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Press Releases

Residential Mortgage Survey Results for August 1998

Mortgage activity continued to moderate in August according to the HKMA's monthly survey on residential mortgage lending.

The amount of gross new loans made fell by 9.5% from $9.31 billion in July to $8.43 billion in August (compared with the 0.7% decrease in July). The average size of new loans increased to $1.62 million in August from $1.60 million in July.

New loans approved during the month dropped significantly by 42.1% to $6.1 billion ($10.5 billion in July), reflecting the low level of transactions in July and August. Loans approved during the month but not yet drawn fell by 52.3% from $7.83 billion in July to $3.73 billion in August.

With regard to the new loans approved during August, the average loan-to-valuation ratio of these loans was 58% (60% in July) and the average contractual life was 217 months (226 months in July). 99.2% of these loans were related to owner-occupied properties.

The amount of outstanding mortgage loans increased by 0.64% in August, compared with 0.81% growth in July. The annualised rate of growth of outstanding loans in the three months to August decreased to 9.1% from 9.2% in July. The average change over the last twelve months decreased to 12.0% from 13.7% in July.

As expected, the loan delinquency ratio (measured by the ratio of mortgage loans overdue for more than 3 months to total outstanding mortgage loans) continued to rise in August, reaching 0.44% (compared with 0.34% in July). However, the overall quality of the mortgage portfolio remains good.

On the pricing front, mortgage rates eased slightly with only 29.7% of new loans granted at more than 1% above best lending rate (compared with 33.8% in June).

"Although primary market activity revived in September, new lending is expected to remain subdued," said Mr. David Carse, Deputy Chief Executive of the HKMA.

Gross loans for the purchase of properties in Mainland China decreased from $116 million in July to $100 million in August. The amount of outstanding loans increased slightly by 0.75% to $7.92 billion.

Hong Kong Monetary Authority

23 September 1998

 

Residential Mortgage Loans in Hong Kong

Results of Survey for August 1998
        Aug-98   Jul-98
        HK$m   HK$m
33 Authorised Institutions
             
1. Gross new loans made during month
             
  a. Amount of new loans   8,427   9,314
  b. Monthly change in amount   -9.5%   -0.7%
  c. Number of new loans   5,205   5,831
  d. Average size of new loans   1.62   1.60
             
2. New loans approved during month
             
  a. Amount of approvals   6,079   10,505
  b. Monthly change in approvals   -42.1%   -9.1%
# c. Number of applications   4,710   7,788
  d. Number of approvals   4,055   6,559
  e. Average size of approvals   1.50   1.60
# f. Average loan-to-value ratio (%)   58.06   60.08
# g. Average contractual life (months)   217.00   226.00
# h. Owner-occupied properties (%)   99.23   99.30
             
    By Property age        
    Property age - 15 years or below - amount 5,193   9,408
      - number 3,268   5,605
    Property age - above 15 years - amount 886   1,097
      - number 787   954
    Associated with co-financing schemes        
    - amount   375   1,236
    - number   208   611
             
3. New loans approved during month
  but not yet drawn
             
  a. Amount of approvals   3,731   7,827
  b. Number of approvals   2,516   4,712
             
4. Amount of outstanding loans
             
  a. Amount of loans   450,124   447,240
  b. Monthly change in loans   0.64% * 0.81%
  c. Twelve-month change in loans   12.1% * 14.0%
  d. Average monthly changes over        
    last three months (annualized)   9.1% * 9.2%
    last twelve months (annualized)   12.0% * 13.7%
             
    Associated with co-financing schemes        
    - amount   21,450   20,608
    - number   10,001   9,597
             
  # Delinquency ratio (%)        
    - more than 3 months   0.44   0.34
    - more than 6 months   0.12   0.10
             
5. Interest margin on new loans approved during month
             
  a. At BLR   0.6%   0.3%
  b. More than 0% and up to 0.25% above BLR   0.5%   1.0%
  c. More than 0.25% and up to 0.5% above BLR   6.9%   14.8%
  d. More than 0.5% and up to 0.75% above BLR   25.4%   15.9%
  e. More than 0.75%and up to 1% above BLR   27.2%   25.2%
  f. More than 1% above BLR   29.7%   33.8%
  g. Others   9.7%   9.0%
             
* Adjusted for the effect of reclassification by a number of institutions amounting to $2 million.
             
# Statistics collected from June 1998 onwards.

 

RESIDENTIAL MORTGAGE LOANS IN HONG KONG
(33 institutions)

 

GROSS NEW LOANS MADE DURING THE MONTH

 

NEW LOANS APPROVED DURING MONTH

NEW LOANS APPROVED BUT NOT YET DRAWN

 

Remarks: The significant fall of outstanding balance in December 1994 was due to the effect of reclassification, securitization and sale of loans by some institutions.

Last revision date: 1 August 2011
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