HONG KONG, June 17, 2011 /PRNewswire-Asia/ -- Expected in the coming week are the latest results from the Hong Kong Monetary Authority (HKMA) residential mortgage survey, providing an update on the mortgage market in the territory. The previous release, highlighting results of the April survey, showed that mortgage applications fell 35% year on year; the biggest fall since February 2009. Indeed, the demand side of the market has dwindled over the past 6 months, as tighter restrictions on mortgages from the authorities have increased the cost of borrowing (via a staggered decrease in maximum LTV ratios). Loan approvals were also down by a similar amount, 32% on year ago levels, also registering the greatest fall since February 2009.
Lending to the UK real estate sector to remain flat
Recent data suggests that British banks are broadly on course to meeting the lending targets agreed with the government under Project Merlin. Despite this, some sectors continue to struggle with funding and real estate, in its various forms, is pretty much at the top of the list. The latest figures from the British Bankers' Association (BBA), due on Thursday 23rd, are likely to highlight the on-going pressures facing both the mortgage market and the wider property industry.
Bank of Canada appeals for moderation in the housing market
Mark Carney, the Governor of the Bank of Canada warned, in the most explicit terms to date, the risks involved with rising house prices. In a warning to households and banks, he appealed for 'moderation' in the housing market although stopping short of mentioning raising interest rates. Indeed, with housing-related debt in Canada almost tripling over the last decade to US$1.3 trillion and real estate debt being the single largest exposure for Canadian financial intuitions (40%), the Bank of Canada sees volatility in house prices as a significant threat to the overall Canadian economy.
Uncertain outlook for the French construction sector
The INSEE June monthly business survey of the French building industry is due Wednesday 22nd. Although the May survey revealed a modest deterioration over the month in some indicators, the results suggest overall that conditions are still much improved compared to the beginning of the year; building activity is rising now and confidence has recovered to normal levels. This overall impression is also mirrored by the European Commission (EC) builders' survey (relating to France), which also extends to the May period.
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