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Hedonic house price indices for Malta: A mortgage-based approach

Author

Listed:
  • Reuben Ellul
  • Jude Darmanin
  • Ian Borg

    (Central Bank of Malta)

Abstract
This paper makes use of a novel dataset derived from mortgage contracts granted by the major lending institutions in Malta. This contains information about house prices and a number of important property characteristics. Together with geographic and sociodemographic variables, this information allows the computation of a range of hedonic house price indices for Malta for the period 2010-2017. In general we find that growth in house prices remained relatively muted over the period 2011-2014, ranging between 1.0% and 2.0%. House prices picked-up markedly after 2015, averaging between 4.5% and 7.5%. In particular, house price growth peaked in 2017, at between 10.1% and 11.0%. Although the general evolution of the hedonic house price indices calculated in this study are broadly similar to the indices computed by the contract-based index produced by the National Statistics Office and the advertised-based index produced by the Central Bank of Malta, there are some divergences. These differences can be attributed to changes in property characteristics.

Suggested Citation

  • Reuben Ellul & Jude Darmanin & Ian Borg, 2019. "Hedonic house price indices for Malta: A mortgage-based approach," CBM Working Papers WP/02/2019, Central Bank of Malta.
    • Handle: RePEc:mlt:wpaper:0219
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    File URL: https://www.centralbankmalta.org/file.aspx?f=72406
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Brian Micallef & Nathaniel Debono, 2020. "The rental sector and the housing block in STREAM," CBM Working Papers WP/03/2020, Central Bank of Malta.
    2. Reuben Ellul, "undated". "Short-term rentals in Malta: A look at Airbnb listings a," CBM Policy Papers PP/08/2019, Central Bank of Malta.
    3. Reuben Ellul, "undated". "Long-term housing rentals in Malta: A look at advertised listings," CBM Policy Papers PP/02/2020, Central Bank of Malta.
    4. Ekaterina Bobrovskaya & Andrey Polbin & Nikita Fokin, 2024. "Hedonic Price Indices for Moscow Short-Term Rental Housing," Russian Journal of Money and Finance, Bank of Russia, vol. 83(1), pages 77-103, March.
    5. William Gatt & Noel Rapa & Luca Brugnolini, 2020. "MEDSEA-FIN A DSGE model of the Maltese economy with housing and financial frictions," CBM Working Papers WP/04/2020, Central Bank of Malta.
    6. William Gatt & Germano Ruisi, 2020. "Housing demand shocks, foreign labour inflows and consumption," CBM Working Papers WP/07/2020, Central Bank of Malta.
    7. Brian Micallef, 2022. "Minimum Income Required to Purchase a Property: Conceptual Framework and Application to Malta," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(10), pages 1-13, October.

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    More about this item

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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