NRI calls for regulatory body to curb high rental costs

A senior research fellow at the National Research Institute [NRI] says Papua New Guinea lacks a dedicated regulatory body to curb the high rental fees currently being charged by real estate agents and private landlords.

Dr. Lindsay Kutan of the nation’s leading think-tank said the government must intervene immediately, specifically to increase housing stock for public servants who are being priced out of the urban market.

Dr. Kutan said rental rates have far outpaced the average fortnightly wage, leaving many Papua New Guineans unable to afford formal housing. He said middle-income earners are the hardest hit, while many private-sector workers are being forced into low-cost rental rooms and informal settlements in urban centers.

"Although housing is not a condition of employment in PNG, the issue requires direct intervention from the government," he said.

He suggested the most effective approach to the housing crisis is a combined partnership between the state, the private sector, and all relevant stakeholders.

The NRI previously used its August 2022 Spotlight publication to urge the Independent Consumer and Competition Commission [ICCC] to regulate the real estate sector. However, follow-up inquiries by NBC News revealed that housing and rentals do not fall under the ICCC’s current legal jurisdiction.

In a bid to address the deficit, the National Housing Corporation [NHC], under the Ministry of Housing and Urbanisation, has introduced three critical policy documents, marking the first major legislative updates in over 30 years.

These include the National Housing Policy 2023–2033, the Revised National Housing Corporation Act 1990, and the Updated NHC Corporate Plan 2025–2030.

Housing Minister Dr. Kobby Bomareo highlighted these reforms during a Ministerial Statement to Parliament during the November 2025 sitting, framing them as the roadmap for providing affordable housing to the nation’s workforce.