October residential mortgage survey results released
The growth of residential mortgage loans for the purchase of properties in Hong Kong grew rapidly in October, 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% in October (1% in September) to $313.9 billion. The growth rate is highest since June 1995 and is well above the monthly average of 1.4% over the last 12 months.
"The rapid growth in lending reflected the increased activity in both the primary and secondary residential property markets in September," said the Deputy Chief Executive of HKMA, Mr David Carse.
The annualised rate of growth in lending over the last three months increased to 14.7% from 12.8% in the three-month period to September. The 12-month average of outstanding loans showed an annualised growth rate of 17%, compared with 15.5% in September.
The amount of new loans approved but not yet drawn further increased by $1.6 billion (15.7%) to $11.5 billion in October.
"These figures, and the continued activity in the secondary residential property market in October, suggest that loans will continue to grow at a rapid rate in November," said Mr Carse.
The amount of residential mortgage loans associated with co-financing schemes accounted for 3.5% of total mortgage lending of the 33 surveyed institutions at end- October. Of the $18.3 billion new loans approved during October, about 84.5% was accounted for by properties aged 15 years or below.
Lending for the purchase of properties in China increased by 1.8% to $6 billion in October. Gross loans made in October increased both in number (to 348 from 214) and in amount (to $216 million from $133 million). New loans approved in October increased in number (to 319 from 316) but decreased in amount (to $286 million from $308 million).
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