Malta has pulled ahead of Hong Kong to become the world’s fastest growing housing market, according to a report from property consultancy Knight Frank.
Malta knocked Hong Kong, which had the strongest annual price growth in the first quarter of this year and has led Knight Frank’s quarterly Global House Price Index nine times since 2009, out of first place.
According to the Knight Frank report, Malta’s strong economy and limited housing stock has propelled prices by 17 per cent in the second quarter of this year, compared to the same time a year ago.
“A growing tech industry in Malta has boosted the country’s economy, which grew by 6.6 per cent in 2017,” the report said.
The double-digit growth in Malta and Hong Kong is remarkable, compared to the rest of the world. Globally, prices grew at a modest rate of 4.7 per cent, the slowest level in nearly two years.
"The rising cost of finance, an uncertain political and economic climate and currency instability in some markets is likely to be tempering demand," wrote Kate Everett-Allen, author of the report and part of Knight Frank’s international residential research team.
"Our analysis shows that whilst fewer markets are seeing a decline in house prices, where prices are rising, they are rising at a more moderate pace."