Post by Sapphire Capital on Jul 17, 2008 1:58:30 GMT 4
Mortgage Lending In China
Mortgage lending in China has been growing at a rate of 54.9% between 2000 and 1H2004.The total mortgage lending stood merely at 8.5% of total loans, 11.1% of total GDP, in 2003 versus 34.3% of total loans and 50% of total GDP in Hong Kong. Mortgages being considered as the best lending opportunity, with good asset quality (the non-performing loan ratio is less than 1.5%) and good growth potential (mortgage lending grew 57% year on year in 1H2004). The housing privatizations since 1998 have made mortgage debt a tiny portion of total property assets outstanding. Total outstanding mortgage loans, at CNY1.3 tn, is about 5% of the total value of urban residential property.
Housing Mortgage In China
The housing mortgage in China is not so old in comparison to others. In China the biggest provider of home mortgage loans is the China Construction Bank (CCB). The housing loans made by the four state-owned commercial banks were RMB355.6 billion (about U.S. $43 billion) in the year 1999. From the total loans, RMB217.2 billion (about U.S. $26.3 billion) went to real estate developers and RMB 126 billion (U.S. $15.2 billion) to the mortgage loan sector accounting for about 35% of the country's overall real estate loan amount at the end of 1999. Presently the foreign lenders are allowed into home loan areas after China's accession to the WTO.
Residential Housing investments In China
The success of the reforms in 1998 has translated into a booming domestic property sector and acceleration in housing investments in china. The share of residential housing investment as a percentage of GDP has risen to 5.6% in 2003, up from less than 3% before 1998 and less than 1% before the 1990s. This is in comparison to other developed or emerging economies that had undertaken a higher share of residential housing investments for decades.
Mortgage lending in China has been growing at a rate of 54.9% between 2000 and 1H2004.The total mortgage lending stood merely at 8.5% of total loans, 11.1% of total GDP, in 2003 versus 34.3% of total loans and 50% of total GDP in Hong Kong. Mortgages being considered as the best lending opportunity, with good asset quality (the non-performing loan ratio is less than 1.5%) and good growth potential (mortgage lending grew 57% year on year in 1H2004). The housing privatizations since 1998 have made mortgage debt a tiny portion of total property assets outstanding. Total outstanding mortgage loans, at CNY1.3 tn, is about 5% of the total value of urban residential property.
Housing Mortgage In China
The housing mortgage in China is not so old in comparison to others. In China the biggest provider of home mortgage loans is the China Construction Bank (CCB). The housing loans made by the four state-owned commercial banks were RMB355.6 billion (about U.S. $43 billion) in the year 1999. From the total loans, RMB217.2 billion (about U.S. $26.3 billion) went to real estate developers and RMB 126 billion (U.S. $15.2 billion) to the mortgage loan sector accounting for about 35% of the country's overall real estate loan amount at the end of 1999. Presently the foreign lenders are allowed into home loan areas after China's accession to the WTO.
Residential Housing investments In China
The success of the reforms in 1998 has translated into a booming domestic property sector and acceleration in housing investments in china. The share of residential housing investment as a percentage of GDP has risen to 5.6% in 2003, up from less than 3% before 1998 and less than 1% before the 1990s. This is in comparison to other developed or emerging economies that had undertaken a higher share of residential housing investments for decades.