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

Author

Listed:
  • Ian Borg

    (Central Bank of Malta)

  • Jude Darmanin
  • Reuben Ellul

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

  • Ian Borg & Jude Darmanin & Reuben Ellul, 2019. "Hedonic house price indices for Malta: A mortgage-based approach," CBM Working Papers WP/04/2019, Central Bank of Malta.
    • Handle: RePEc:mlt:wpaper:0419
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    References listed on IDEAS

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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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