Malta - British Expat Forum

I wasn't aware of this development (I've no idea how, looking out my apartment I can see now it stands out a mile ) but looking into it I was amazed at the prices and the supply on the market (65 properties on the remax site right now).

How can prices be so high with so much supply on the market?

there's asking prices, and there's selling prices.....

gozomark wrote:there's asking prices, and there's selling prices.....

But with so many on the market, it seems like people aren't reducing prices to sell - they're holding out for a higher price?

some people are reducing prices, and they are selling. I reckon prices are down 20-30% from the peak, but many are still keeping their asking prices the same as a few years ago.

ps The official property price index for Malta is based on asking prices, not realised prices.

This doesn't help:


http://www.timesofmalta.com/articles/view/20111219/local/Fined-for-slashing-property-prices.399026

My perception of the property market in Gozo in the 10 years I've been here is as follows (this is Gozo not Malta, and certainly not about the Special Designated Areas like Fort Cambridge, which is top end and aimed at the non-EU rich market)

2002 house priced at € 100,000 equiv rented for € 5,000 = 5% yield
2007-2008 peak of market, house price doubled to € 200,000, and rented for € 5,000 = 2.5% yield
2012 house price down 25% to € 150,000, and rented for € 4,000 = 2.7% yield

if anything, the rent has fallen even further, to € 3,000

chris green wrote:This doesn't help: http://www.timesofmalta.com/articles/view/20111219/local/Fined-for-slashing-property-prices.399026

yep, thats completely bonkers

I think that article is a good example of how Malta is in many ways basically a 1970's style European socialist society.

Although in the 1970's Malta was practically a communist state...

In how many other EU countries is the price of bread, milk, petrol, gas and cigarettes directly controlled by the state ?

Many older properties in Gozo are in trust to families, who cannot or do not want to sell, this has the effect of keeping market prices high, but it does not necessarily reflect the actual selling prices.

There are also the 'buy to let' speculators who cannot now sell without a loss, hence the low yields in the ‘long let’ rental market.

However there are landlords around, that would rather let a house for ‘short let’ at 1,000EUR per month for five months with many different tenants, rather than a ‘long let’ to one tenant at 500EUR for 12 months or more.