Decline in property prices slows down
Property market prices in the second quarter of 2009 showed a slower rate of decline, the Central Bank said today.
It said the consistent downward trend in prices experienced since the first quarter of 2008 appeared to be moderating.
Based on its own index, the bank said that residential property prices fell by 6% year-on-year during the quarter compared with 9.9% in the first quarter.
On the other hand, the number of advertised properties monitored by the Bank dropped by 28.0%, exceeding the 21.1% decline recorded in the March quarter, indicating a further drop in activity in the market.
However, the number of building permits granted by the Malta Environment and Planning Authority in the second quarter was at the same level as a year earlier.
The largest drop in prices, of 12.7%, was registered by prices of maisonettes in shell form. Deductions of 6.9% and 6.4% in the prices of finished flats and flats in shell form, respectively, were also recorded, but these were smaller than those observed in the March quarter.
Moreover, the decline moderated to 3.7% and 7.2% for townhouses and houses of character, respectively.
Terraced houses continued to be the only category experiencing positive growth, with their prices registering an increase of 4.2%.
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peter fitzgerald
Nov 18th 2009, 21:25
Based on the rationale of supply versus demand factor i dont expect the prices of flats to increase, supply can be satisfied by increasing the height limitation. As for the demand for land/plots ownership which is in scheme, this is another story. What worries me is that land that for some reason or other becomes in scheme makes these owners instant millionaires. On what criteria does a plot of land become in scheme?
More worring is that our politicians are constantly and relentless being pestered by the powerful few to the detriment of the environment
Symond Shaw
Nov 18th 2009, 19:59
Down or not lets put it this way, as a foreigner residing on the island i will never invest in a property on the islands but would prefer to take long let, that way i am free to come and go as i please without the hasstle of selling, for a foreigner is not as easy they they make out it is. sorry but i learned my lesson, this also applies to other countries such as Spain where every Ton Dick & Harry seem to end up, at least Malta and Gozo are more select and why not i love the islands, but buying is definitly a No NO. The bureaucracy is something else, not easy, the only advantage in Malta is they the signing of contracts are in English and not in a foreign language, when one would need an interpreter.. ie., France, Spain, the Canary isl. etc., etc.,
Andrew Gatt
Nov 18th 2009, 16:11
Advertised prices are certainly not the way to monitor the property market. Actual SELLING PRICES and the NUMBER OF SIGNED PRELIMINARY AGREEMENTS/CONTRACTS are the only statistics that can be based on reality.
Any other estimates are guesstimates!
Tony Scicluna
Nov 18th 2009, 15:32
Once again. Statistics are being based on what is being advertised. This is nonsense. Although it is true that there was a decline in the drop, we must stop basing research and statistics on adverts.
Paul Barrett
Nov 18th 2009, 15:15
This is bad news whilst there are so many empty properties around which are still well over priced and thus shackling first time buyers to slavery for years to try and make payments.