Illusion of lower property prices

One of the main reasons given by the Prime Minister for the so-called "rationalisation" of the development zones was a "social one". Lawrence Gonzi said that the extension of the development zones should bring property prices down and thus make property more affordable to young couples. The Prime Minister's claim, if not a smoke-screen or a damage-limitation exercise, can only be described as an illusion.

How can property become cheaper when the same government sends its own architect to evaluate all properties sold, even months after the contract of sale has been concluded.

And if the government-appointed architect's valuation is higher than the selling-price of the property as shown in the contract of sale, both seller and buyer will be made to pay the extra stamp-duty on the difference, plus a hefty penalty to boot! I also understand that the government-appointed architects normally add on a percentage each year on the market price of the previous year.

How can property prices then become more affordable?

We have come to a situation where a developer who may have a truly social conscience, or one who prefers to make a smaller profit for a quick sale rather than opting to sell at the current market value, which may take much longer and be more risky, is being hampered by the same government policy which punishes anybody who offers lower property prices, thus making property more affordable!

And yet we are being expected to believe that this same government wants property prices to come down! Besides, of course, the higher property prices go, the higher will be the government's income.