jack anderson
December 31, 2024 08:48
The Hong Kong Monetary Authority reported that mortgage applications rose 9.7% in November 2024, with approved loans reaching HK$24.2 billion.
The Hong Kong Monetary Authority (HKMA) has released the results of its November 2024 residential mortgage survey, showing significant changes in Hong Kong’s mortgage landscape. According to the Hong Kong Monetary Authority, the number of mortgage applications increased 9.7% from the previous month to a total of 7,995.
Mortgage loan surge
The total amount of mortgage loans approved in November surged 27.7% compared to October, reaching HK$24.2 billion. This increase was driven by a significant increase in lending for both primary and secondary market transactions. Mortgage loans for primary market transactions increased 46.2% to HK$7.9 billion, while mortgage loans for secondary market transactions increased 20.3% to HK$13.7 billion. Additionally, loans for refinancing increased by 20.1% to HK$2.6 billion.
Loan decline and price trends
Despite the increase in approvals, mortgage loans drawn down in November fell 5.2% from October, totaling HK$10.6 billion. A notable trend has been observed in new mortgage loan prices. The proportion of loans priced by reference to the Hong Kong Interbank Offered Rate (HIBOR) increased from 89.2% in October to 92.2% in November. On the other hand, loans reflecting the highest loan interest rate decreased from 3.6% to 2.6% over the same period.
Outstanding loans and delinquencies
The total outstanding value of mortgage loans decreased slightly by 0.1%, ending November at HK$1.871 trillion. The mortgage loan delinquency rate remained low at 0.11%, and the rescheduled loan ratio remained virtually unchanged at 0%.
HKMA’s report shows solid performance in Hong Kong’s mortgage market despite a slight decline in loan withdrawals, reflecting continued confidence in the Hong Kong property sector.
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