Refinancing loans drive the increase, rising 33.7 per cent to HK$3 billion, the Hong Kong Monetary Authority says
Banks approved HK$26.6 billion (US$3.39 billion) worth of loans in May, a 5.3 per cent rise from a month earlier, according to official data on Monday. It was the highest total since May last year when lenders extended about HK$31.6 billion in loans, according to data compiled by agents.
The increase came from approved mortgage loans for refinancing, which climbed 33.7 per cent to HK$3 billion. Mortgage loans for new and lived-in homes declined by 4.2 per cent to HK$8.9 billion and 7.1 per cent to HK$14.6 billion, respectively, according to the HKMA.
Meanwhile, mortgage loan applications rose 5 per cent to 8,187 in May from April, the highest since March’s 8,456 applications.
“Interest rates have dropped significantly, and large developers continued to launch low-priced properties to attract first-time buyers and investors to enter the market, boosting the overall market sentiment,” said Eric Tso Tak-ming, chief vice-president of mortgage broker mReferral. “The real estate market will continue to stabilise and will drive the number of residential mortgages to rise further.”
