MReferral, the mortgage broker arm of Midland Realty (Holdings), has forecast new home-loan demand this year could decline by more than 30 per cent as an increasing number of potential home buyers defer their purchases amid market uncertainty.
Chief executive Albert Wong said the company had revised down its forecast for total mortgage loan approvals to $67 billion from its earlier projection of $73 billion.
The latest forecast was about 31 per cent lower than last year's $98.5 billion figure, Mr Wong said.
The adjustment was made after a 16 per cent fall in the overall residential transaction volume after the government said more measures to stabilise the slumping property market would be announced in October.
Early this month, Secretary for Housing, Planning and Lands Michael Suen Ming-yeung said the government was considering relaxing the mortgage ceiling for second-hand flats, which at present stands at 70 per cent of the purchase price.
Mr Suen also said the government could further ease anti-speculation measures and could reduce the rate of stamp duty on residential property transactions.
