The industrial city of Lae in Papua New Guinea is running out of land for residential and commercial development.
The Lae Chamber of Commerce and Industry told The National that the lack of available land is a major concern.
The Chamber president Alan McLay says the shortage is pushing up prices of developed land as well as rent.
Mr McLay says landowners have taken advantage of the shortage of land to register customary land and then lease it to companies.
He says it's causing social problems and could lead to disputes down the track.
Mr McLay says the lack of planning by the government to resolve the problem and to free up more land is a major handicap to the development of Lae city.