A lot of people coming from overseas are always surprised at the high living cost of life in Port Moresby in particular for the most important things such as rent, internet access and grocery shopping.
Why is POM so expensive?
PNG POM Life says..
PNG does not produce a lot of food, relying heavily on imported goods, which results in higher priced goods on the shelves, due to additional costs such as transportation. If you like to buy exclusively imported food from overseas the cost will be much higher than if you were to buy locally.
In particular, items with a short shelf life such as fresh milk, cheeses, yoghurts or those requiring refrigeration, are significantly more expensive, because they are time sensitive, and need special transportation such as refrigerated containers, which need to be processed through Customs Inspection promptly.
It’s not only food, all electrical items, vehicles etc. need to be imported from overseas, and the final retail price is subject to importation fees, duties and customs taxes, profit margins, costs of running business etc.
Online shopping is still not so common in PNG, as internet is still extremely expensive and slow compared to other countries like Australia, NZ, Japan, also costs of delivery to PNG are higher than to most countries globally.
Despite all these factors driving the high cost of imported foods, buying locally caught seafood, locally grown vegetable and fruits is crucial if you are determined to stick to a budget and help local community vendors, as they are significantly cheaper and taste great too!
Housing Rental Market
Rental prices are very high compared to equivalent levels of accommodation overseas, this is a combination of the following additional cost structures which are rarely experienced overseas such as:
- Security – electric fencing, guards, dog patrols etc.
- Backup Generators – Fuel, Servicing costs etc.
- High costs of utilities – Electricity, Water etc.
Costs of construction are high in PNG, due to high import duties on construction materials.
Many expatriates’ living costs are normally paid by their employer, so there is not as much negotiation happening and limited options drive the market price higher than it should be.
Tips for Saving Money in POM
・ Buy local fresh products at Fresh food markets or Super Markets.
・if you have gardening space you can make your own vegetable, herbs, fruits!
・Go fishing and try catching your own fish to eat.
・Go to Second-hand clothing markets to buy clothes.