THE volume of new mortgage loans approved by banks jumped 18 per cent month-on-month in October, according to Hong Kong Monetary Authority figures.
This meant by the end of last month banks had lined up $4.7 billion of property loans ready for the real estate market in November.
It was the fourth consecutive month of increased new mortgage lending from a year low in June when the Government announced its package of measures to curb excessive residential property market speculation.
It also adds weight to forecasts that the sluggish home sales market could soon be in line for a recovery.
Banks' Hong Kong dollar deposits are said to have been rising, the dangerous house price bubble deflating, and as a result some banks have become a little less rigid with granting new loans.
Deposits growth picked up in the past few months as the public is lured by higher interest rates on savings.
'Things now seem to have stabilised and confidence showing through,' said Crosby Securities research manager and banking analyst Raymond Lee.
