Developers meet PM: suggest measures to counter slow-down

James A. Tyrrell

Jun 13th 2010, 22:28

@Roderick Micallef. I actually suggested this years ago and I agree that it's a solution to the problem but as you say the Government would lose too many of their big money supporters if they went down that route.

@J Martinelli. As I understand it you're on permanent vacation in Canada so can I suggest if you hate the islands of Malta and Gozo so much why not button up.

Roderick Micallef

Jun 13th 2010, 15:40

Dear Government,
I have a suggestion which will solve most of the issues effecting this market, this suggestion will further stabilize prices, will make sure the empty and unused properties are sold first, the governemnt will earn a lot of money out of it and it will control the over development of Malta (unless it is already too late since Malta is literally a concrete jungle) and will also make the developers pay for their greediness. How?
Simple, the government should introduce a property tax UNLESS that property is being used, in other words if some one owns more then one property and those property units are not being used then the owner is liable to pay a tax on each property that is not being used. This will really be a win win situation to most of us with the exception of the developer which in return will make sure to control the development rate as otherwise the developer will have more empty property and subsequently pay more property tax.
However, I already know that the government will not take this action as otherwise the government risks of loosing a lot of votes and a lot of friends!

Jean-Pierre Aquilina

Jun 12th 2010, 19:38

so it's the site notices that have contributed to the slowdown. Hmmmmm.

A. Brincat

Jun 12th 2010, 19:06

Who will penalise developers for selling over priced property built with substandard materials to keep their costs to a minimum and at the same time inflating profits to abnormal levels?

Let us not forget a very important thing here. Most of the blocks of apartments are built brick on brick without any steel reinforcements. I know that the the chances of a major earthquake are remote in Malta. The probability of a major one in of one in between 40 to 60 years. However, if this were to happen today, these blocks of apartments will come tumbling down.

God forbid we are hit by one.

Simon Camilleri

Jun 12th 2010, 18:18

Why do developers object to notifying neighbours? Why do they want to gag objectors with the deposit of a bond? Are they so afraid of objections to MEPA? It seems they want the liberty to do whatever they want, wherever they please, with as little regard to others as they like.

Ivan Scicluna

Jun 12th 2010, 17:51

Do we really need these new properties or do the developers just want more money in their pockets? Can the government publish a public survey on available vacant property please?

J Zammit

Jun 12th 2010, 15:39

The PM will listen to these guys ... quite obviously.

Remember the 2006 rationalisation process when more land was opened up for development. At the time we already knew of the large number of vacant properties.

All our hopes are lost. The PM will succumb to Mr Developer ... one more time

Charles Massa

Jun 12th 2010, 15:29

Supply is still exceeding demand. So let us restrict future development

Michael Zarb

Jun 12th 2010, 14:06

Its hard for me to say this, but irrespective of the cost to the economy, a slow down in this sector is good news as far as I am concerned!

James A. Tyrrell

Jun 12th 2010, 14:06

Looking at this purely from a tourist perspective it's reaching the point where tourists are asking themselves why they are going to Malta at all. They have main routes closed off at the height of the tourist season. No matter where you go you are subjected to dust, noise and traffic disruption due to construction. The place is pockmarked with empty houses and apartments and half completed properties, which have not been looked at in years.

When you find a little piece of paradise like Hondoq on Gozo where you can relax and swim in the beautiful clear waters you hear that they are trying to develop it. You get the Gozo Ministry slapping themselves on the back because they are cleaning up the countryside whilst ignoring the fact that it was turned into a dump on their watch.

As for house prices for those of us thinking of retiring to the islands they are silly compared to other European destinations. I really feel sorry for the poor Maltese kids trying to make a start in life with their first home. And now developers want the Government to make it easier for them to build more!

p buttigieg

Jun 12th 2010, 13:45

During the Hondoq public hearing, GRTU;s vince Farrugia, was really upset because there were alot of gozitans against the Hondoq project, which he says is going to create alot of jobs for gozo. GrTU is all out in favour of this project.

Dr. Gonzi, if this project is being pushed forward by the developers and the GRTU, I strongly urge you to consider the people of qala that have been telling you for the last eight years that they do not want this project. Also please consider the thousands and thousands of objectors from gozo, malta and foreigners that have been saying that Hondoq should be turned into a park.

