The Malta Developers Association (MDA) has noted comments made earlier this week by the National Audit Office in the Public Accounts Committee of the House of Representatives to the effect that government is calculating the value of public land to be used for high-quality residential purposes by basing itself on the benchmark already indicated by Deloitte in the case of a development in the same area of St George’s Bay.
MDA reiterates that it has already put on record that it disagreed completely with the estimated cost of the land concerned made by Deloitte since it considered that value as being far below the market prices prevalent when Deloitte carried out their valuation exercise. Since then, market prices have gone up further.
When government sells public land to be used for residential purposes at below current market prices, it distorts the property market and abandons the concept of a level playing field for all the players in this market.
21 December 2018