Sharp drop in permits for dwellings

Phil Zammit

Sep 25th 2012, 05:26

Having lived and raised a wonderful family in the USA, I have never forgotten my childhood and teenage years growing up in the 60's. Still love and visit the island quite often.

I would love to prop your economy by buying a simple place where my wife and I can spend a couple of months a year. I have scoured the real estate websites and simply cringe at what I see. I see dilapidated dumps you call "unconverted house of character" (or concrete filing caninets as one cleverly put it) for 200,000 Euros - that's $260,000 - and I'm not talking some premium location or seafront. These are common Joe, zero specialty homes, flats or maisonettes in locations such as Qormi, Zebbug, B'Kara, Zejtun etc. Do you have any clue what I can buy for that kind of money here in fabulous Eastern Washington State? In this dire real estate market (no different than YOUR dire real estate market!), I can buy a virtual mansion for a 1/4 million dollars!

And PLEASE, refrain from defending these atrocious real estate prices with the 'Malta is small and land is scarce' broken record. Frankly it's just like the cars (and most other stuff) you buy.

What I'm trying to get across is nobody likes being knowingly reamed particularly when the person does have a choice to buy or not to buy. I will gladly pay what is comparatively fair. Otherwise, you can keep your houses of character with xorok, franka, garigor and umdita' - as if these are some worthy collectibles!?!

Valerie Calleja

Sep 24th 2012, 20:42

I certainly do not see evidence of a decline in construction. Sliema is a warzone, full of ugly empty flats,craters where once stood finer houses, and old houses still being demolished so that employment can be given to Africans, serbs, poles etc etc. All these aliens then send their money out of the island.Greedy people all around. Yuo.

Roberta Debono

Sep 24th 2012, 19:45

I should think so and all, nobody is investing or buying, beside there are thousands of empty properties just rotting away or half built, needless to say turning the islands into yet another concrete jungle. i hate the thought of it all what ever happend to the green belt? I take my hate off to Mepa they seen the light in the tunnel no doubt.

James Vella

Sep 24th 2012, 18:26

To a certain extent its good news, but for you guys who are writting about loans, minimum wage and high price tags of dwellings, here's another good news for you. Issa jitla Muscat u sa solvi il-problemi kollha li jizistu f'Malta u anke fid-dinja skont kif qed jitkellem.!!!! ?????????

Serhu raskom hbieb, issa taraw !!!!!!!!

GL Calleja

Sep 24th 2012, 17:43

I think that with so many empty apartments on hand, some 70,000 thousand of them, the government should REQUISITION (confiscate) these empty apartments like the MLP did in 1974 and let their constituents squat in these empty properties for the rental charge of 185 euros a year. Also the government has to stipulate that these squatters cannot be evicted or kicked out. The poor owner has to wait until two generations of these squatters die or move away on their own. This was the exact thing that was done to my father in 1974 and we still cannot get that property back after almost forty years. Two weights, two measures?

Martin Formosa

Sep 24th 2012, 16:08

Good news indeed. The island cannot take any more. Our beautiful countryside has been exhausted to say the least. Time now to start reclaiming nature by pulling down hundreds if not thousands of unsightly, empty, illegal structures.

Mr Andrew Camilleri

Sep 24th 2012, 15:40

One of the leading architectural firms is shedding architects - I know because one of my friends has been made redundant. How does this fit in with all that the NSO is saying?

Mary Ann Borg

Sep 24th 2012, 15:28

Good news all around. Malta hardly needs more dwellings when one sees apartments under construction all over the place. It seems that finally, the industry is finding its true balance and one hopes that this will not increase the price of the ones already constructed. However, with the huge supply on the market this shouldnt happen. The fact that employment within the industry increased is also good news because it means that the industry is diversifying and actually growing.
The banks have from some years ago very wisely stopped lending money to developers of apartment blocks etc because there was a real worry that the huge supply was going to make the developers unable to pay back the loans. In turn, this has probably resulted in less permits being issued (and requested) for such dwellings, which is good for all.

