across the housing sector including government officials, developers, and the public are being invited to share their views. Tol underscored the importance of ensuring the voices of all citizens are heard, including marginalized groups such as people with disabilities.

“Engaging stakeholders is crucial. It ensures that the policy we develop is inclusive, representative, and well-informed,” Tol said. “This open dialogue helps us understand the challenges we face in making housing affordable for everyone.”

Minister for Housing Dr. Kobby Bomareo reiterated the government's commitment to addressing the housing challenges in PNG, stating that the national consultation was an important step in making affordable housing a reality.

“Our collective efforts are vital to turning the dream of affordable housing into a reality for the people of Papua New Guinea,” Minister Bomareo said. “The contributions from all stakeholders during this consultation are deeply appreciated. Together, we can drive forward the vision for a more accessible and affordable housing sector.”

Bomareo’s remarks also called for a collective action to tackle the pressing issues of housing affordability, urging all parties to play their part in creating a more inclusive and sustainable housing market.

Once the NHC Act review is completed, the government plans to regulate housing and rental prices, which have long been a source of concern for the public. However, NHC Managing Director Tol clarified that while the NHC is responsible for housing development, the regulation of prices will be handled separately through an additional bill.

“As a housing provider and developer, we can’t be both the referee and the player,” Tol explained. “We are working on a separate bill that will address price regulation, running parallel to the review process of the NHC Act.”

With this dual approach, the government aims to ensure that the housing sector becomes more affordable and accessible for all Papua New Guineans, addressing the critical need for reform in this area.