Residential Mortgage Survey Results for August 2011

The Hong Kong Monetary Authority announced the results of the residential mortgage survey for August 2011.

New mortgage loans drawn down during August decreased by 27.0% to HK$14.7 billion compared with July.

New loans approved in August fell by 10.3% to HK$15.8 billion compared with July.  Among these, approvals for primary market transactions declined by 9.2% to HK$2.5 billion while approvals for secondary market transactions declined by 11.9% to HK$10.5 billion.  Approvals for refinancing dropped by 5.1% to HK$2.8 billion.  The number of new applications in August rose by 5.0% compared with July to 9,682.

New mortgage loans priced with reference to best lending rates increased from 25.9% in July 2011 to 42.1% in August 2011, with the largest portion priced less than 2.25%. New mortgage loans priced with reference to HIBOR decreased to 55.8% in August, mainly reflecting banks’ upward adjustments in the mortgage rate priced with reference to HIBOR.

The outstanding value of mortgage loans increased by 0.4% to HK$797.1 billion at end-August compared with end-July.

The mortgage delinquency ratio and the rescheduled loan ratio remained unchanged at 0.01% and 0.03% respectively in August.

Annex

Hong Kong Monetary Authority
26 September 2011