According to the 24 authorized institutions (AIs) which participate in the HKMA's monthly survey of residential mortgage lending, new mortgage loans drawn down during April increased by 30.6% to HK$17.8 billion, mainly due to the draw down of loans approved in March.
New loans approved by the AIs also increased, by 17.6% to HK$22.4 billion. The growth was due to the increases in approvals for secondary market transactions and refinancing loans by 31.3% and 10.2% respectively. By contrast, approvals for primary market transactions declined by more than one quarter (25.1%). The number of new applications increased modestly by 7.4%
The average contractual life of newly approved loans increased further to 251 months from 250 months in March.
The proportion of new loan approvals priced at more than 2.5% below the best lending rate declined to 83.0%, from 93.7% in March.
The outstanding value of mortgage loans rose by 0.6% to HK$536.7 billion.
The mortgage delinquency ratio improved further to 0.26% from 0.29% in March. With the rescheduled loan ratio edging down to 0.41% from 0.42%, the combined ratio improved to 0.67% from 0.71% in March.
For further enquiries, please contact:
Hing-Fung Wong, Resource Co-ordinator, at 2878 1802 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
25 May 2005