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- No decrease in property prices, Pullicino
- Gonzi claims increased supply of housing will bring affordable homes
James Debono
Assertions by Lawrence Gonzi that property prices will become more affordable once government releases more land into the property market have been contradicted by Environment Minister George Pullicino, who has poured doubt over any decrease in property prices.
Last week, Gonzi claimed during a media briefing that government wanted to ensure an adequate supply of dwellings for couples to have more affordable homes.
“This was a fundamental reason why the boundaries would be extended,” the Prime Minister said about the ‘rationalisation’ of existing building zones.
He lambasted environmentalists for ignoring the social argument. “Property prices are sky high, and there had been calls for government to tackle this problem for hundreds of young couples who are getting married. It’s a very important point and we have a duty to respond to this issue,” Gonzi said.
In total contrast, Pullicino had already said earlier on in May that government had not carried out the rationalisation exercise to reduce the property prices, but to redress anomalies and injustices.
Excluding a decrease in property prices, the minister claimed the new zones would ensure “the rate of increase of prices would not remain so steep”.
Pullicino did not change his tune after last Saturday’s media briefing. Speaking on Nationalist radio 101 last Sunday on Wicc Imb Wicc, Pullicino threw cold water on any suggestion that rationalisation would push prices downwards, referring only to prices becoming more stable.
But on Monday, PN organ In-Nazzjon misquoted Pullicino, reinforcing Gonzi’s allusion that extending building zones would deflate prices. In-Nazzjon quoted Pullicino saying the new zones will bring about a decrease in property prices (“se jwassal ghal rohs fil-prezzijiet”).
A spokesperson for Pullicion has now denied the minister ever said these words on the PN radio, saying instead that the ministry had sought technical advice on the likely effects of “a very limited release of land for development would have.”
The ministry was advised that a short-term stabilising effect “cannot be excluded but a decrease in property prices is not foreseen.”
Pullicino’s technical advice tallies with that of Profs. Lino Briguglio who believes the inclusion of new land in the development zones could temporarily slow down ever increasing property prices.
Speaking to Business Today, Briguglio also voiced widespread concern on the “possible environmental and social damage that the extension of boundaries could bring about.”
jdebono@mediatoday.com.mt
Links: www.businesstimes.com.mt/2006/05/24/focus.html
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