Global consultancy agency Knight Frank’s has published its Global House Price Index for Q2 2018 and provided that, according the Central Bank statistics, residential prices in Malta have experienced roughly a 17% year-on-year increase, pushing the country ahead of Hong Kong to the top spot for the first time ever. Their latest Global House Price Index for Q2 2018 states that this leap in ranking is due to the ever-growing demand instigated through supply restraints, consistent vigorous economic growth ((6.6% GDP growth in 2017), and booming technological advancements.
Apart from the 16.9% increase observed in the period from Q2 2017 to Q2 2018, Maltese residential property prices have also more recently undergone a 3.6% average price increase in the first quarter of 2018. The Maltese property market as a whole has managed to sustain an upward trend, as the Maltese economy continues to perform among the highest in Europe. Property sectors on the Maltese islands have also been enjoying steady price increments fuelled through the unwavering demand of both locals and foreigners, especially from developers, investors, and iGaming executives.
Malta is one of an increasing number of countries seeing growth in annual residential prices, even when the average global rate of growth is moderating. This despite the fact that the Malta 4.7% growth rate recorded in the year to June 2018 has been the island's slowest since Q3 2016. Global abating property growth rates can be explained by a number of factors, not the least of which being the surge in financial costs, an unpredictable global political and economic climate, and volatile currencies.
Hong Kong, despite reigning the price index on more than one occasion, dropped to second place in the latest rankings amid economic uncertainties and rising interest rates which have left their fair impact on demand. More so, Hong Kong is also one the countries that has introduced new cooling property market regulations, along with New Zealand and Singapore.
As regards to the rest of the countries which featured in the index, mainstream house prices in 12 of the 57 countries are still below their Q3 2008 level, including those in Spain, Ireland, Italy, Greece and Russia. With regards to those at the top of the index, Latvia, Slovenia, and Hungary experienced 12-month growth rates ranging from 12% to 14%. This has put some of the limelight on Central and Eastern Europe, showing the breakthrough the region has had in bolstering its economy.
