Hong Kong Mortgage Market Sees Uptick in Applications for January 2025

The
Hong
Kong
Monetary
Authority
(HKMA)
has
released
its
residential
mortgage
survey
results
for
January
2025,
revealing
a
notable
increase
in
the
number
of
mortgage
applications.
According
to

Hong
Kong
Monetary
Authority,
mortgage
applications
rose
by
3.3%
from
the
previous
month,
totaling
6,516
applications.

Mortgage
Loan
Approvals
and
Drawdowns

Despite
the
uptick
in
applications,
the
total
value
of
mortgage
loans
approved
in
January
2025
saw
a
decline
of
2.1%
compared
to
December
2024,
amounting
to
HK$25
billion.
Within
this
figure,
loans
for
primary
market
transactions
increased
significantly
by
15.5%
to
HK$10
billion.
Conversely,
loans
for
secondary
market
transactions
decreased
by
11.7%
to
HK$12.2
billion,
and
refinancing
loans
fell
by
8.8%
to
HK$2.9
billion.

However,
mortgage
loans
drawn
down
in
January
2025
experienced
a
substantial
rise,
increasing
by
17.6%
from
the
previous
month
to
reach
HK$15.6
billion.

Loan
Pricing
and
Outstanding
Balances

The
report
also
highlighted
a
shift
in
the
pricing
of
new
mortgage
loans.
The
proportion
of
loans
priced
with
reference
to
the
Hong
Kong
Interbank
Offered
Rate
(HIBOR)
increased
from
91.3%
in
December
2024
to
93%
in
January
2025.
Meanwhile,
the
ratio
of
loans
priced
against
best
lending
rates
decreased
from
4.1%
to
3.4%
during
the
same
period.

The
outstanding
value
of
mortgage
loans
grew
slightly
by
0.1%
month-on-month,
reaching
HK$1,872.9
billion
at
the
end
of
January
2025.

Delinquency
and
Rescheduled
Loan
Ratios

The
mortgage
delinquency
ratio
remained
remarkably
low
at
0.12%,
with
the
rescheduled
loan
ratio
holding
steady
at
nearly
0%,
indicating
a
stable
financial
environment
despite
the
fluctuations
in
loan
approvals
and
drawdowns.

The
HKMA’s
findings
provide
a
comprehensive
overview
of
the
current
state
of
the
mortgage
market
in
Hong
Kong,
reflecting
both
the
challenges
and
positive
developments
within
the
sector.

Image
source:
Shutterstock