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