Hong Kong Mortgage Applications Drop by 12.2% in August 2024

According to the Hong Kong Monetary Authority (HKMA), the number of mortgage applications in August 2024 saw a significant decrease of 12.2% from the previous month, totaling 5,919 applications. This decline reflects a broader trend in the residential mortgage market.

Decrease in Approved Mortgage Loans

Mortgage loans approved in August 2024 also fell by 12.2% compared to July, amounting to HK$21.8 billion. The breakdown of these figures reveals that mortgage loans for primary market transactions decreased by 11.7% to HK$7.6 billion, while those for secondary market transactions dropped by 13.7% to HK$11.8 billion. Additionally, mortgage loans for refinancing purposes saw a reduction of 5.6%, totaling HK$2.4 billion.

Drawdowns and Pricing

The HKMA reported that the mortgage loans drawn down during August decreased by 2.9% compared to the previous month, reaching HK$15.9 billion. The ratio of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased from 89.8% in July to 88.6% in August. Conversely, the ratio of new mortgage loans priced with reference to best lending rates increased from 4.6% to 6% over the same period.

Outstanding Value and Delinquency Ratios

Despite these declines, the outstanding value of mortgage loans saw a slight month-on-month increase of 0.1%, reaching HK$1,870.3 billion by the end of August. The mortgage delinquency ratio remained stable at 0.1%, and the rescheduled loan ratio continued to hover near 0%.

For further details, the full report can be accessed on the Hong Kong Monetary Authority website.