Issue link: https://maltatoday.uberflip.com/i/1173510
03.10.19 7 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN COORDINATING EDITOR: PAUL COCKS CONTRIBUTING JOURNALISTS: MASSIMO COSTA | LIAM CARTER BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 T he signals have long been felt but now the slowdown in the property market has been confirmed by a study released yester- day by KPMG. Operators believe this is the result of the market regaining balance af- ter six years of explosive growth. And it may not be a bad thing that the industry is plateauing because it helps the sector find its feet and fo- cus on quality rather than quantity. Quality appears to have been a victim during the growth period, with some operators even express- ing their fear of Malta gaining a rep- utation as a destination for work- ing-class migrants and tourists. is fear is stoked by the shoddy construction and finishing work in some high-end properties that fall short of the expectations of rich buyers. God only knows what the quality of work in less prominent and ordinary apartment blocks is. Cutting corners to cut costs is a national trait but has now been ex- posed bare by the KPMG study in a sector where shoddiness can be unforgiving. It is no wonder that the Prime Minister yesterday warned opera- tors in the sector against greed. Greed causes indigestion and the same applies in the economy. e quick-buck mentality is not con- ducive to a healthy economy and is partly to blame for the runaway prices in the rental market. e KPMG study found that there were very few available proper- ties for rent below the €1,000 per month mark. It is hard to believe that the shortage is a result of few- er properties within that range that are on the market. e truth is that prices have been inflated to a point that they are not only harming those Maltese who depend on the rental market for their housing needs, but also indus- tries that rely on foreigners. A representative of the gaming sector, last week warned that high- er rents were creating wage pres- sures and could pose a threat to the industry's competitiveness. Within this context, the relevance of an organisation like the Malta Developers Association cannot be understated. e MDA provides a single inter- locutor for the industry; from exca- vation contractors to developers to property agents. It is an important lobby group but more importantly, could serve as a driving force to up industry standards in a sector notorious for cutting corners. e MDA can also serve to educate its members on the need for prudence. But while self-regulation is impor- tant, standards should be set at law and enforced. is is why the government must speed up the process to set up a building regulation authority that will serve to stamp out abuse and act as a focal point for the sector. Professionalising the sector will help weed out the amateurs. e rent reform law must also be enacted to bring some order to the property market and ensure the government collects its fair share of taxes from the large volume of in- come it generates. e property and construction market remains an important cog for the economy, providing thou- sands of jobs to a wide range of in- dividuals with different skill sets. It cannot and must not be written off. But the property and construc- tion industry must not be allowed to gain dominance in the economy and to do this, other sectors, such as manufacturing, must also grow through new investment. Greed causes indigestion