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 June decreased by 8.5% to HK$16.7 billion, the first decline in five months.
New loans approved by the AIs also decreased, by 12.6%, to HK$14.8 billion. The decline was due to the reduction in approvals for secondary market transactions and refinancing loans by 15.6% and 14.1% respectively. By contrast, approvals for primary market transactions increased by 10.6%. The number of new applications reduced by 11.7%.
The proportion of new loan approvals priced at more than 2.5% below the best lending rate decreased further to 40.4% from 52.2% in May.
The outstanding value of mortgage loans rose by 0.6% to HK$543.3 billion.
The mortgage delinquency ratio improved further to 0.22% from 0.24% in May. With the rescheduled loan ratio edging down to 0.38% from 0.40%, the combined ratio improved to 0.60% from 0.63% in May.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Hing-Fung Wong, Resource Co-ordinator, at 2878 1802
Hong Kong Monetary Authority
25 July 2005