How is it possible that the price of property has continued to shoot up so uncontrollably when supply exceeds by far the demand?

I think that most of us (ordinary citizens) accepted the many superfluous theories and explanations, which at first sounded very plausible. However, when these theories are placed under scrutiny they don’t hold water.

One of the reasons given by certain people to justify this increase in the price of property is that there is very little land left that can be developed. When one wanders around our towns, it is amazing to see the number of unbuilt plots and land that are available. In fact, in order to keep people from dumping rubbish in these many unbuilt plots, MEPA has compelled their owners to erect walls around them.

Another scenario is the plentiful supply of empty old and new properties. One just has to open the classified section of The Sunday Times to realise this immediately. But still the prices are destined to go higher and higher.

Another phenomenon taking place around us, which is impossible to go unnoticed, is the demolishing of houses, some of which are relatively new, built on normal plots. These are being replaced with maisonettes, apartments and penthouses. This is making available a number of properties in an exponential way. But still the prices are destined to go higher and higher.

There is also the new reality of high-rise buildings, which again are providing plenty of properties built on a relatively small footprint. But still the prices are destined to go higher and higher.

Many institutions have expressed their preoccupation with the uncontrolled and exaggerated increase in the price of property and the consequent burden of the loan imposed on couples. But although these institutions speak about this abnormal and difficult situation they have taken no further action or put serious pressure to restrict this avalanche of price increases. By the way, I am not referring to those extravagant apartments in the upmarket areas, but to ordinary property in a “normal habitat”.

I mentioned the scarcity of land earlier and would like to add some food for thought. On the outskirts of most of our towns cultivated and uncultivated fields and housing are interspersed. Sometimes there are farms in these fields that have animals, which I think everyone would argue that these should be relocated to more suitable places. Why does MEPA not create a clear border between fields and built up areas with a buffer space as the case might be? In this way more land is made available without having a negative impact on agriculture and “our” countryside. Then there is the problem of the countryside, 80 per cent of which, according to the Bird Life Malta, is occupied by hunters and trappers, who make up four per cent of the population; this means not accessible for the public. In fact when one tries to venture out in the countryside one will end up roaming along roads that end nowhere. So what is all this fuss about protecting our fictitious countryside that can only be enjoyed by a very small section of the population. I think that with fair justice, better management and more effective use of our land, we can have an improved and better quality of life.

As regards the hike in property prices, one asks if there is some form of “dirty arrangements” being made behind the scenes. Scandals and manipulation related to property have been uncovered in parts of Europe. I can think of no other reason why this is taking place. The authorities must examine this situation very seriously as it might manifest itself in other sectors or services. If all the institutions, assuming they have no part in this property price increase, that were preoccupied with the “high prices of property is crushing couples” are completely helpless and powerless, they should at least unite and strive to increase salaries to reflect the hike in the cost of housing, especially for first time buyers if they really believe and care about the new generation of families.

Simon Scicluna

ZABBAR