Housing no longer just shelter: Yala

Caption:  NRI director Dr Charles Yala

By MATTHEW VARI

Sunday, December 6, 2015 (Sunday Chronicle, PNG)

THE remarks were made by National Research Institute Director Dr Charles Yala when referring to titled housing as a contributor to national wealth of the country, during a seminar presentation by housing developer South Pacific Homes last week.

He said the conservative premise of housing as just shelter was now more than that in terms of the value proper planned and titled housing that tend to accumulate value over time.

“If you talk about housing as just a shelter, you do not need to teach Papua New Guineans how to build a house,” Dr Yala said.

“But if you are going to talk about housing as an asset, then the land must be properly planned and must have all the infrastructure like water, sewerage, electricity in there.”

“Then there must be a title and the building must be approved by a building board- only then will a house become an asset and a shelter- so while you live in it, it also accumulates value over time.”

He raised the example of the Taurama valley situation where houses were built without pertaining to proper planning and titles.

“A perfect example is that of the Taurama valley where all those houses were built down at Taurama valley had no titles so those houses are only good for sleeping.”

“They are no different to houses in the village. The houses at the other established suburbs like East Boroko and Korobosea have title so there is value in those.”

He added that with initiatives taken by the government through its K200 million loans program with BSP. And with the inclusion of housing developers entering the country, the institute had also embarked on looking at other areas to address the issue of affordable housing in the country.

“The government has taken initiatives like the K200 million to BSP. We also commissioned a scoping research to help us see how we can facilitate this role for the next 5 years.”

“We at the institute are very clear with Treasury (Department) to promote the private sector to play an active role in the housing and land market.”

“We are working with ICCC (Independent Consumer & Competition Commission) to come up with code of conducts for real estate agents and property developers.”

He added that an asset house was one that has a title, built structurally sound, approved by a building board, all of which require cost and money.

“So at the end it gives you an asset- otherwise it just gives you a shelter. We are here to help shape the ideas that lead to Papua New Guineans building assets that they can retire to and give to the next generation.”