The Hong Kong Monetary Authority (HKMA) has recently published its findings on the residential mortgage market for January 2025. The report reveals a significant increase in the number of mortgage applications, with a rise of 3.3% compared to the previous month. In total, there were 6,516 mortgage applications submitted during this period.
Although there was a surge in applications, the total value of approved mortgage loans experienced a decline of 2.1% compared to December 2024, amounting to HK$25 billion. However, it is worth noting that loans for primary market transactions saw a substantial increase of 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.
On the other hand, mortgage loans drawn down in January 2025 saw a significant rise, increasing by 17.6% from the previous month to reach HK$15.6 billion.
The report also highlights 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. In contrast, loans priced against best lending rates decreased from 4.1% to 3.4% during the same period.
Furthermore, the outstanding value of mortgage loans experienced a slight growth of 0.1% month-on-month, reaching HK$1,872.9 billion at the end of January 2025.
In terms of delinquency and rescheduled loans, the mortgage delinquency ratio remained remarkably low at 0.12%, while the rescheduled loan ratio held steady at nearly 0%. These figures indicate a stable financial environment despite the fluctuations in loan approvals and drawdowns.
Overall, the HKMA’s survey provides a comprehensive overview of the current state of the mortgage market in Hong Kong, showcasing both the challenges and positive developments within the sector.