@GRTU the gozitans have lost alot of land with the excuse of work creation, places such as chambray, mgarr hotel, andar, atlantis, kempinski and I would like to ask one question. How many gozitans are working in these places?

We have been fooled before but not again.

a.sciberras

Jun 12th 2010, 13:42

YOU GREEDY LOT

ray sacco

Jun 12th 2010, 13:34

it is the prime minister who should make some proposals to the GRTU and it's member developers...........like sticking to the regulations and cover all working sites properly without bothering the neighbourhood with dust or to bother on not turning pavemants and roads infront of construction sites into rubble! and when advertising their property, they might care not to promote a room on the roof as a penthouse! slow down indeed............on your greed!

vincent a galea

Jun 12th 2010, 13:22

No one gets a prize for guessing that our Islands are SATURATED with EMPTY apartments!!!

With immediate effect PERMITS should only be issued for the building of VILLAS and SEMI-DETACHED HOUSES

But then who knows what the reasons are behind the building of unneccesary APARTMENTS!!!!

E. Azzopardi

Jun 12th 2010, 13:17

Developers must first and foremost have some respect towards the neighbours in the area.
We have had development in our area (Sliema) since 1998 and sorry to say, no respect was shown by developers. Dust, drilling and all sorts of noises even starting at 0600 hrs and not ending before 2000 hrs in summer, shouting etc, trucks and cranes blocking the streets sometimes without notice. When once I complained to them, two days later my car was scratch all along. I am not accusing them but I am not a moron.
Then when you try to do something about it, you find no help WHATSOEVER. I know what I am saying. NO HELP WHATSOEVER. This is unforgiveable.
I hope the four attributes of the new MEPA rules will not be thrown overboard.
Well, you have built more than you should have, haven't you?

Robert Agius

Jun 12th 2010, 13:10

Slow down welcome. Some people's greed is unbelievable.

a attard

Jun 12th 2010, 13:09

Rebuild the rundown areas – many areas can afford to go higher (not that more housing is needed anyway!) creating green areas around to compensate for the extra 2 / 3 stories (ALL WITHIN THE PRESENT OVER STRETCHED URBAN FOOT PRINT). That would keep you well in business. NO MORE BUILDINGS IN VALLEYS, FIELDS, GARIGUE OR WHATEVER IS LEFT OPEN....

D Delia

Jun 12th 2010, 13:07

It seems to me that these cheeky mega developers are trying to put their problems on the government's platter. They should realize that people can and only need one property to live in. It is useless to churn out rabbit warrens from older decent houses, when the supply is much greater than the demand. They should also realize that the building boom is long over and should try their luck elsewhere.

m pace 2

Jun 12th 2010, 12:59

Sur Prim the response is try and help the low income earners that they we get a least a chance to live ina decent place of living not renting on sky high prices like other devoloped countries helping their citiziens to lift the resources of income- the poverty is on the rise -try help

B Sant

Jun 12th 2010, 12:51

Dear PM
if you want to replace lost revenu from sales of property - tax vacant property - thereby you would be creating a more liquid market since ppl would not favour holding on to property beacuse it got a price
secondly keep in mind that any speculators in whatever investement are not protected or accomodated by the state. They do it at their own risk. Furthermore if their behaviour distorts the market they are the first to be controlled
UNLESS they dont contribute to the party's finances

E.Curmi

Jun 12th 2010, 12:38

Ghaliex jibqghu jwaqqghu u jibnu bl-addocc jekk il-propjeta taghhom mhix tinbiegh?
Biex imbaghad joqoghdu taparsi jokorbu?
Il- PM issuggerixxa li l- prezzjiiet iridu jorhsu iktar biex ibieghu? Jew ghal skapitu u l-egoizmu taghhom ibati l- gvern u l- poplu mieghu? Il flus ta' taxxi mitlufin il- gvern irid igibhom minn x'imkien.....minn fuq it- taxpayer!

G. Cutajar

Jun 12th 2010, 12:33

Mela l-ewwel imlew kullimkien bil-barumbari u issa jridu l-Prim Ministru jghinhom ghax il-bejgh qed jonqos!! U sadanittant minn fejn tghaddi hlief krejnijiet, gafef u x'naf jien u bini jaqa ma tarax. Mhux hekk sur kappillan!

