The rationalisation of development boundaries in 2006 registered the highest spike in prices ever, the National Statistics Office’s property price index has revealed.
In June 2006, right after the parliamentary debate concerning the controversial extension of development zones, prices across the entire property spectrum shot up by a massive 32.17% over the same month in 2005.
The statistics betray claims made by government back in 2006 that the increase in supply of houses would have pushed prices downwards.
However, the new property index released yesterday confirms trends of a possible slowdown in the price inflation of property, which real estate agents have dubbed as a “correction” or a “rationalisation” of artificially high pricing.
In March 2008, the All-Property Price Index reached 176.89, corresponding to 172.29 in the same period last year. Property was 6.83% higher in the first quarter (Jan-Mar) than in the corresponding period last year.
The price index has December 2001 as its base period.
The Property Price Index (PPI) which is based on prices for apartments, maisonettes and terraced houses only, stood at 165.70 for apartments in March 2008. On average, throughout the first quarter this year, apartment prices are estimated to have increased by 8.62% cent when compared to the PPI in respect of January-March 2007.
In March this year, the PPI for maisonettes stood at 191.93, with prices being estimated to have gone up by an average of 7.11% in the first quarter over this time last year.
In respect of terraced houses, an average rise of 11.46% was estimated with respect to January-March 2008. In March this year, the PPI for terraced houses reached 234.62.
In March 2008, the 12-month moving average inflation calculated through the All-Property Price Index was estimated at 5.52%.
The Property Price Index (PPI) is based on prices in respect of three property types,
namely apartments, maisonettes and terraced houses. The All-Property Price Index (APPI) includes price inflation rates, calculated on an annual and a 12-month moving average basis.

mvella@mediatoday.com.mt