Monday, January 11, 2010

Brighter outlook for quality residential in Port Moresby

Signboard at Harbour City

Work on the ‘The Edge’, Harbour City, on Sunday.Pictures by MALUM NALU

‘The Edge’ with Ravalien Haus in the background

Another view of work on ‘The Edge’

Nasfund has recently committed with Curtain brothers to the biggest apartment construction in Papua New Guinea history.

Based on a 70-30% split, 63 luxury apartments will be constructed at Harbour City next to Sol Wara Apartments owned by Nasfund.

Known as “The Edge”, these apartments will butt the sea, looking straight down Fairfax Harbour and the Yacht Club.

The complex will rise six stories (one more floor than adjoining Sol Wara apartments) and is designed in conjunction with the recent constructions along the archipelago.

“That is, Nasfund has ensured that the development fits within the scale of the landscape,” according to Nasfund joint chief executive officer Rod Mitchell.

“We were very conscious that Harbour City displays a modern yet understated feel: - that instead of breaking the landscape, the buildings merge within the landscape.

“Our aim is to turn Harbour City into a showcase of modern subtlety that lifts the image of Port Moresby and demonstrates the growing sense of a confident nation.

“We are very fortunate that Curtain Brothers share these values as we build a legacy for the 21st Century.”

The land site covers 6,914 sq m.

At K2, 000 per sq m, the land cost is just under K13.8 million.

The gross floor area covered by the 20 x 2 bedroom apartments and 43 x 3 bedroom apartments including balconies is 14,355 sq m with ground level under cover parking for 126 vehicles taking up a further 2,085 sq m.

Total cost of construction will be K7-8, 000 per sq m with an anticipated yield of 12%.

Construction time is expected to be 24 months with a completion date of March 2012.

Mr Mitchell said demand for premier accommodation remained high in Port Moresby with aid agencies, diplomatic missions and senior executives chasing a shortage of upmarket quality apartments.

“Nasfund has taken the view that the complex will be taken up quickly, either by large multinational companies, embassy staff, or aid agencies,” he said.

“If Nasfund fails to secure large immediate tenants, we will aim to entice existing tenants from upmarket locations currently on Touaguba Hill and adjoining Paga Hill down to the water’s edge.

“Research suggests that a new residential complex tends to attract people from existing older complexes looking for an upgrade.

“Add the fact that ‘The Edge’ will sit on the water’s edge over looking the Yacht Club, Fairfax Harbour and 100m walking distance to SVS Foodland, we believe ‘The Edge’ will become the most-desirable address in the country.

“Rental prices remain tight at the upper end.

“High covenant accommodation going for K3, 500 – K4, 000 per week a year ago is now ranging from K5, 000 to K6, 000 per week.

“This trend should continue for the next few years until increased supply comes closer to meeting demand.

“2010, however, will be a year of shock to many tenants, as rental renewals at the upper end will increase by up to 20%.”

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