Frank Salt Real Estate Ltd has just launched a promotional scheme targeting property buyers. Frank Salt talks about the property market and the advantages of the new scheme.

We have been working on a new promotional scheme and the general aim is to give added value to the purchase of property. To some extent, the scheme is also intended to move the local market, which has registered a slowdown as a result of the general election that has distracted buyers.

I don't believe this has had an effect on property prices. Like any other market, the property market is regulated by demand and supply. For some reason, however, this basic rule does not always apply to the sale of property in Malta.

This is due to the confidence of the local buyer who considers property a good investment and is not forced to sell, unlike other countries. Prices stabilised last year and this trend seems to be lingering.

Only properties reflecting true market prices sell. Overpriced properties will not. The fact that an owner reduces the price of an overpriced property does not mean the price has dropped.

Surely, owners sometimes feel pressure to reduce prices? Yes, they do, especially those who have bought a property and need to sell their own. My company is constantly in contact with owners to discuss market conditions and, in a good number of cases, the price is reduced to reflect the prevailing scenario.

Last year it was reported that there were 55,000 properties on the market for sale. Is there an oversupply of properties? This report had a bad impact on the market during the last quarter of last year. Such a high number of unoccupied dwellings could be due to a hundred and one reasons; not all these properties were up for sale. Those who wish to earn income from their property should register them with our letting division, since we have a huge shortage of property to let where demand is high.

Regarding the increase in supply of properties, despite the tightening of credit for local development by banks, we still register a substantial number of new properties. Our company policy has always been to provide a wide choice of properties. One also needs to appreciate that a substantial number of properties were sold or removed from the market during the same year. However, I don't think there's an oversupply of properties.

The property market in Malta is split into segments, and activity within these smaller markets differs. There is the first-time buyer market, second-time buyers, foreign buyers, investment market and commercial property market. Developers target different markets, also depending on market conditions and location. Thankfully, developers consult estate agents and carry out professional feasibility studies to gauge demand. Developers do not like taking unnecessary risks and the banks are aware of this. This leads to a sustainable property market in that it caters for different buyers, taking into consideration price, location, type of development, size of units, etc. I can say that in certain segments we actually face a shortage of property due to a high demand.

In addition to the wide choice of database properties, those who buy property until next January will benefit from superb discounts of up to 20 per cent from a number of suppliers. We have also entered into an agreement with Bank of Valletta plc, which will provide loans at a preferential rate of 5.1 per cent on facilities up to €198,000 (Lm85,001) and 5.35 per cent over and above until the end of July and 5.5 per cent on the purchase of furniture until the end of January 2009.

The scheme has nothing to do with our after-sales and consultancy division. This division provides discounts through a number of suppliers, but the service goes much further than just purchasing goods. It also includes a consultancy service, monitoring and installation of supplies and project management.

Last year, our company registered substantial growth throughout all its operations. We have budgeted a number of resources to increase overseas marketing, including other initiatives directed towards local buyers, such as the present scheme, which has just been launched.

Malta has a lot in its favour. However, we need to increase name awareness to increase foreign and local investment in our economy, the number of tourists visiting our island and also sell property to a much larger market beyond our shores.

All in all, I see a good year in property sales and an extremely good year in property letting, which this year is registering all-time highs.

It is definitely a good time to buy. Buyers have never had such a wide choice of realistically priced properties plus the fact that we have a stable and strong property market.