August sees 25% drop in property sales, but promise of sale agreements continue to pick up

The number of residential properties sold during August 2023 was 24.6 per cent lower than that sold during the same month a year prior, continuing the general trend, observed throughout the year, of a relatively slow year for Maltese real estate.

Despite the sharp drop in sheer numbers, the combined value of property sold only fell by 9.4 per cent, indicating a higher average selling price.

While it has not been established whether this reflects a general increase in property prices or rather the specific mix of properties sold in August, the consistency of higher average selling prices seen throughout 2023 indicate that it is likely to be the former.

Data released by the National Statistics Office shows that, in total, 949 properties worth a combined €263.4 million changed hands last month, when compared to 1,258 worth €290.8 million in August 2022.

Meanwhile, promise of sale agreements signed increased by 5.5 per cent to 970.

The relatively low number of final deeds of sale signed in 2023 so far (Jan-Aug – 2023: 8,100; 2022: 9,500; 2021: 9,432) reflects the similarly low number of promise of sale agreements signed last year (2022: 12,168; 2021: 15,639).

Real estate experts have largely quashed any talk of a potential slowdown, pointing instead to the impact of generous Government subsidies to the property sector that ran through 2021.

With the number of promise of sale agreements signed in 2023 to-date being 11 per cent higher than the number signed between January and August of last year, it seems that the property sector will remain robust in the near-term.

Real estate by locality

In August 2023, the highest numbers of final deeds of sale were recorded in St Paul’s Bay (79), Mosta (46) and Birkirkara (41).

As for promise of sale agreements, these were mostly related to properties in St Paul’s Bay (99), Msida (53) and Marsaskala (42).