Issue link: https://maltatoday.uberflip.com/i/1483254
Name Current Change %Change Open High Low Prev. Value Close US MARKETS NASDAQ 10,771.00 -118.74 - 1.09% 10,858.47 10,885.69 10,742.64 10,890.85 EUROPEAN MARKETS FTSE 7,144.14 -42.02 -0.58% 7,200.34 7,205.07 7,130.50 7,186.16 CAC 6,276.88 -51.37 0.81% 6,359.40 6,376.29 6,273.55 6,328.25 DAX 13,256.74 -82.00 -0.61% 13,369.54 13,398.64 13,255.07 13,338.74 03.11.2022 7 MARKETS International Markets Global Indices Trading Date: 2 Nov 2022 Malta property market: year-on- year growth THE local property market continues to experience growth year on year, despite the various challenges derived from an increase in construction costs, ex- cess-supply, and affordability constraints. These, and other insights on Malta's Property Market, were discussed during a first-of-its-kind networking event organised by Bank of Valletta for Real Estate Agents. During this event BOV also in- troduced its recently launched Online Home Loans Portal to those present. During an introductory speech, Bank of Valletta CEO, Kenneth Farrugia said that "We have devel- oped a number of affordable and accessible financing solutions to provide our customers, the opportunity to acquire their dream home or to purchase property as an investment. Through the new Home Financing Portal, our customers are being provided with an en- hanced digital experience and an easy-to-use end- to-end platform where they can apply for their home financing solution from the comfort of their home. The introduction of the BOV Online Home Loans Portal is another first for the Bank, offering custom- ers a truly holistic digital journey." Dr Daniel Gravino presented the latest Malta Prop- erty Landscape Report compiled by Grant Thornton and Dhalia. The report provides insights on the Sell- ing and Rental House Price Indices, Property Trans- actions, Housing Demand and Supply, Affordability, Rental Yields, and a Market Outlook for the com- ing years. The report shows that between 2020 and the first half of 2022, the selling price for the aver- age housing unit increased at a relatively slow pace. However, when looking back at the Selling Price of property over the span of the past nine years, figures show how these doubled. With housing supply grow- ing rapidly and demand growing at a slower pace, the market outlook for the next two years forecasts some downward pressure on property prices. Similarly, Lara Selvagi – Head Data Insights and Economics at Bank of Valletta, shared insights from the customers' point-of-view, analysing in detail the most and least affordable locations for property pur- chase based on demographics such as location of the property, purchaser status and income. Data shows that price is not the only determinant of affordabil- ity since different locations and property types at- tract different kinds of purchasers. One case study demonstrated how purchasers of apartments in At- tard and Fgura experience the same level of difficul- ty in affordability, since lower-priced apartments in Fgura attract lower income purchasers, while Attard attracts higher income purchasers opting for high- er-priced apartments. Marisa Said, Head Consumer & Micro-Business Fi- nance at Bank of Valletta started by introducing at- tendees to the BOV Online Home Loan Portal as they were the first audience to watch a new tutorial video. Ms Said also shared customers' testimonials based on their experience of the new portal. She also said that the Bank is offering Estate Agents to provide them with a link to the BOV portal on their corporate websites. This will assist mutual cus- tomers in making an informed property choice based on their affordability with more ease. The event proceeded with a Q&A session from those who attended, and a closing speech by BOV Chairman Dr Gordon Cordina who explained that "the Bank is committed to fulfil its ESG requirements, which are key for further business opportunities. The top priorities in our short-term strategy will focus on proper segmentation, use of data, intelligence and digitalisation tools." Fed pepares another large rate increase to fight inflation THE Federal Reserve is expected to continue its fight against the fastest inflation in 40 years by raising interest rates three-quarters of a per- centage point on Wednesday. That would be the Fed's sixth interest rate increase this year and the fourth time in a row they've bumped rates up by this much. Fed officials have suggested that at some point it will be appropriate to dial back their increas- es to allow the full economic effect of these moves to play out. The question is when that slowdown might happen. Officials don't want investors to conclude that the Fed is easing up on its inflation fight, be- cause market conditions could become more friendly to lending and economic growth as a result, the opposite of what central bankers are aiming for. It's a challenge that could be on full display when the Fed announces its rate decision. • Stocks and U.S. government bonds were muted in early trading, as investors pre- pared to read the Fed's signals about its next steps. • Higher rates have a direct effect on Americans' lives. Savers may earn more interest and borrowers can expect to pay more on mort- gages, credit cards and other forms of debt. • Many top executives in Corporate America have said that they expect to see sus- tained demand for their goods and services, and that they expect to continue raising prices in the coming months. That may make it harder for the Fed to stamp out inflation. • Mr. Powell is well liked across the po- litical spectrum. But that could change as com- plaints about higher interest rates are likely to be lobbed at him personally.