Property lending recorded strong growth in November according to
the HKMA's monthly survey on residential mortgage lending.
The amount of gross new loans made in November surged 60.5% to
$10.3 billion from $6.4 billion in October (compared with the 0.1%
decrease in October). The average size of new loans increased to
$1.48 million in November from $1.38 million in October.
New loans approved during the month also rose sharply by 48.5%
to $14.7 billion ($9.9 billion in October) mainly as a result of
active primary market activities. Loans approved during the month
but not yet drawn also increased significantly by 36.9% from $7.50
billion in October to $10.3 billion in November.
The average loan-to-valuation ratio of these loans was 58.8%
(59.2% in October) and the average contractual life was 218 months
(224 months in October). 99.4% of these loans were related to
owner-occupied properties.
The amount of outstanding mortgage loans increased by 1.09% in
November, compared with 0.22% growth in October. The annualised
rate of growth of outstanding loans in the three months to November
increased to 6.8% from 4.9% in October. The average change over the
last twelve months, however, decreased slightly to 8.7% from 8.8%
in October.
The loan delinquency ratio (measured by the ratio of mortgage
loans overdue for more than 3 months to total outstanding mortgage
loans) rose to 0.78% as at November 1998 (compared with 0.68% in
October).
On the pricing front, mortgage rates eased further with 58% of
the new loans granted at the best lending rate plus 0.5% or below
(compared with 49.6% in October).
"In view of improved market conditions, we expect new mortgage
lending to continue to grow in December. The delinquency ratio on
existing mortgage loans remains low on average," said Mr. Y. K.
Choi, Acting Deputy Chief Executive of the HKMA.
Gross loans for the purchase of properties in Mainland China
increased from $54 million in October to $78 million in November.
The amount of outstanding loans decreased slightly by 1.09% to
$7.71 billion.
Hong Kong Monetary Authority
29 December 1998
Residential Mortgage Loans in Hong Kong
| Results of
Survey for November 1998 |
|
|
|
|
Nov-98 |
|
Oct
98 |
|
|
|
|
HK$m |
|
HK$m |
| 33 Authorised
Institutions |
|
|
|
|
|
|
|
| 1. |
Gross new loans
made during month |
|
|
|
|
|
|
|
|
a. |
Amount of new loans |
|
10,298 |
|
6,416 |
|
b. |
Monthly change in amount |
|
60.5% |
|
-0.1% |
|
c. |
Number of new loans |
|
6,938 |
|
4,651 |
|
d. |
Average size of new loans |
|
1.48 |
|
1.38 |
|
|
|
|
|
|
|
| 2. |
New loans
approved during month |
|
|
|
|
|
|
|
|
a. |
Amount of approvals |
|
14,709 |
|
9,906 |
|
b. |
Monthly change in approvals |
|
48.5% |
|
24.2% |
| # |
c. |
Number of applications |
|
10,364 |
|
10,228 |
|
d. |
Number of approvals |
|
9,524 |
|
6,877 |
|
e. |
Average size of approvals |
|
1.54 |
|
1.44 |
| # |
f. |
Average loan-to-value ratio (%) |
|
58.77 |
|
59.19 |
| # |
g. |
Average contractual life (months) |
|
218.00 |
|
224.00 |
| # |
h. |
Owner-occupied properties (%) |
|
99.38 |
|
99.43 |
|
|
|
|
|
|
|
|
|
By Property age |
|
|
|
|
|
|
Property age - 15 years or below |
- amount |
13,078 |
|
9,040 |
|
|
|
- number |
8,010 |
|
6,037 |
|
|
Property age - above 15 years |
- amount |
1,650 |
|
866 |
|
|
|
- number |
1,514 |
|
840 |
|
|
Associated with co-financing
schemes |
|
|
|
|
|
|
- amount |
|
2,064 |
|
2,180 |
|
|
- number |
|
1,123 |
|
1,345 |
|
|
|
|
|
|
|
| 3. |
New loans approved during
month |
|
but not yet
drawn |
|
|
|
|
|
|
|
|
a. |
Amount of approvals |
|
10,261 |
|
7,496 |
|
b. |
Number of approvals |
|
6,701 |
|
5,182 |
|
|
|
|
|
|
|
| 4. |
Amount of
outstanding loans |
|
|
|
|
|
|
|
|
a. |
Amount of loans |
|
455,863 |
|
451,725 |
|
b. |
Monthly change in loans |
|
1.09% |
* |
0.22% |
|
c. |
Twelve-month change in loans |
|
8.7% |
* |
8.9% |
|
d. |
Average monthly changes over |
|
|
|
|
|
|
last three months (annualized) |
|
6.8% |
* |
4.9% |
|
|
last twelve months (annualized) |
|
8.7% |
* |
8.8% |
|
|
|
|
|
|
|
|
|
Associated with co-financing
schemes |
|
|
|
|
|
|
- amount |
|
25,842 |
|
23,709 |
|
|
- number |
|
12,751 |
|
11,474 |
|
|
|
|
|
|
|
|
# |
Delinquency ratio
(%) |
|
|
|
|
|
|
- more than 3 months |
|
0.78 |
|
0.68 |
|
|
- more than 6 months |
|
0.28 |
|
0.22 |
|
|
|
|
|
|
|
| 5. |
Interest margin
on new loans approved during month |
|
|
|
|
|
|
|
|
a. |
At BLR |
|
0.3% |
|
0.3% |
|
b. |
More than 0% and up to 0.25% above BLR |
|
21.9% |
|
5.3% |
|
c. |
More than 0.25% and up to 0.5% above BLR |
|
35.8% |
|
44.0% |
|
d. |
More than 0.5% and up to 0.75% above BLR |
|
18.6% |
|
22.6% |
|
e. |
More than 0.75%and up to 1% above BLR |
|
8.6% |
|
11.5% |
|
f. |
More than 1% above BLR |
|
7.2% |
|
9.3% |
|
g. |
Others |
|
7.6% |
|
7.0% |
|
|
|
|
|
|
|
| * |
Adjusted for the effect of reclassification and
sale of mortgage loans to HKMC |
|
by a number of institutions amounting to $784
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.
