NEWS | Wednesday, 26 September 2007

Confusing statements on property prices

Bianca Caruana

On the real estate front, property prices have started to follow a confusing trajectory. In years gone by property has skyrocketing for a number of reasons, with prices increasing between five and 10 per cent per annum.
But today, estate agents seem to have different opinions on what is occurring within the property market. And with elections in the offing, it is proving difficult to predict whether the value of property will continue to rise, plateau, or even decrease.
However, some real estate agents acknowledge that the value of property is slowly beginning to stabilise.
John Cilia, manager of Property Plus Limited, observes: “Most property prices have become more stabilised and this can be seen especially with new properties. In some cases, prices are decreasing, particularly in the case of properties sold by contractors who have loans with banks.”
However, Nicky Billocca, manager of Frank Salt Real Estate Limited, finds that the value of most properties is still on the rise, with a visible increase of about seven per cent per annum.
Simon Debono, of Simon Estates, concurs with Billocca: “Prices are not stabilising since there is a lot of demand for property. The supply does not seem to be matching the demand and prices are still going up.”
Debono feels prices are continuing to rise by a generic five to nine per cent per annum, although this rate of increase is not as high as it was during the elections.
James Mangion, manager of Fair Deals Estate Agents, says: “There is currently a lot of property on sale and good properties usually remain at the same price. The majority of common workers usually go for apartments, especially if they are first time buyers.”
According to most estate agents, the most popular property choice is the apartment in Malta and villa in Gozo.
“These apartments usually have a sea view and are located around harbour areas or in the north of the island,” Billocca says. “They usually cost around Lm 400 to Lm 600 per square metre.”
Clientele seems fairly balanced, with local and foreign residents alike making purchases. But according to Billocca, the amount of sales to foreigners is quite high. Debono, on the other hand, feels that the majority of purchases are being made by local residents who are opting for maisonettes, penthouses, large farmhouses and anything with a view, especially a sea-view. The price of these properties can range from anything between Lm 60,000 and Lm 250,000.
“I feel the majority of tourists opt for tourist areas such as Bugibba, Marsascala and St Julian’s. Locals want their own space, and tend to choose to purchase property with sea or country views.”

[email protected]