HIGH RENTAL FORCING TAX PAYERS INTO LAE’S SETTLEMENTS

Recent ethnic clashes in Lae’s settlements have triggered a growing interest by the public.

Amidst the recent fights, Lae residents say the high cost of living in the city has caused more people into settlements.

Mus Property- Bundi camp

High costs in rental in the suburbs’ have forced taxpayers to settle into settlement to escape the sky rocketing prices of goods and services.

While Lae is also seeing economic boom, much of it hasn’t benefited the lower-middle income earners, who still struggle.

Last year, in a serious of stories I did on High rental costs in Lae City, I interviewed, Entrepreneur, Mus Palang who lives in Bundi Camp in the outskirts of Lae.

Palang has for the last several years provided affordable accommodation to a wide range of people working in Lae.

“I have even Managers living in the settlements,” he says.

Mus Palang is one of many that have gabbed the opportunity to make a significant amount of revenue through providing cheaper rental alternatives.

But while, most following the series of stories called for regulation of the real-estate market. Experts say it isn’t possible at this time.

Professionals Managing Director, Mike Quinn, operates the real estate giant says the housing market can’t be regulated.

Expensive Housing

He says because demand is high for houses, the rent will keep going up, with mining projects coming up in Bulolo.

More land has also got to be freed up by Morobean Landowners to build more housing.

But, many have suggested the Nation Housing Corporation build houses to dilute the market.

Mus Palang

Minister For Housing, Paul Izikiel says he will sell houses owned by NHC to generate income, for the corporation.

By far the NHC is the only hope Lae residents have.

Whilst, this may be good for only a hand full of people, the majority of middle-income earners, still live

on the fringes of settlements or within one.

These are taxpayers; the fact is they are productive people in the country’s economy. But, they live in these areas known as settlements.

These settlements’ are located, often on customary land, leased out in agreements between tenants and landowners, valid for a certain number of years.

These are groups who claim that they are legal settlers.

Now as these “taxpayers” live in these settlements, there are also those who came to Lae looking for opportunities, because of the growth of the city into a vibrant industrial hub.

The “opportunity seekers” are often unlucky with their prospects and end up living with relatives or floating in these settlements.

According to Lae Metropolitan Superintendent, Iven Lakatani, it’s these individuals that cause a lot of problems for communities, when they take alcohol or marijuana.

The spikes in Lae’s settlement clashes are attributed to the monotonous alcohol and drug problems and even domestic issues that escalate into full-blown fights.

Lae City is surrounded by settlements, from Papuan compound (Tais), Bumbu, Busurum, Busu, Back Road, Bumayong, East/West Taraka, Kamkumung, Naweab, Bundi Camp, the Miles areas’ and back to Papuan compound.

These settlement areas are filled with affordable accommodation at rates of 100 hundred kina to a thousand kina a month (K400-K1000), for those who can’t afford the houses in Lae suburbia, K3000- over 10,000 a month.

So while clashes and other social problems are a risk to those “taxpayers” who chose to live in settlements, so far, it’s the only choice due to the high cost Housing rental in Lae.