FAA would like to draw attention to Prime Minister Gonzi exchange with Mr. Frank Salt in a public debate where Prime Minister Gonzi commented “We had schemes for people to direct funds invested abroad to Malta but in hindsight I can say that many of these funds went to property. A result of the schemes we introduced led to an over-supply of property.”. This, together with the latest census results (Census 2005 Volume 2, Dwellings*), confirms FAA’s repeatedly-voiced concern that, in spite of being swept under the carpet, the problem of the tens of thousands of vacant properties on our island is a very real issue. .
An article which subsequently appeared in The Times Business supplement dated 2 nd November 2007 also commented on these same results, however attempted to diminish the gravity of the situation by perpetuate a number of myths. Claiming that a great number of these vacant units are uninhabitable, Architect Alfred Briffa seems to have overlooked the statistics that out of 53,136 vacant dwellings, less 10,028 holiday homes, just 4,824 (ie. 11.19%) are in need of serious repairs or dilapidated. Therefore we are left with a massive 38,284 vacant properties that are sound and habitable, 4,555 of which are located in Sliema and St. Julians.
His further claim that there is no demand for village core properties is equally erroneous. The number of young couples buying in village cores is borne out by the flood of applications to convert old Urban Conservation Area houses. Likewise, Floriana is following in the footsteps of Valletta, with young people showing a growing interest in residing within these historical towns.
Architect Briffa’s further statement that “These investors would be prepared to overlook the type of development and its intrinsic design, so long as it could accommodate a certain number of properties” clearly highlights the current mentality that FAA is trying to combat, primarily that of quality sacrificed to quantity.
While it is true that well-built and well-priced properties ensure better sales prospects, it is equally true that upscale, lifestyle projects cater for a very limited market while the number of such mega-projects has multiplied to the point that soon even this niche will be saturated.
Ultimately the responsibility for this situation rests with the Malta Environment and Planning Authority. While MEPA’s environmental performance is notorious, this glut of vacant dwelling units confirms that planning capability is no better. Decisions to raise building heights all over Malta, open the countryside to development and allow high-rises were totally uncalled for, have ruined the face of Malta’s towns and villages and can only be explained by the pressure to enrich developers. In any other country heads would roll.
The census report can be downloaded at:
http://www.nso.gov.mt/statdoc/document_file.aspx?id=2096