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Residential Mortgage Survey Results for September 1998

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

The amount of gross new loans made fell by 23.8% from $8.43 billion in August to $6.43 billion in September (compared with the 9.5% decrease in August). The average size of new loans decreased to $1.37 million in September from $1.62 million in August.

New loans approved during the month, however, rose significantly by 31.3% to $8.0 billion ($6.1 billion in August) mainly as a result of primary market activities in September. Loans approved during the month but not yet drawn also increased considerably by 40.6% from $3.73 billion in August to $5.24 billion in September.

With regard to the new loans approved during September, the average loan-to-valuation ratio of these loans was 60.2% (58% in August) and the average contractual life was 227 months (217 months in August). 99.5% of these loans were related to owner-occupied properties.

The amount of outstanding mortgage loans increased by 0.37% in September, compared with 0.64% growth in August. The annualised rate of growth of outstanding loans in the three months to September decreased to 7.4% from 9.1% in August. The average change over the last twelve months decreased to 9.4% from 12.0% in August.

The loan delinquency ratio (measured by the ratio of mortgage loans overdue for more than 3 months to total outstanding mortgage loans) was 0.53% at end-September 1998 (compared with 0.44% in August).

On the pricing front, mortgage rates eased further with only 15.3% of new loans granted at more than 1% above best lending rate (compared with 29.7% in August).

"Although market sentiment has improved recently, mortgage loan growth is expected to remain at a moderate level," said Mr. Y K Choi, Acting Deputy Chief Executive of the HKMA.

Gross loans for the purchase of properties in Mainland China decreased from $100 million in August to $86 million in September. The amount of outstanding loans decreased slightly by 0.60% to $7.88 billion.

Hong Kong Monetary Authority

23 October 1998

 

Residential Mortgage Loans in Hong Kong

Results of Survey for September 1998
        Sep 98   Aug 98  
        HK$m   HK$m  
33 Authorised Institutions
               
1. Gross new loans made during month
               
  a. Amount of new loans   6,425   8,427  
  b. Monthly change in amount   -23.8%   -9.5%  
  c. Number of new loans   4,677   5,205  
  d. Average size of new loans   1.37   1.62  
               
2. New loans approved during month
               
  a. Amount of approvals   7,979   6,079  
  b. Monthly change in approvals   31.3%   -42.1%  
# c. Number of applications   8,187   4,710  
  d. Number of approvals   5,646   4,055  
  e. Average size of approvals   1.41   1.50  
# f. Average loan-to-value ratio (%)   60.20   58.06  
# g. Average contractual life (months)   227.00   217.00  
# h. Owner-occupied properties (%)   99.47   99.23  
               
    By Property age          
    Property age - 15 years or below - amount 6,913   5,193  
      - number 4,762   3,268  
    Property age - above 15 years - amount 1,065   886  
      - number 884   787  
    Associated with co-financing schemes          
    - amount   1,403   375  
    - number   929   208  
               
3. New loans approved during month
  but not yet drawn
               
  a. Amount of approvals   5,244   3,731  
  b. Number of approvals   3,720   2,516  
               
4. Amount of outstanding loans
               
  a. Amount of loans   451,828   450,124  
  b. Monthly change in loans   0.37% * 0.64%  
  c. Twelve-month change in loans   9.5% * 12.1%  
  d. Average monthly changes over          
    last three months (annualized)   7.4% * 9.1%  
    last twelve months (annualized)   9.4% * 12.0%  
               
    Associated with co-financing schemes          
    - amount   22,214   21,450  
    - number   10,537   10,001  
               
  # Delinquency ratio (%)          
    - more than 3 months   0.53   0.44  
    - more than 6 months   0.16   0.12  
               
5. Interest margin on new loans approved during month
               
  a. At BLR   0.3%   0.6%  
  b. More than 0% and up to 0.25% above BLR   2.7%   0.5%  
  c. More than 0.25% and up to 0.5% above BLR   21.9%   6.9%  
  d. More than 0.5% and up to 0.75% above BLR   34.4%   25.4%  
  e. More than 0.75%and up to 1% above BLR   17.6%   27.2%  
  f. More than 1% above BLR   15.3%   29.7%  
  g. Others   7.8%   9.7%  
               
* Adjusted for the effect of sale and purchase of mortgage loans
  by a number of institutions amounting to -$17 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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