“Although real estate capital markets are constricting, they are still open for business, investors are still buying high-quality properties, lenders will continue to lend, and companies should move forward with cautious optimism through this current cycle and prepare to adapt to quick market changes.”
– Byron Carlock, Real Estate Leader for PwC US
Whilst some employers are allowing their employees and staff to work from home, many are still keeping their office spaces either in case they need their offices in the future or because they don’t want to break their leases.
Locally, this will mean that landlords will offer flexibility for shorter term leases, converting short-term or flexi office spaces to suit market needs and prefer long-term corporate leases.
As the new year begins and budgets for households tighten due to beginning of year commitments such as school fees, tenants in Port Moresby are seeking centrally located properties to enable access to schools, health care, shopping centres that are affordable.
View market trends in Port Moresby here.
With vacant properties, we are finding that landlords are willing to secure groups of tenants for long-term leases to increase occupancy rates, with some returning to pre-Covid rates due to increased demand whilst others have adapted to normalizing rates from the new normal.
