Residential Mortgage Survey Results for July 2005

Press Releases

25 Aug 2005

Residential Mortgage Survey Results for July 2005

According to the 24 authorized institutions (AIs) which participate in the HKMA's monthly survey of residential mortgage lending, the value of new mortgage loans drawn down during July fell for the second consecutive month, by a third, to HK$11.0 billion.

New loans approved by the AIs also decreased by a third, to HK$9.9 billion. There was an across-the-board reduction in the number and value of all types of approvals. In value terms, primary market transactions fell by 49.3%, refinancing loans by 41.4% and secondary market transactions by 27.7%. The number of new applications also fell by 30.5%.

The proportion of new loan approvals priced at more than 2.5% below the best lending rate decreased further to 17.3% compared with 40.4% in June. The proportion of new loan approvals priced at more than 2.0% and up to 2.25% below the best lending rate increased to 25.1% from 13.4% in June to become the most commonly used interest rate band for new approvals in July.

The outstanding value of mortgage loans fell by 0.2% to HK$542.0 billion.

The mortgage delinquency ratio remained unchanged at 0.22%. With the rescheduled loan ratio edging down to 0.37% from 0.38%, the combined ratio improved to 0.58%1 from 0.60% in June.

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 August 2005

1 Not the sum of the two ratios, due to rounding.

 

Annex

Notes to Annex

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Last revision date : 25 August 2005