G.Portelli

Jun 12th 2010, 11:57

Dear PM, stop all this non-sense, useless building of chicken apartments which are ruining our beautiful villages. Tell the developers to reduce prices and there will be no problem.

It is absolutely necessary to inform neighbors of what's going to happen in their vicinity. No one objects for nothing. All the developers want is to ruin everything.

J Micallef

Jun 12th 2010, 11:37

Din il-gimgha stess il-GRTU ga giet ikkundannata li qed tohloq kartels flok kompetizzjoni..... Kulhadd jaf illum il-GRTU xi track record ghandha u ghandi dubji kbar kemm illum tirraprezenta tassew lis-setturi li tirraprezenta ghax titkellem ma' min titkellem kulhadd vuci wahda li telaq mill-GRTU. Saqsu lil tal-hwienet mhux lili. Sa fejn naf jien il-ligi industrijali tghid li jekk l-organizzazzjoni ma tirraprezentax 50% tas-settur ma tistax tirraprezentah.

Joseph Caruana

Jun 12th 2010, 11:36

This is crap. I think developers should be fined for the damages they caused with the environment and selling sub - standard housing for high prices.

J.Tonna

Jun 12th 2010, 11:32

DID THEY MENTION LOWERING THE PRICES TO REASONABLE LEVELS SO AS TO ATTRACT MORE BUYERS???????????

G Darmanin

Jun 12th 2010, 11:30

"Developers have made a number of proposals to the Prime Minister to counter the slowdown in their sector, the GRTU, which organised the meeting, said."

And the big property agents in their magazines and during conferences always say that the sales of property is again picking up and that the prices will soon go up again. They have been saying so for the last 3 years mind you! Lil min taqbad temmen?!!!

Anthony Pace Gouder

Jun 12th 2010, 11:29

A SURE SIGN THAT THE MARKET IS SATURATED ! How about a change in the DEVELOPERS" ATTITUDE ! T

Their only concern is these so called LUXURY APARTMENTS, SKY-VILLAS ,Marine villages and sky-scrapers proposing a NEW LIFE-STYLE etc, etc. where each unit STARTS WITH a QURTER MILLION TAG ?????? to a REAL SKY-HIGH MAXIMUM !!!!!

Government -Contractors-Developers should team up and launch an NATIONAL ECONOMICAL SOCIAL HOUSING SCHEME for THE COMMON CITIZEN. It would be a great relief for many young couples, who are spending practically a lifetime paying their LOAN , and first time buyers . Its about time to set up A SCHEME for the re-habilitation of Empty Properties .

joe scerri

Jun 12th 2010, 11:16

After years of greed and speculation they are now feeling the pinch, tough. Revision of stamp duty is fine, how about revising (downwards) the obscene prices as well.

"Site notices to all neighbours in the vicinity is unacceptable; Frivolous 0bjections - a system must be introduced to curb such objections such as a bond deposited by the objectors upon filing of objection". What do you mean by this?

a.agius

Jun 12th 2010, 10:53

The adventure of the supply the garbage and get rich quick has reached the edge of the cliff.
Now the developers short term solution entails convincing the goverments to fork out incentives to enable the greedy to continue to ruin the skyline by the providing of construction jobs.
Better face the situation long term. So now that the developers have for these last upteeen years been overdeveloping (their own bank account to start with) it is time for them to find a more sustainable occupation.

Sergio Galea Vincenti

Jun 12th 2010, 10:41

This is grand... I would have expected that the core of the discussions would have been centred on how to avoid illegalities and the disruption due to developments in the summer months which grossly effect our tourism industry.

Above all, I would have expected a discussion on the state of the oversupply of newly developed properties which grossly go beyond the annual property requirements for the Islands.

I would have expected the announcement of an investigation on the financing practices which still allow developers to get endless facilities on properties which then end up stuck on the marketplace.

But of course, let's not rock the boat! Let's not query developers and those financial institutions who are steamrolling the tens of thousands of vacant properties! Where are the financial regulators and watchdogs on this matter?

We are then hunky dory in attacking residents whose rights are continuously trampled by a section of developers: i say a section because like in all sectors of the economy, there are developers who try and work in a professional manner and not adopt the cowboy attitude we are used to.

These are the concerns to consider before it's too late.

John Fenech

Jun 12th 2010, 10:34

It seems that the GRTU & the Developers are concerned ……that the trade is almost at a stand still. The incentives as suggested by the developer are the responsibility of all stake holders except…wonder of wonders the DEVELOPER!!

