XN000022-1994-10-21 — Page 8

FRIDAY, OCTOBER 21, 1994

6

RESIDENTIAL MORTGAGE SURVEY RESULTS FOR SEPTEMBER 1994

* * * *.

THE GROWTH IN RESIDENTIAL MORTGAGE LOANS FOR THE PURCHASE OF PROPERTIES IN HONG KONG REMAINED MODEST IN SEPTEMBER, ACCORDING TO THE LATEST MONTHLY SURVEY CONDUCTED BY THE HONG KONG MONETARY AUTHORITY (HKMA).

THE LATEST FIGURES SHOWED THAT THE TOTAL AMOUNT OF OUTSTANDING MORTGAGE LENDING BY THE 33 INSTITUTIONS IN THE SURVEY INCREASED BY 0.71 PER CENT IN SEPTEMBER (0.65 PER CENT IN AUGUST) TO $241.6 BILLION FROM $239.9 BILLION, THE GROWTH RATE IS BELOW THE MONTHLY AVERAGE OF 1.0 PER CENT OVER THE LAST 12 MONTHS.

"THE GROWTH RATE FOR SEPTEMBER IS IN LINE WITH OUR EXPECTATIONS," THE DEPUTY CHIEF EXECUTIVE (BANKING) OF HKMA, MR DAVID CARSE, SAID.

"GIVEN

THE RAPID INCREASE IN MORTGAGE LENDING IN THE PAST, WE BELIEVE THAT THIS IS A HEALTHY TREND WHICH SHOULD NOT BE SEEN AS A SIGNAL TO RELAX CONTROL OVER SUCH LENDING.

THE

ANNUALISED RATE OF GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS FURTHER DROPPED TO 7.3 PER CENT, COMPARED WITH 11.9 PER CENT IN THE THREE-MONTH PERIOD TO AUGUST.

MOREOVER, THE 12-MONTH AVERAGE OF OUTSTANDING LOANS HAS FURTHER SLOWED TO AN ANNUALISED GROWTH RATE OF 12.5 PER CENT COMPARED WITH 13.4 PER CENT IN AUGUST.

NEW LOANS APPROVED BUT NOT YET DRAWN DECREASED SLIGHTLY BY $0.1 BILLION OR 2.4 PER CENT TO $4.0 BILLION IN SEPTEMBER.

"THESE FIGURES SUGGEST THAT THE GROWTH OF OUTSTANDING IN OCTOBER WILL CONTINUE TO BE MODEST, MR CARSE SAID.

**

LOANS

BY $115 FROM $4.09

LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA ROSE MILLION (2.8 PER CENT) IN SEPTEMBER TO $4.21 BILLION

BILLION, COMPARED WITH THE 0.3 PER CENT GROWTH IN AUGUST.

AS IN AUGUST, THE INCREASE WAS WHOLLY DUE TO LENDING FOR RESIDENTIAL PROPERTIES.

GROSS LOANS MADE IN SEPTEMBER INCREASED IN BOTH NUMBER (TO 431 FROM 251) AND AMOUNT (TO $162 MILLION FROM $104 MILLION).

HOWEVER, NEW LOANS APPROVED IN SEPTEMBER FELL IN BOTH NUMBER (TO 160 FROM 237) AND AMOUNT (TO $87 MILLION FROM $113 MILLION).

/Residential Mortgage