Malta replaced Hong Kong in race for first place among territories or countries with highest gains in cost of housing in the second quarter, Bloomberg reports referencing to Global House Price Index from Knight Frank LLP.

House prices on this tiny Mediterranean island grew in three months to June by 17% compared with last year. Limited supply together with impressive economic growth, which was 6,6% last year, stimulate demand.

Hong Kong, the least affordable housing market in the world, took second place in regards to price gains. Growth of prices was 16%. Hong Kong was among leaders of the index in 10 occasions since 2009. However, experts predict cooling of the market amid rising interest rates. Besides, new measures for limiting price growth are introduced at Hong Kong’s market as well as in Singapore and New Zealand.

According to Gaw Capital Partners, prices may fall by 15% next year.

Latvia, Slovenia and Hungary were also included into top five as they all showed double-digit growth. Ukraine, Peru and Saudi Arabia are at the bottom of the list as prices declined by 4,5%, 1,6% and 1,3% correspondingly.

Global House Price Index from Knight Frank tracks prices in 57 countries and territories.