The first suggestion that come to mind is Dear Developer how about cutting down your profits in ratio to the present standard of living. Several buyers are passing the mortgage responsibility on to their children, since they are finding it almost impossible to meet the financial obligations within their life time!
If the developers agree to reasonable profits, than most of the thousands of unsold property will be off the books.

When ever the developer infringes the safety and pollution regulations the licence will be withdrawn for a stipulated period which will reflect the gravity of the infringement.

The building projects will be subject to a firm and irrevocable time frame which must reflect the neighbour’s requirement for a rational tranquil environment.

The transportation directly related to the building project must not cause inconvenience to the routine traffic flow and must not cause pollution of any form.
The cost, if any, of these requirements must not be carried by the prospective buyers.

albert leone ganado

Jun 12th 2010, 10:32

Speculation in building is one of the most obvious ways of trying to get rich quick Some shrewd speculators manage to hit the market at just the right time and create immense fortunes. As in other type of investment bubbles those who follow tend to get their fingers badly burnt.
One hopes that our economy is now reaching a stage of development and sophistication that we will start depending less and less on the building industry to generate economic activity. Already the normal justification that it generates jobs no longer holds true as more and more our building industry depends on foreign workers.
India passed through the same building speculation phase in the 90's when most investment went into speculative building ventures. After the bubble burst Indian investors turned to more sustainable investment in productive industry and high tech turning India into the economic power house it is now.
Let us wean ourselves from the building industry as soon as possible and turn our entrepreneurial spirit to the new economy based on innovation, ecofriendly industry, financial services and high tech and why not the creation of high quality living spaces.

Joseph Attard

Jun 12th 2010, 10:17

There is no need for incentives to boost the property market. The current problem is that there is an oversupply of inferior quality property.

They should stop building matchbox apartments. The market has shown that good quality property always sells, irrispective of recessions.

Darren J. Galea

Jun 12th 2010, 10:11

Haven't developers done enough damage to Malta with their greed, destruction and overdevelopment? Now they want officiallt sanctioned tax evasion and unfortunately Gonzi is just the type of politician to give it to them. Malta I pray for you.

J portelli

Jun 12th 2010, 09:58

Developers have runied the countryside and country. They employ low paid foreigners, who they often dont even pay. GRTU + developers = unchecked greed.

Paul Barrett

Jun 12th 2010, 09:58

Quote: Site notices to all neighbours in the vicinity is unacceptable; Frivolous 0bjections - a system must be introduced to curb such objections such as a bond deposited by the objectors upon filing of objection; Unquote.

MEPA have enough gumption to sort out and disregard frivolous objections but it is obvious that developers would very much like no objections and absolutely no prior knowledge of their plans - just turn up with the bulldozer/gaffa and destroy history/heritage for their own personal benefit. No notification and making objectors pay to register their observations would go a long way to giving developers absolute power.

C. Farrugia

Jun 12th 2010, 09:56

I must have missed something. Have developers seen the enormous quantity of empty housing stock in existence at present. Housing is not a mass market item and under normal circumstances one buys his house for a lifetime. Building and building and building just in the hope that somebody buys seems to me a tragic compedy. No wonder Banks have stopped lending for commecial housing. They know what they are doing.

albert leone ganado

Jun 12th 2010, 09:51

For me the solution is to stop issuing building permits for at leat the next 10 years.
We have enough empty housing stock to last us the next quarter of a century.
Developers should instead concentrate on
(i) Improvements in the existing empty building stock. Many buildings built in speculative times are simply unsaleable in their present state. Buyers are only willing to purchase housing which achieves a certain level of comfort and adheres to modern styles of living needs.
(ii) Investment in making our housing more ecofriendly,and reduce energy needs through proper insulation.
(iii) Concentrate on providing services to maintain and improve existing building stock. Most buildings in Malta need a good makeover especially facades.
Experience has shown that each time government tried to help prospective buyers the net result was an upward push in prices asked by sellers.
The truth is that given the current local wages and standard of living housing is overpriced by at least 30 per cent. Government should therefore not do anything which hinders the economic laws of supply and demand to bring down prices to sustainable affordable levels.

Martin Farrugia

Jun 12th 2010, 09:48

The construction and property development industry is one of the biggest contributors to economic growth, and, by proxy, the sustainability of the welfare state.

