Mortgage activity in July continued at the steadier pace of recent months according to the HKMA's monthly survey on residential mortgage lending.
The amount of gross new loans made fell slightly by 0.7% from $9.38 billion in June to $9.31 billion in July (compared with the 1.5% decrease in June). The average size of new loans decreased to $1.60 million in July compared to $1.68 million in June.
New loans approved during the month dropped by 9.1% to $10.5 billion ($11.6 billion in June). The bulk of this reflected activity in the primary market. Loans approved during the month but not yet drawn rose by 6.3% from $7.36 billion in June to $7.83 billion in July.
With regard to the new loans approved during July, the average loan-to-value ratio of these loans was 60% and the average contractual life was 226 months. 99.3% of these loans are related to owner-occupied properties.
The amount of outstanding mortgage loans increased by 0.81% in July, compared with 0.78% growth in June. The annualised rate of growth of outstanding loans in the three months to July increased to 9.2% from 8.9% in June. The average change over the last twelve months decreased to 13.7% from 16.9% in June.
The loan delinquency ratio (measured by the ratio of mortgage loans overdue for more than 3 months to total outstanding mortgage loans) edged up slightly to 0.34% as at July 1998 (compared with 0.29% in June).
On the pricing front, mortgage rates eased with only 33.8% of new loans granted at more than 1% above best lending rate (compared with 38.9% in June). There was a significant increase in the amount of loans granted at 50 basis points above best lending rate (from 0.2% in June to 14.8% in July), the bulk of which was attributed to primary market activities.
"Under the current market conditions, mortgage loan growth is expected to remain at a moderate level. The latest delinquency ratio shows the continuing high quality of residential mortgage loans," said Mr. David Carse, Deputy Chief Executive of the HKMA.
Gross loans for the purchase of properties in Mainland China decreased slightly from $128 million in June to $116 million in July. The amount of outstanding loans decreased marginally by 0.31% to $7.86 billion.
Hong Kong Monetary Authority
26 August 1998
Residential Mortgage Loans in Hong Kong
| Results of Survey for July 1998 |
|
|
|
|
Jul-98 |
|
Jun-98 |
|
|
|
|
HK$m |
|
HK$m |
| 33 Authorised Institutions |
|
|
|
|
|
|
|
| 1. |
Gross new loans made during month |
|
|
|
|
|
|
|
|
a. |
Amount of new loans |
|
9,314 |
|
9,384 |
|
b. |
Monthly change in amount |
|
-0.7% |
|
-1.5% |
|
c. |
Number of new loans |
|
5,831 |
|
5,576 |
|
d. |
Average size of new loans |
|
1.60 |
|
1.68 |
|
|
|
|
|
|
|
| 2. |
New loans approved during month |
|
|
|
|
|
|
|
|
a. |
Amount of approvals |
|
10,505 |
|
11,559 |
|
b. |
Monthly change in approvals |
|
-9.1% |
|
10.1% |
| # |
c. |
Number of applications |
|
7,788 |
|
8,229 |
|
d. |
Number of approvals |
|
6,559 |
|
6,725 |
|
e. |
Average size of approvals |
|
1.60 |
|
1.72 |
| # |
f. |
Average loan-to-value ratio (%) |
|
60.08 |
|
59.86 |
| # |
g. |
Average contractual life (months) |
|
226.00 |
|
230.00 |
| # |
h. |
Owner-occupied properties (%) |
|
99.30 |
|
99.30 |
|
|
|
|
|
|
|
|
|
By Property age |
|
|
|
|
|
|
Property age - 15 years or below |
- amount |
9,408 |
|
10,256 |
|
|
|
- number |
5,605 |
|
5,761 |
|
|
Property age - above 15 years |
- amount |
1,097 |
|
1,303 |
|
|
|
- number |
954 |
|
964 |
|
|
Associated with co-financing schemes |
|
|
|
|
|
|
- amount |
|
1,236 |
|
1,485 |
|
|
- number |
|
611 |
|
720 |
|
|
|
|
|
|
|
| 3. |
New loans approved during month |
|
but not yet drawn |
|
a. |
Amount of approvals |
|
7,827 |
|
7,364 |
|
b. |
Number of approvals |
|
4,712 |
|
4,233 |
|
|
|
|
|
|
|
| 4. |
Amount of outstanding loans |
|
|
|
|
|
|
|
|
a. |
Amount of loans |
|
447,240 |
|
444,148 |
|
b. |
Monthly change in loans |
|
0.81% |
* |
0.78% |
|
c. |
Twelve-month change in loans |
|
14.0% |
* |
17.4% |
|
d. |
Average monthly changes over |
|
|
|
|
|
|
last three months (annualized) |
|
9.2% |
* |
8.9% |
|
|
last twelve months (annualized) |
|
13.7% |
* |
16.9% |
|
|
|
|
|
|
|
|
|
Associated with co-financing schemes |
|
|
|
|
|
|
- amount |
|
20,608 |
|
20,075 |
|
|
- number |
|
9,597 |
|
9,326 |
|
|
|
|
|
|
|
|
# |
Delinquency ratio (%) |
|
|
|
|
|
|
- more than 3 months |
|
0.34 |
|
0.29 |
|
|
- more than 6 months |
|
0.10 |
|
0.08 |
|
|
|
|
|
|
|
| 5. |
Interest margin on new loans approved during month |
|
|
|
|
|
|
|
|
a. |
At BLR |
|
0.3% |
|
0.4% |
|
b. |
More than 0% and up to 0.25% above BLR |
|
1.0% |
|
2.3% |
|
c. |
More than 0.25% and up to 0.5% above BLR |
|
14.8% |
|
0.2% |
|
d. |
More than 0.5% and up to 0.75% above BLR |
|
15.9% |
|
22.9% |
|
e. |
More than 0.75%and up to 1% above BLR |
|
25.2% |
|
26.8% |
|
f. |
More than 1% above BLR |
|
33.8% |
|
38.9% |
|
g. |
Others |
|
9.0% |
|
8.5% |
|
|
|
|
|
|
|
| * |
Adjusted for the effect of reclassification and sale of mortgage loans to HKMC |
|
by a number of institutions amounting to $500 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.
