According to the HKMA's monthly survey of residential mortgage lending (RML), new mortgage lending fell slightly in May but new loans approved during the month increased by about 30%. The loan delinquency ratio decreased to 1.42% from 1.43% in April.
The reporting population for the survey has been increased from 32 to 38 institutions, increasing the coverage of the survey from 92% to 96% of total RML business (see explanatory note attached).
Survey Results for May 2001
New mortgage lending fell slightly in May, according to the HKMA's monthly survey of residential mortgage lending, but new loans approved during the month increased by almost 30%.
The amount of gross new loans made in May decreased by 2.6% to HK$8.7 billion. The average size of new loans decreased to HK$1.29 million from HK$1.30 million in April.
After decreasing in April, new loans approved during May increased by 28.1% to HK$11.1 billion. New approvals for transactions in the primary market and the secondary market both grew by 32% to account for 27.5% and 44.2% of the total new loans approved respectively. Loans approved during May but not yet drawn also increased markedly, by 33.9% to HK$7.9 billion.
The average loan-to-value ratio of new loans approved rose marginally to 61.8% from 61.7% in April. The average contractual life lengthened to 209 months from 203 months. 99.3% of loans were related to owner-occupied properties.
On the pricing front, 73.7% of new loans approved were priced at more than 2% below the best lending rate, up slightly from 73.1% in April. 49.1% were priced at more than 2.25% below the best lending rate, down slightly from 49.5% in April.
The amount of outstanding mortgage loans shrank by 0.1% in May.
The loan delinquency ratio (measured by the ratio of mortgage loans overdue for more than 3 months to total outstanding mortgage loans) decreased to 1.42% from 1.43% in April.
"The interest rate cuts seem to have encouraged some revival in market sentiment in May as shown by the pickup in new loans approved," said Mr David Carse, Deputy Chief Executive of the HKMA. "But it is too soon to say whether this will be sustained."
Gross loans made for the purchase of properties in Mainland China decreased to HK$26 million from HK$66 million in April. The amount of outstanding loans decreased further by HK$115 million to HK$6.4 billion in May.
For further enquiries, please contact:
Caitlin Wong, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
28 June 2001
Encl.
- Explanatory Note
- Annex & Charts (new survey group)
- Notes to Annex (new survey group)
- Annex & Charts (old survey group)
- Notes to Annex (old survey group)