Therefore, it follows that if the Government intends to nurture further the economy of our country, and if the Government intends to secure the welfare state, including free education and health, et cetera, then the Government must do all that is necessary - as long as it is not against the law - to ensure that this sector continues to flourish.

Eric Psaila

Jun 12th 2010, 09:46

The first thing the government should do is to get the empty houses in Malta on the rental market. Mepa should stop issuing permits to build more sky scrappers. The problem is clear. The developers have overstocked and have to face the obvious consequences. Prices have to fall as is happening in other countries in Europe.

Joe Cassar

Jun 12th 2010, 09:39

A slowdown in the Developers' sector is a GOOD THING and should be encouraged, not countered.

lgalea

Jun 12th 2010, 09:34

AIP
Such permits need to be liberalised - not restricted to certain areas - or abolished completely since such burdens and requirements are a disincentive to foreigners and discriminatory to property owners."

What about the Maltese citizens who cannot afford to rent or buy because of your GREEDY artificial price increases that have blasted property prices sky-high? Why are you selling OUR tiny country to foreigners?

lgalea

Jun 12th 2010, 09:31

STOP DESTROYING MALTA AND THE ENVIRONMENT WITH ALL THIS CONSTRUCTION MADNESS. ARE THE ENVIRONMENT RAPISTS KNOWN AS DEVELOPERS GOING TO BE ALLOWED TO BUILD EVERY INCH OF MALTA WITH THEIR MATCHBOX APARTMENTS?

M.Grech

Jun 12th 2010, 09:31

A slow-down in this sector is nothing but a blessing..... blame over-development & supply instead, imma laqwa il Mercedes.

PM Camilleri

Jun 12th 2010, 09:30

And so the farce continues. Why don't they leave Malta alone (after having 'concrete'ised it) and go develop in some other underdeveloped country? I am sure these are skills worth exporting!

L.Farrugia

Jun 12th 2010, 09:22

@Horace Bonello Imma kif dejjem issib minn irrid ikun politiku. Ipprova argumenta u attakka lil minn qed jaghmel it-talba biex ikun hawn argumenti serji u forsi dak li jinkiteb f'dawn il-pagni ikun hemm xi hadd li jikkonsidrom bis-serjeta.

Charles Micallef

Jun 12th 2010, 09:21

Who are these developers think that they are going to sell their new houses stock to ?
and do they not think that have more enough empty accomodation for sale ?

j.schembri

Jun 12th 2010, 09:18

Dawn gfhandhom jaghmlu sagrificju bhal ma qed jaghmel kulhadd fil-pajjiz, li qed jaghmlu huwa li jisselfu mill-bank, jibnu, u ihallu l-postijiet vojta sakemm isibu min jixtrih aktar ma idum ma jinbiegh il-prezz aktar jitla. Min habba li jissellfu mill-bank dawn jifilhu ihallu postijiet vojta. Nappella li l-ewwel ibieghu dawk li ikollhom vojta imbaghad jinghataw permessi ghal oħrajn godda. Malta se tinbena kollha u nofs tkun postijiet vojt ghal meta jinqala xi hadd.

m.farrugia

Jun 12th 2010, 09:13

Jaqilu il-belli liri, u ghax issa qed isibu ftit tal-problemi biex ibieghu bil-prezzijiet li rridu huma qed jitolbu li l-gvern jaghmilhom l-ilma jisfen. infakkarhom li dawn meta jisselfu qed jinqdew ukoll bi flus il-poplu li qieghed jiehu biss peanuts bhala imghax,

CZARB

Jun 12th 2010, 09:02

We have enough houses to satisfy Malta's demand for the next decade. Incentive more development is pure madness.

Horace Bonello

Jun 12th 2010, 08:58

There's one mother of solutions that the GRTU or any other pro-PN entity does not have the gumption to tell the government. Just step down, call an election and let the people decide whether they want more of the same or are now ready to try something else. It is so obvious that the government's arrogance and lack of initiative in ALL sectors is the result of spending much too long in power. It happened in other countries and is happening here. unfortunately the crop of new blood in the PN has already tainted itself and cannot be taken seriously.

victor caruana

Jun 12th 2010, 08:53

Yes introduce the measures.....but prices and rents will remain the same.... the incentives will end up in the pockets of the developers not the buyer.