XN000022-1995-06-26 — Page 3

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Residential mortgage survey results for May

Residential mortgage loans for the purchase of properties in Hong Kong continued to grow rapidly in May, 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 grew by 2.7% in May (2.4% in April) to $251.8 billion from $245.3 billion. The growth rate is much higher than the monthly average of 0.93% over the last twelve months.

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"The relatively high rate of growth in mortgage lending in May is a continuing reflection of the increased activity in the residential property market in recent months,' the Deputy Chief Executive (Banking) of HKMA, Mr David Carse, said.

Reflecting the higher growth in April and May, the annualised rate of growth in lending over the last three months increased to 23.0%, compared with 11.9% in the three-month period to April. The twelve-month average of outstanding loans showed an annualised growth rate of 11.2%, compared with 10.2% in April.

The amount of new loans approved but not yet drawn increased slightly by $0.1 billion (1.1%) to $7.0 billion in May.

"This figure, coupled with the continued activity in the primary market for residential properties, suggests that the growth rate will remain high in June," said Mr Carse.

Lending for the purchase of properties in China increased by 1.9% to $4.84 billion in May from $4.75 billion in the preceding month. Gross loans made in May increased both in number (to 291 from 189) and in amount (to $205 million from $123 million). New loans approved in May rose both in number (to 241 from 185) and in amount (to $159 million from $113 million).