BEIJING, June 1 -- China's central bank said yesterday the liability ratio of domestic house buyers is normal and mortgage borrowers have a strong capability of paying the loan, citing results from a survey it did in 10 major cities.

    The survey was conducted last November in Beijing, Shanghai, Tianjin, Chongqing, Guangzhou, Shenzhen, Chengdu, Nanjing, Hangzhou and Qingdao to get a fuller picture and knowledge of the nation's real estate market, the People's Bank of China said on its Website. But it did not reveal the survey size.

    As of the end of October, the average ratio of borrowers' mortgage to salary each month in the 10 cities was 35 percent, that is, a local resident paid 1,750 yuan (US$218.75) on average for a home mortgage if he earned 5,000 yuan monthly.

    The average ratio of liabilities, including housing mortgage and other debts such as auto loan, to salary each month is 38 percent, it said.

    The two percentage figures were below the risk level set by the China Banking Regulatory Commission in 2004 at 50 percent and 55 percent respectively, the central bank said.

    The survey also showed that the ratio between the home's sales value to the annual income of families who use loans to purchase was below eight in the 10 cities, except for Shanghai where the ratio was 10.

    Most domestic borrowers have a good record of paying back the loan to the banks as 81 respondents in the survey did not delay the monthly repayment.

    Fifteen percent forgot to pay due to business trips and negligence. Among all the borrowers, 35 percent have chosen to pay off ahead of schedule and 10 percent of them did that because of a rise in lending interest rates.

    Among all types of houses sold in the 10 cities, 14 percent were budget houses planned by local governments and sold at a lower price for low income families. Apartments accounted for the majority of 76 percent while serviced apartments took 8 percent, with the rest being villas, the survey showed.

    The ratio of owner-occupied property to vacant to leased one is 84 to 10 to 6.

    Most people are still inclined to buy a home rather than live in rented accommodation because 62 percent of respondents in the 10 cities said they did not consider renting a home. In Beijing, the percentage was 90 percent.