Activity in residential mortgage loans increased further in
July, according to the HKMA's monthly survey of residential
mortgage lending.
The value of new loans drawn down during the month rose
significantly by 27.3% to HK$6.7 billion. In line with an increase
in loan applications, new approvals also increased markedly by
30.0% to a ten-month high of HK$8.8 billion. The increase was
mainly attributable to the strong growth in approvals for primary
market transactions, which rose by 44.0% in value terms and 62.3%
in number terms.
The proportion of new approvals priced at more than 2% below the
best lending rate was 92.4%, similar to that in June.
The outstanding amount of mortgage loans declined by another
0.3% to HK$522.2 billion.
The mortgage delinquency ratio improved to 1.10% from 1.12% but
the rescheduled loan ratio increased to 0.55% from 0.53%. The
combined ratio thus remained unchanged at 1.65%.
"The survey results reflect the continued pick-up in property
market activity, following SARS," said Mr David Carse, Deputy Chief
Executive of the HKMA. "It is also encouraging that the combined
ratio of delinquent and rescheduled loans remained stable."
New loans drawn down for purchasing properties in Mainland China
increased by a quarter to HK$119 million. The amount of outstanding
loans at end-July was HK$6.2 billion.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
28 August 2003
Annex
Residential Mortgage Survey
Notes to Annex
- The Residential Mortgage Survey is a continuous monthly survey
covering 27 authorized institutions in the banking industry.
- Residential mortgage loans (RMLs) in this
survey are loans (including refinancing loans) to private
individuals for the purchase of residential properties, including
uncompleted units, but other than those properties under the Home
Ownership Scheme, the Private Sector Participation Scheme and the
Tenants Purchase Scheme.
- Gross new loans made are new mortgage loans
drawn down during the surveyed month.
- New loans approved are mortgage loans approved
during the surveyed month. The loans can either be drawn down in
the same month or in the following months. Loans that are approved
but not yet drawn, which have implications for the amount of gross
new loans made in the following months, are shown under the item
"New loans approved during month but not yet drawn".
- Delinquency ratio is measured by a ratio of
total amount of overdue loans to total outstanding loans.
- Rescheduled loan ratio is measured by a ratio
of total amount of rescheduled loans to total outstanding
loans.
- Co-financing schemes refer to those schemes
that involve provision of top-up finance by property developer(s)
or other co-financier(s) in addition to mortgage loans advanced by
authorized institutions. For loans associated with co-financing
schemes, only the portion of loans advanced by reporting
institutions is included in this survey.
- Average loan-to-value ratio and average contractual
life for new loans approved during the surveyed month are
average figures weighted by the amount of new loans approved during
the surveyed month by individual reporting institutions.
- Loans written off over the past 12 months as a
percentage of the average outstanding loans is calculated as: total
value of loans written off during the past 12-month period as a
percentage of the average outstanding loan value over the 12-month
period [i.e. (opening + closing) / 2].