Residential mortgage survey results for July released
Residential mortgage loans for the purchase of properties in Hong Kong continued to grow at a fast rate in July, 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 1.5% in July (1.4% in June) to $303 billion. The percentage change has been adjusted to allow for the reclassification of loans by an institution amounting to $0.9 billion during the month.
The growth rate is slightly higher than the monthly average of 1.4% over the last 12 months.
Gross loans advanced during the month grew sharply, but the effect of this was offset by a substantially higher amount of repayments which rose by 23.5% to $13.1 billion during July.
"These figures reflect the refinancing of existing mortgages as well as demand for new mortgages arising from activity in the primary market in June," said the Deputy Chief Executive of HKMA, Mr David Carse.
The annualised rate of growth in lending over the last three months decreased to 17.7% from 18% in the three-month period to June. The 12-month average of outstanding loans showed an annualised growth rate of 16.6%, compared with 16.1% in June.
The amount of new loans approved but not yet drawn slightly decreased by $0.4 billion (3.7%) to $10.7 billion in July.
"These figures, coupled with the reduced activity in the primary market in July, suggest that the growth of residential mortgage loans may ease slightly in August," said Mr Carse.
The amount of residential mortgage loans associated with co-financing schemes accounted for 3% of total mortgage lending of the 33 surveyed institutions at end-July. Of the $17.1 billion new loans approved during the month, about 83% were accounted for by properties aged 15 years or below.
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