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Residential mortgage survey results for January

The growth of residential mortgage loans for the purchase of properties in Hong Kong slightly moderated in January, 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 1.2% in January (1.4% in December 1995) to $276 billion. The growth rate is slightly below the monthly average of 1.3% over the last 12 months.

"The growth rate in January reflects the modest trading activity in the property market during December 1995", said the Deputy Chief Executive (Banking) of HKMA, Mr David Carse.

The annualised rate of growth in lending over the last three months increased to 15.8% from 13.5% in the three-month period to December. The 12-month average of outstanding loans showed an annualised growth rate of 15.7%, compared with 15% in December 1995.

The amount of new loans approved but not yet drawn increased by $0.5 billion (9.3%) to $5.8 billion in January.

"These figures, coupled with the increased trading activity in both the primary and secondary property market in January, suggest that the growth rate of outstanding loans will be higher in February," said Mr Carse.

Lending for the purchase of properties in China increased by 1.3% to $5.4 billion in January. Gross loans made in January increased both in number (to 293 from 131) and in amount (to $147 million from $118 million).

New loans approved in January also increased both in number (to 279 from 222) and in amount (to $146 million from $131 million).

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