In the latest report on the Maltese property market compiled by Djar and EY Malta, data shows a significant slowdown in annual price growth between Q1 2019 and Q1 2020 across all regions in Malta, except for Gozo.
According to the report published today, the data indicates that Q1 2020 represented a near standstill in property price growth, with an average price change of -0.16 per cent being recorded over the previous quarter. Price growth ranged from +0.17 per cent in Gozo to -0.24 per cent in the Northern Harbour region.
Interestingly, over two-thirds of the advertised properties that experienced a price change in the first quarter of 2020 saw a reduction in the asking price when the COVID-19 pandemic hit, according to the report.
“An analysis of 2019Q4-2020Q1 indicates that 2020Q1 was mainly characterised by a drop in advertised prices for those properties which remained listed, potentially due to the prevalent situation at the time. In fact, 69 per cent of properties analysed over this period registered a decrease in overall value,” the report states.
Gozo is the only region to experience overall price increases over the two considered periods, while the regions which experienced the most price decreases were the Western region in year-on-year analysis (56 per cent) and the Northern Harbour region in the last quarter analysis (74 per cent).
CTO at Djar, Keith Galdies, said “This downward shift which started in the last quarter of 2019 – due to changing demands, an increase in supply, and prolonged political uncertainty that dented Malta’s reputation with foreign investors – has been further compounded by the coronavirus.”
Madliena (-1.05 per cent), Senglea (-1.03 per cent) and Valletta (-0.76 per cent) witnessed the greatest decrease during the first quarter of this year, while properties in Gozo saw a slight overall increase in prices of 0.2 per cent over the last quarter of 2019.
This report indicates the first signs of a pause in escalating property prices as seen over the past three years, as well as a contraction in market supply. Djar states that while the full impact of the pandemic will be further analysed in its next report, a quick preview of the second quarter of 2020 confirms this downward trend,
“A sample of the properties which changed price between Q1 and Q2 is showing that 61 per cent dropped their asking price, clearly showing vendors’ appetite to secure a quicker sale.”
For the purpose of this study, Djar has been collecting tens of thousands of web-based listings since January 2017 to gain the first comprehensive overview of the property market in Malta. The company says a unique aspect of the study is that unlike the figures released by the National Statistics Office and the Central Bank of Malta, Djar has the technology to provide the latest data on what’s happening in the real estate market, right up to the previous day.
“This report, which uses machine-learning techniques and manual crosschecks to increase accuracy, is just one of the many we will be releasing in the coming months to bring more transparency to the market. We want buyers and sellers alike to get a 360-degree view of the latest shifts to make an informed decision,” Mr Galdies said.
The full report may be found on djar.com
