Residential Mortgage Survey Results for April 1998

New mortgage lending declined in April 1998.

The amount of gross new loans made fell by 18.6% from $12.6 billion in March to $10.3 billion in April (compared with the 54.4% increase in March). The average size of new loans decreased to $1.90 million in April compared to $2.10 million in March.

New loans approved during the month also dropped by 30.1% to $10.2 billion ($14.6 billion in March). Loans approved during the month but not yet drawn decreased by 20.1% from $8.1 billion in March to $6.4 billion in April.

The amount of outstanding mortgage loans increased by 0.73% in April, compared with 1.43% growth in March. The annualised rate of growth of outstanding loans in the three months to April increased to 11.9% from 11.7% in March. The average change over the last twelve months decreased to 21.4% from 23.3% in March.

On the pricing front, the percentage of new loans priced at more than 1% above best lending rate dropped from 64.4% to 58.8% in April, indicating some easing in lending terms.

"In view of the low level of undrawn lending commitments in April and the current market conditions, loan growth is expected to remain subdued in May," said Mr. David Carse, Deputy Chief Executive of the HKMA.

Gross loans for the purchase of properties in Mainland China decreased to $122 million in April from $169 million in March. The amount of outstanding loans decreased marginally by 0.16% to $8.0 billion.

Hong Kong Monetary Authority

27 May 1998

Residential Mortgage Survey Results for April 1998

* Adjusted for the effect of sale of mortgage loans to HKMC by an institution amounting to $341 million

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.