Economic fundamentals support residential real estate turnover, says HSBC study

(source: Unsplash/Zoltan Tasi)

Updated on

Economic fundamentals continued to support the residential real estate market turnover in 2018, and such conditions will further support turnover in 2019 and 2020, albeit at a more moderate pace, Gordon Cordina, Non-Executive Director at HSBC Bank Malta, said during a networking event, according to a press statement sent to Business Malta.

The north harbour area, where the average price of a property is twice the national average, was accounted for 30% of total market turnover and 40% of its growth in 2018, according to a study Mr Cordina presented.

The highest rates of price growth and the highest relative growth in turnover were registered in the more affordable central areas.

HSBC Bank Malta says it keeps its commitment to offering customers support in purchasing homes through a range loan option, according to the press release.

Mr Cordina emphasised that investment in quality is key to market resilience and that orderly evolution of the market is essential for its sustained growth.

The event was also addressed by Daniel Robinson, Head of Retail Banking and Wealth Management for HSBC in Malta.

Mr Robinson spoke on the compelling fixed and variable rate propositions that HSBC Bank has launched in recent months and the other measures it has taken to train and develop its staff and welcomed the recent publication of the Central Bank of Malta directive on mortgage lending.

He said HSBC is in favour of the directive as it will give lenders minimum specific guidelines for responsible lending, and by doing so, it will protect the future sustainability of the industry.