The average Maltese home costs €186,643, nearly €7,000 more than the euro area average, figures released by the Central Bank revealed yesterday.
The figures, part of the bank’s quarterly review, showed that the relatively high price did not deter local property seekers. The survey found that 77.7 per cent of households in Malta owned their residence in 2010, 18 per cent more than the rest of the euro area.
In the last three months, local property prices increased 1.1 per cent.
This, however, did not occur across all property types. While maisonette and apartment prices increased steadily, prices of terraced houses, town houses, houses of character and villas, were down.
€26,229
– the median value of financial asset holdings of Maltese households
Property consultant Alex Bajada said the shift had been a long time coming.
“As people’s lifestyles change so too will the properties they buy. Apartments are compatible with the faster pace at which we live our lives. Older properties are still selling, but not as fast as new buildings. Also, young couples can’t afford older properties,” he said.
Many Maltese did not limit themselves to one property. The survey found that a third (31 per cent) owned other properties, including garages, second homes, commercial premises and even recreational or agricultural land. On the other hand, less than a quarter of euro area respondents owned a second property. The survey found that nearly all Maltese home owners also held some form of financial assets.
Some 97 per cent had bank deposits while 24 per cent had life insurance or private pension policies. This fell in line with the euro area average.
However, while 21.6 per cent of local home owners held bonds, only 5.3 per cent of euro area households did.
On the other hand, 24.6 per cent of Maltese households participated in voluntary pension schemes and life insurance policies, compared with 33 per cent in the euro area.
The overall median value of financial asset holdings of Maltese households was estimated at €26,229, more than double the amount estimated for euro area households (€11,400).
Despite the apparent affluence, more than a third of Maltese households had some form of debt, with almost 16 per cent having an outstanding mortgage loan to finance their main property. Moreover, more than a quarter of homes used credit cards and overdrafts to finance their personal consumption.
The average Maltese debt stood at €15,700, with mortgages making up 76 per cent of the burden.
Debt was relatively higher across the euro area at some €21,500. In fact nearly 44 per cent of eurozone households were burdened by debt liability.