Decline in property prices slows down

timesofmalta.com 18.11.2009 13:42

Property market prices in the second quarter of 2009 showed a slower rate of decline, the Central Bank said today. Click here for the Central Bank of Malta Q3 Report (statistical cut off date 28 October 2009)

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%.

Budget 2010 - Property Tax - Property restoration refunds

Budget 2010, presented in Parliament today November 11 2009 by Finance Minister Tonio Fenech, announced a further adjustment on the 2005 tax scheme(where a choice was offered between a 12% withholding tax on market value, or a capital gains payment, over property transfers undertaken within 5 years of date of purchase), and has now been extended for a further 2 years (to 7 years) from the date of purchase for the years 2010 and 2011.

Restorations of scheduled Grade 1 historical buildings will now also be eligible for a refund of 15.2%.

Click here to access Budget 2010 homepage published by the Ministry of Finance.

MEPA schedules Wied Ghajn Zejtuna in Santa Marija Estate, Mellieha.

Il-Wied ta' Għajn Żejtuna, at Santa Marija Estate in Mellieħa has been scheduled by MEPA (Malta Environment and Planning Authority) for the protection of its biodiversity and natural heritage.

Although within the development zone, only maintenance of existing structures that are already covered by a development permit will now be allowed. Proposals for bungalow development adjacent to the scheduled area will need to include a block plan showing the delineation of the rear property wall aligned with the scheduling boundary, and the scheduled part of the site retained in its natural setting.

FAA's (Flimkien ghal Ambjent Ahjar) reaction

Flimkien għal Ambjent Aħjar (FAA) welcomes the announcement that MEPA has scheduled Wied Ghajn Zejtuna at the Santa Maria Estate in Mellieha. Although limited in size, this area forms a rich eco-system supported by the permanent the freshwater spring which runs through it. It is very encouraging that in designating it as a protected area and stipulating development limitations in the immediate area, MEPA has recognised the woodland’s value in terms of biodiversity and natural heritage.

FAA hopes that MEPA will soon take similar scheduling action at Balluta Square and also designate a buffer zone around Balluta Building. On a radio programme the St Julian’s Mayor has stated that the car-park will be limited to the area under the existing street however plans recently viewed by residents indicate a triangular-shaped car-park under the square. FAA is also concerned about the aesthetic impact of the proposed street-level terminus which would block views of Balluta Valley. FAA once again reiterates that public consultation should take place before such projects are launched, not only to take heritage, environmental and residents’ requirements into account but also to increase clarity and transparency in public planning issues.