Letters to the Editor

The leader of the Balearic government Francesc Antich is concerned at the high property prices in the Balearics. He should be. In many cases property has become so expensive that only sterling millionaires can buy a home of note in Majorca. Antich makes this statement in an interview he has given to a German newspaper. He says that he is happy that property prices have started to fall and hopes that it is a trend which will continue. Property has become so expensive that it is out of the price range of thousands of young Majorcans who are first time buyers. This state of affairs is not helped by the increase in interest rates. But Antich should prepare himself. The first real consequence of his building freeze, when it finally comes into force, will be to push property prices even higher. It is a question of demand and supply. Although greater control on building is certainly needed Antich should prepare himself for the consequences. To a small degree high property prices mean that the island is a much sought after place. The buoyant house prices naturally help the local economy. I don't understand how he can be pleased by a drop in prices because this means that all is not well.