Decline in property prices slows - supply also moderating
The Central Bank's index of advertised residential property prices was down by 1.4%, year-on-year during the fourth quarter of 2009, as against the 2.5% decline registered in the third quarter.
The bank said that over the year, average property prices were 5.0% lower, reflecting the more pronounced contraction seen in the first half of the year.
"The relatively modest fall in the index towards the end of 2009 suggests that the negative trend in prices appears to have bottomed out and that the residential property market may be stabilising," the bank said.
It added that the available information also suggested that the drop in the supply of properties coming onto the market may also be moderating.
In the December quarter the number of properties advertised for sale in the bank's sample - an indicator of supply conditions in the housing market - dropped by 7.9% on a year earlier, following a 24.1% decline in the previous three months.
Meanwhile, the number of building permits issued by the Malta Environment and Planning Authority was down by 3.7%, year-on-year, as against a 38.9% drop in the previous quarter.
The bank added that during the December quarter, the prices of apartments - which make up over half the properties surveyed - were down by 0.5% on a year earlier, compared with the 4.0% drop reported in the previous quarter. Asking prices of maisonettes, which represent 18.1% of the properties monitored, shed 3.3%, following a decline of 3.8% in the September quarter.
On the other hand, the growth rate in the prices of terraced houses eased to 0.9% in the December quarter, while that of dwellings in the ‘others' category rose slightly, to 5.5%.
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R. Gauci
Jun 10th 2010, 23:00
It's true that property prices declined A BIT but what about the quality? The only properties that young couples are finding affordable (obviously after getting a bank loan) are tiny flats with no air at all except for a balcony or a small yard, the now famous gabubi.
Joseph V. Grech
Jun 10th 2010, 20:57
"The relatively modest fall in the index towards the end of 2009 suggests that the negative trend in prices appears to have bottomed out and that the residential property market may be stabilising," the (Central) bank said.
So the Central Bank considers that it is a ''negative trend'' if property prices go down!
How revealing....the Central Bank big heads are on the side of the speculators!
That is hardly surprising since enormous VESTED INTERESTS are involved in property. Who cares about young people having to buy excessively priced properties to get married? Certainly not this administration.
And now....we know....certainly not the top people at the Central Bank! Those chaps consider it is a ''negative trend if property prices go down'' SHAME.
J. Cassar
Jun 10th 2010, 10:38
The CBM index has serious limitations because it is based on ADVERTISED PRICES. We all know that bargaining is an essential element when buying property and the real fall in prices can only be known when we measure the actual sale prices. In any case, a correction in the property market is welcome news when one considers the 'unreasonable' increase in prices in the last decade.
J. Kirby
Jun 10th 2010, 11:30
We came to this country last year for our retirement and where hoping to invest in a small property on the island of Gozo, however we had second thoughts when checking the prices of the majority of availbale properties that we were interested in and also the fact that there is too much of red tape for a foreigner to invest not only here on the island but also places like Spain and Cyprus, Malta tend to lead tops for higher prices, i think for a young Maltese couple it would be wise to buy a small property at prices they can afford, but for us foreigners at least in my case i am not saying everyone , we decided to take a long let at a reasonable rent with no hasstle and No Strings attached, this way we can come and go as we please at any given monent, however after comparing prices in our case we decided to retire in Cyprus since it suited my pocket as yet touch wood haven't looked back since.
Doris Cutajar
Jun 10th 2010, 12:23
Yes in your case as a retired person it is wise as you say to rent as oppose to buy, but the problem in this country is that we tend to get some foreigners with read cash thus jeopardising chances for a Maltese couples who just started a family to buy, cause most property owners all they see infront of their greedy eys is the colour of money and don't give two hoots about our people, this is what i think.
C Cassar
Jun 10th 2010, 13:09
@ J. Kirby: Less red tape when buying a property as a foreigner in Malta than in the UK. It's a very simple process. The reason property is more costly that in some other countries you mention is the size/area of the country. There's very limited building space in Malta, hence the much firmer prices. It will always be the same, more demand than supply (for quality properties).
Mary Abela
Jun 10th 2010, 13:18
The only way i think for our people to be able to afford a decent place to live is to limit the amount of foreigners wanting to buy large farm houses with swimming pools and 5 bedrooms or whatever, and double the asking price for them. Simple, but some will say i know why spoil a habit of a life time as this will never happens.