Property market prices in the second quarter of 2009 showed a slower rate of decline, the Central Bank said today.

It said the consistent downward trend in prices experienced since the first quarter of 2008 appeared to be moderating.

Based on its own index, the bank said that residential property prices fell by 6% year-on-year during the quarter compared with 9.9% in the first quarter.

On the other hand, the number of advertised properties monitored by the Bank dropped by 28.0%, exceeding the 21.1% decline recorded in the March quarter, indicating a further drop in activity in the market.

However, the number of building permits granted by the Malta Environment and Planning Authority in the second quarter was at the same level as a year earlier.

The largest drop in prices, of 12.7%, was registered by prices of maisonettes in shell form. Deductions of 6.9% and 6.4% in the prices of finished flats and flats in shell form, respectively, were also recorded, but these were smaller than those observed in the March quarter.

Moreover, the decline moderated to 3.7% and 7.2% for townhouses and houses of character, respectively.

Terraced houses continued to be the only category experiencing positive growth, with their prices registering an increase of 4.2%.