E. Azzopardi

Sep 24th 2012, 15:20

Why in fact, are we still building all these horrible so called apartments and flats when we have around 70000 empty dwellings in Malta? This is the number I heard yesterday on the media and I believe it. Those who know how to notice, know what I mean.

We should start renovating old houses, built large underground reserviors, etc etc. Let us be innovative and not keep constructing all these horrible buildings all around us. Or our building contructors only know how to build apartments and flats? I think so.

Peter Simpson

Sep 24th 2012, 14:56

I pity those young people who want to start a family, which its next to impossible.
I am old enough to remember the late 60s when again, the PN was in government, and people protested because they could not make ends meet!
Can someone who has an average salary, let alone the minimum wage, (which has not been increased for the last 25 years) years, afford to buy an apartment, and still live a decent life with time enough to enough with her/his spouse or partner?

Anthony Scicluna

Sep 24th 2012, 13:41

If there is a sharp drop in the number of permits for construction of private housing, is there an increase in the number of permits for commercial development? It seems so, otherwise, why would employment and wages increase? It seems that there are other sources of revenue.

Joseph N. Attard

Sep 24th 2012, 13:31

One can only hope that the message is really getting through to the Maltese Banking System. Most banks are desperate to lend money, irrespective of whether they have a reasonable chance of ever getting it back or not. If and when they crash, it will be the honest small and medium investor which will suffer. That is, unless they are relying on a Government bailout, in which case, he whole Malltese Nation will suffer. Hopefully, the Central Bank is acting accordingly.

Jowey Brownie

Sep 24th 2012, 13:17

X' tistena ! l_ewwwl belghu id-dinja l-izvilupaturi u issa ghanda drop - minn x'jiekol kollox f'salt hekk jigrilu..ma' jibqalu xejn ghal-ghada .. greed greed and more greed and country has been become ugly with over-development . Developers should be taught a lesson in sustainability

Mark Cams

Sep 24th 2012, 13:16

to jessica spiteri.

And by constructing more buildings who is going to buy them? There a lot of vacant new buildings around so there is probably an oversupply.

Unless the location is execeptional e.g. on the sea front, or has some outstanding views then selling them is going to be difficult. And in the meantime the developers has to pay off the bank loans.

On the other hand it makes sense demolishing existing vacant buildings rather than building on vacant land.

Ms Jessica Spiteri

Sep 24th 2012, 12:54

Unfortunately, this is bad news for those of us who work in the construction sector. Solve the problem by demolishing those buildings that are falling to pieces and encourage new buildings to be built in their stead. So many derelict buildings around the island! We should tackle those instead!

Peadar Farrell

Sep 24th 2012, 12:35

The danger time is now. Permits precede work on site by 6 to 9 Months so the fall off in employment is around the corner. The danger is that Governments especially in election mode are likely to stimulate the industry with extra grant aid to create employment. Developers cannot keep building unwanted buildings and not eventually go bust which in many other countries brought the Banks down also. Everything is connected.

Francis Raeymaekers

Sep 24th 2012, 12:09

The second rate property crash (concrete filing cabinets replacing single dwellings) is coming to Malta. The infection is now well established. Incubation period: about one year.

John Azzopoardi

Sep 24th 2012, 11:54

This is very good news. Why keep building when we have so many empty dwellings. And why keep building in areas where it's outside of development zones (ODZ). There should be laws against any building outside of ODZ zones as any future should only take place in development zones and save the little space we have. Malta should also make a very big effort to create national park zones where development will no longer be allowed for any reason. This should include our vallesy and other areas that are still unspoilt by development. And may I ask why doesn't Gozo have a natural preserve zone yet. How about designating all the coastal area as natural preserve zones.

Charles Cremona

Sep 24th 2012, 11:40

Permits for new dwellings declined by 19.4% yet employment and wages in the Industry went up, this just doesn't make any sense.