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Residential mortgage survey results for September 1995

Growth in residential mortgage loans for the purchase of properties in Hong Kong picked up in September, 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 1.6% in September (0.9% in August) to $264.5 billion. (The percentage change has been adjusted to allow for the reclassification and sale of loans by some institutions amounting to $0.4 billion during the month.) The growth rate is well above the monthly average of 1.1% over the last twelve months.

The annualised rate of growth in lending over the last three months slightly increased to 14.7%, compared with 14.6% in the three-month period to August. The twelve-month average of outstanding loans showed an annualised growth rate of 13.4%, compared with 12.4% in August.

"The faster growth in lending reflected increased sales in the primary market in late August," said Mr David Carse, the Deputy Chief Executive (Banking) of HKMA.

The amount of new loans approved but not yet drawn rose by $0.3 billion (6.5%) to $4.9 billion in September.

"Judging from these figures, and the sale of new properties late in the month, the growth in lending should continue at a sustained pace in October," Mr Carse said.

Lending for the purchase of properties in China increased by 2.1% to $5.2 billion in September. Gross loans made in September slightly decreased both in number (to 210 from 211) and in amount (to $183 million from $185 million). New loans approved in September fell in number (to 266 from 269) but increased in amount (to $187 million from $180 million).