Wednesday, 23 May 2007 2:38 PM
Rental boom may burst one day
The deputy Governor of CBSI, Denton Rarawa has told budding journalists who attended a workshop on economic reporting that journalist do have a role in warning citizens of economic impacts.
Mr. Rarawa then used the current rental boom in Honiara as an example of a bubble that may burst one day. Currently an executive home in Honiara can go for as much as SBD$15,000 per month.
The Deputy Governor is therefore implying that the rental boom experienced in Honiara is a short term phenomena and wants journalist to tell the public that they need to be careful with borrowing money from the commercial banks to build more houses.
The Deputy Governor indicated that the boom is likely to end when RAMSI leaves which may leave many landlords with without tenants as many cannot afford the current rental rates.
A participant from PNG told the workshop of a similar happening in Port Moresby when Australia police came to PNG, for four months rents went up and after the ACP police left, the tenants were left high and dry. Honiara is likely to see similar happenings when the RAMSI contingent leaves at the end of their term.