XN000022-1996-05-24 — Page 4

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Residential mortgage survey results for April

Residential mortgage loans for the purchase of properties in Hong Kong continued to grow at a rapid pace in April, 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 increased by 1.6% (the same rate of growth as in March and February) to $289.6 billion. The growth rate is slightly above the monthly average of 1.5% over the last twelve months.

"The sustained growth of residential mortgage lending in April reflected the continued upturn of activity in the residential mortgage market," 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 19.8% from 18% in the three-month period to March. The 12-month average of outstanding loans showed an annualised growth rate of 17.7%, compared with 18.4% in March. The amount of new loans approved but not yet drawn increased by $0.2 billion (2.4%) to $7.8 billion in April.

"These figures, and the continued active residential property market in April, suggest that outstanding loans will continue to grow at a rapid rate in May," said Mr Carse.

HKMA released for the first time information on residential mortgage loans associated with co-financing schemes and the breakdown of new loans by age of property.

The amount of residential mortgage loans associated with co-financing schemes accounted for only 2.3% of total mortgage lending of the 33 surveyed institutions. Of the $12.6 billion new loans approved during April, about 86% were accounted for by

property aged 15 years or below.

Lending for the purchase of properties in China increased by 0.8% to $5.5 billion in April.

Gross loans made in April decreased both in number (to 300 from 342) and in amount (to $143 million from $154 million). New loans approved in April decreased in number (to 286 from 363) but increased in amount (to $198 million from $153 million).