The recent earthquake that devastated Port Vila’s Central Business District (CBD) has triggered a wave of changes across the city. With many business premises damaged, companies are relocating to residential areas, leading to noticeable increases in property values and rental prices.
According to Port Vila Municipality Town Planner, Manses Fatdal, this shift is primarily driven by supply and demand dynamics.
“When businesses move out of the CBD into residential areas, property values in those areas are affected. With low supply and high demand, rental prices are expected to rise as the real estate market struggles to accommodate the surge in business relocation activities,” said Mr. Fatdal.
Businesses are taking the initiative to find alternative spaces to continue their operations. The municipality has allowed this temporary adjustment to support economic recovery during this challenging period.
“Most businesses are relocating on their own initiative, deciding what works best for them. This is a good sign because businesses need to move forward and stimulate the economy. We’ve also noticed small businesses setting up in residential areas, demonstrating resilience and adaptability,” he added.
The earthquake has undeniably reshaped Port Vila’s economic landscape. While the closure of the CBD has posed challenges, the relocation of businesses to residential areas is fostering new economic activities.
As the city rebuilds, the long-term impact of these changes on property values and rental prices remains to be seen.