LOANS for residential property now account for almost 25 per cent of all loans made for all purposes in Hongkong compared with just 10 per cent of the total a decade ago.
But in the 12 months to September the annual rate of growth in loans for housing dropped to less than 20 per cent - still a worthwhile rate, but less than the 35 per cent growth in 1991.
Sales and purchase agreements completed in December last year at 7,970 were up slightly on November, but down 35 per cent on December 1991. Their total value was down to $20.36 billion.
For the whole year there were 135,261 agreements registered, down 23.5 per cent on 1991, but total value was up 13.1 per cent to $322.5 billion, reflecting higher average flat prices.
It is these sorts of figures that lie behind the current debate on whether to ease the mortgage ceiling of 70 per cent of valuation imposed in November 1991 to cool property speculation.
Since the imposition of the 70 per cent ceiling on mortgage loans, the growth in lending has slowed and in the 12 months to September was just under 20 per cent.