Residential Mortgage Survey Results for October 2011

The Hong Kong Monetary Authority (“HKMA”) announced the results of the residential mortgage survey for October 2011.

New mortgage loans drawn down during October decreased by 16.8% to HK$11.5 billion compared with September. 

New loans approved in October fell by 14.6% to HK$12.5 billion compared with September. Among these, approvals for primary market transactions decreased by 14.1% to HK$2.2 billion while approvals for secondary market transactions declined by 16.5% to HK$8.2 billion. Approvals for refinancing dropped by 6.8% to HK$2 billion. The number of new applications in October fell by 28.3% compared with September to 6,613. The figures reflect a continued decline in overall residential property transactions. 

New mortgage loans priced with reference to best lending rates increased from 51.3% in September to 69.7% in October, with the largest portion priced in the range of 2.25% to less than 2.5%. New mortgage loans priced with reference to HIBOR decreased to 28.1% in October, mainly reflecting banks’ upward adjustments in the mortgage rate priced with reference to HIBOR.

The outstanding value of mortgage loans increased by 0.2% to HK$801.1 billion at end-October compared with end-September. 

The mortgage delinquency ratio remained unchanged at 0.01% while the rescheduled loan ratio decreased to 0.02% in October, which has been the lowest level since September 2001 when the HKMA started to collect this information.

Annex

Hong Kong Monetary Authority
28 November 2011