Residential Mortgage Survey Results for October 2005

According to the 24 authorized institutions (AIs) which participate in the HKMA's monthly survey of residential mortgage lending, new mortgage loans drawn down during October fell further by 7.9%, to HK$7.8 billion.

New loans approved by the AIs decreased by 2.1%, to HK$9.6 billion. The decline was due to a decrease of HK$659 million (-8.7%) in approvals for secondary market transactions that more than offset the increases of HK$444 million (+38.1%) in approvals for primary market transactions and of HK$11 million (+1.0%) in approvals for refinancing. The number of new applications also decreased, by 5.9%.

The proportion of new loan approvals priced at more than 2.25% and up to 2.5% below the best lending rate increased to 33.3% from 27.3% in September, and became the most commonly used interest rate band for new approvals in October. The share of new approvals for fixed rate mortgages also expanded, to 8.4% from 1.9% in September.

The outstanding value of mortgage loans decreased by 0.3% to HK$536.8 billion.

The mortgage delinquency ratio edged up for the first time since June 2003 to 0.19% from 0.18% a month earlier. Nonetheless, with the rescheduled loan ratio declining to 0.35% from 0.36%, the combined ratio was unchanged at 0.54% in October.

For further enquiries, please contact:
Kevin Ip, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
25 November 2005

Annex

Notes to Annex