Improvements in economic conditions and property market sentiment are reflected in the increase in property transactions seen in September.

New approvals increased 26.3% to $7.5 billion, attributable to the increase of 37.4% in approvals for primary market transactions and 25.8% in approvals for secondary ones. The number of applications for mortgages also increased, by 24.2%.

However, new loans drawn down fell in September by 23.4% to $5.8 billion owing to a decline in new approvals in August.

While the proportion of new approvals priced at more than 2% below the best lending rate remained unchanged at 92.9%, the proportion at more than 2.5% below the best lending rate increased to a new high of 51.3%.

The outstanding amount of mortgage loans fell 0.3% to $520.7 billion.

The mortgage delinquency ratio improved for the fourth consecutive month, to 1.05% from 1.09% in August. With the rescheduled loan ratio remaining unchanged at 0.55%, the combined ratio improved to 1.6%.

The Monetary Authority expects new mortgage lending to increase in October, with the increase in new approvals in September.

New loans drawn down for purchasing properties on the Mainland increased to $263 million. The amount of outstanding loans at end of the month was $6.4 billion.