Urban planning and the property market

Abstract

I refer to the article entitled "A seriously deficient new structure plan for Malta" by Martin Scicluna (TMID, 11 April). Mr Scicluna advocates that land within development boundary is released in a phased manner. He refers to the large number of vacant properties to justify his suggestion. This proposal is made in isolation and without considering the wider context. The planning regulatory system should not be intervened without considering wider implications to the property market. Broadly speaking, the property market operates like any economic system with the dynamics of supply and demand establishing prices. Government intervention in the form of planning regulation distorts the property market. Such distOliions could have both positive and negative impacts on society and

on the environment. In most countries, gov- ernments avoid major interventions on the

property market except where is an over- whelming reason to intervene for environ- mental or for other reasons.