Evaluation of Affordable Housing Program in Papua New Guinea: A Case of Port Moresby
Abstract
:1. Introduction
“housing reasonably adequate in standard, and location for low or middle income households and does not cost so much that a household is unlikely to be able to meet other basic needs on a sustainable basis”.[20]
2. Affordable Housing Programs in Papua New Guinea, Singapore, and Australia
2.1. Government Housing Schemes
2.1.1. First Home Ownership Scheme
2.1.2. Social Housing Program—The Duran Farm Housing Development
2.1.3. Two Million District Housing Program
2.2. Private Sector Participation in Provision of Housing in Port Moresby
2.2.1. Edai Town Development Limited
2.2.2. Glory Group of Companies
2.2.3. Curtain Brothers
2.3. Affordable Housing in Singapore
2.3.1. Sales of Housing and Development Board New Flats
- The applicant must be aged at least 21 years, a Singaporean citizen, and have a family.
- The monthly income of the household must be between 10,000 and 12,000 SGD.
- Single Singaporean citizens must be aged at least 35 years, and should have a monthly income of at most 5000 SGD. They are only allowed to buy a two-room flat.
- Singaporean–foreigner couples are only allowed to buy a two-room flat.
2.3.2. Maintenance of Housing and Development Board (HDB) Units and Estates
2.4. Affordable Housing in Australia
2.4.1. National Rental Affordability Scheme (NRAS)
- be an Australian citizen, have permanent residency or have Temporary Protection visa XA visa subclass 785 or Temporary Protection visa XC visa subclass 785;
- not own or part-own property in Australia or overseas;
- not have money in bank accounts, shares, or investments exceeding 87,125 AUD; and
- not have a household combined annual gross income exceeding 47,904, 66,228, and 84,552 AUD for one, two, and three adults, respectively, at the commencement of the NRAS tenancy.
2.4.2. Affordable Homes Program
- be a current Housing South Australia or Community Housing tenant;
- be aged at least 18 years and be a South Australian resident;
- not own or part-own any residential property or land;
- intend to be the owner occupier;
- meet the income and asset tests for the AHP; and
- not have a debt with Housing South Australia.
3. Material and Methods
3.1. The Study Area
3.2. Housing Development in Port Moresby
3.3. Data Collection and Analysis
4. Results
4.1. Affordable Housing Program in Papua New Guinea Compared to Australia and Singapore
4.2. Can Low-Income Households Access Houses Provided by Affordable Housing Program in Papua New Guinea (PNG)?
4.3. Challenges Associated with Provision of Housing by Private Developers in Papua New Guinea (PNG)
- -
- Financial constraints. The interviewees reported that commercial banks in PNG rarely comprehend the importance of project finance, and do not often provide loan facilities to private property developers.
- -
- Bureaucratic problems. There are a lot of bottlenecks in accessing housing loans through the FHOS from the BSP, which results in delays in the house buying process. In addition, there are often delays in receiving approval from customs officials for evacuation of imported building materials at the seaport. Building Board meetings are not frequent, which often leads to delay in the approval of relevant documents. These problems often discourage potential private property developers from investing in the housing sector.
- -
- Unsupportive policy environment. The current PNG housing policy is outdated and does not reflect realities in the country. In addition, the policy does not have enough legislation for regulating housing industry in PNG.
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- Capacity constraints. There are shortages of skilled labour in the house construction industry in PNG, and people that are available require more training, which contributes to the cost of building houses. Furthermore, the country lacks industry that could support large scale housing projects.
- -
- High cost of building materials, trunk infrastructure and land. Most housing building materials are imported and attract import duties (tariffs), which add to the cost of production. In addition, locally produced materials are often more expensive than the imported materials. It is the responsibility of the state to provide trunk infrastructure and services. However, there is often lack of infrastructure and services in some segments of PNG. This often compels private property developers to provide infrastructure, which is often a very huge investment. State-owned land, preferred by most private property developers, is almost exhausted, and access to secure customarily-owned land is difficult, which makes land for development very expensive.
5. Discussion and Policy Implications
Policy Implications
6. Conclusions
Acknowledgments
Conflicts of Interest
References
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Characteristics | Papua New Guinea | Australia | Singapore |
---|---|---|---|
Supply of land | Supplied by the state and community. Use of available land is not maximized due to the types of houses built. Houses are mainly single-family homes. | Supplied by the state. Houses are a mixture of multi-family homes with single-family homes, which optimizes use of land. | Supplied by the state. Most houses are high-rise and multi-family homes, which maximizes use of land resources. |
Housing affordability standard | This has not been developed. | 30% of household’s monthly income. | 30% of household’s monthly income. |
Households mainly targeted by affordable housing | Not clear. | Low-income and middle-income households. | Low-income households. |
Roles of public and private sectors | In theory, private builds houses and public facilitates. In practice, roles are mismatched. | The public play facilitating roles, whereas private build houses. | The public builds houses and provides an enabling environment. |
Provision of trunk infrastructure such as water, electric power, and sewerage | The public. But often delays due to bureaucratic bottlenecks means private sector may provide. | Public sector. | Public sector. |
Management of housing unit | Not clear. | Public. | Public or private, under supervision of public. |
Consideration of local housing needs | Targets mainly home ownership scheme but not houses for rent. | Targets both home ownership and houses for rent. | Targets both home ownership and houses for rent. |
Funding resources | Public funding, but not stable. | Public. | Public. |
Investment | Insufficient investment. | - | - |
Is affordable housing program orderly? | No. It starts with home ownership instead of houses for rental. | Yes. Starts from houses for rental followed by home ownership. | Yes. Starts from houses for rental followed by home ownership. |
Type of houses | Detached and semi-detached. No high-rise buildings. | Dominated by multi-family houses. | Dominated by high-rise multi-family buildings. |
Can low-income households afford houses under the program? | No. | Yes. | Yes. |
Salary Scale | Annual Salary | 30% Salary | 40% Salary |
---|---|---|---|
(PGK) | Per Month | Per Month | |
PS01 | 8290 | 207 | 276 |
PS02 | 8808 | 220 | 294 |
PS03 | 9724 | 243 | 324 |
PS04 | 11,370 | 284 | 379 |
PS05 | 12,617 | 315 | 420 |
PS06 | 14,505 | 363 | 484 |
PS07 | 16,229 | 405 | 541 |
PS08 | 18,192 | 455 | 606 |
PS09 | 21,051 | 526 | 702 |
PS10 | 23,782 | 595 | 793 |
PS11 | 26,989 | 675 | 900 |
PS12 | 30,907 | 773 | 1030 |
PS13 | 33,544 | 839 | 1118 |
PS14 | 36,285 | 907 | 1209 |
PS15 | 42,640 | 1066 | 1421 |
PS16 | 46,763 | 1169 | 1559 |
PS17 | 61,132 | 1528 | 2038 |
PS18 | 94,327 | 2358 | 3144 |
PS19 | 107,577 | 2689 | 3586 |
PS20 | 147,937 | 3698 | 4931 |
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Ezebilo, E.E. Evaluation of Affordable Housing Program in Papua New Guinea: A Case of Port Moresby. Buildings 2017, 7, 73. https://doi.org/10.3390/buildings7030073
Ezebilo EE. Evaluation of Affordable Housing Program in Papua New Guinea: A Case of Port Moresby. Buildings. 2017; 7(3):73. https://doi.org/10.3390/buildings7030073
Chicago/Turabian StyleEzebilo, Eugene E. 2017. "Evaluation of Affordable Housing Program in Papua New Guinea: A Case of Port Moresby" Buildings 7, no. 3: 73. https://doi.org/10.3390/buildings7030073