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Residential mortgage survey results for April
There was sharp growth in residential mortgage loans for the purchase of properties in Hong Kong in April, according to the results of the latest monthly survey conducted by the Hong Kong Monetary Authority (HKMA).
The latest figures show that the total amount of outstanding mortgage lending by the 33 institutions in the survey rose by 2.4% in April (0.3% in March) to $245.3 billion from $239.6 billion. The growth rate is the highest since August 1993 and is well above the monthly average of 0.85% over the last twelve months.
"The growth rate for April is in line with our expectations. It reflects the increased activity in the primary market for residential properties during March," the Deputy Chief Executive (Banking) of HKMA, Mr David Carse said.
The annualised rate of growth in lending over the last three months increased to 11.9%, compared with 3.9% in the three-month period to March. The twelve-month average of outstanding loans showed an annualised growth rate of 10.2% compared with 9.5% in March.
The amount of new loans approved but not yet drawn fell by 24.9% or $2.3 billion to $6.9 billion in April which is still a high level by recent standards.
"These figures suggest that the outstanding loans will continue to grow quite rapidly in May though at a reduced rate," said Mr Carse.
Lending for the purchase of properties in China increased by 1.0% to $4.75 billion in April from $4.70 billion in the preceding month. Gross loans made in April decreased both in number (to 189 from 293) and in amount (to $123 million from $161 million). New loans approved in April fell in number (to 185 from 253) but slightly increased in amount (to $113 million from $112 million).