The Hong Kong Monetary Authority (HKMA) has released the findings of its residential mortgage survey for September 2024, revealing a notable downturn in the mortgage market. According to the HKMA, the number of mortgage applications in September fell by 15.9% month-on-month, totaling 4,977 applications.

Decline in Mortgage Approvals

The survey highlighted a significant reduction in mortgage loans approved in September, which decreased by 20.6% from August, amounting to HK$17.3 billion. This decline was driven by a 27.2% drop in loans financing primary market transactions, which fell to HK$5.6 billion. Additionally, loans financing secondary market transactions also saw a decrease of 15.4%, reaching HK$10 billion. Mortgage loans for refinancing purposes experienced a 25.1% reduction, totaling HK$1.8 billion.

Mortgage Drawdowns and Interest Rate Trends

Despite the overall decline in approvals, mortgage loans drawn down during September only saw a minor decrease of 3.6% compared to August, amounting to HK$15.4 billion. The ratio of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) remained stable at 88.6% month-on-month. However, the ratio of new loans priced with reference to best lending rates fell from 6% in August to 4.2% in September.

Outstanding Loans and Delinquency Rates

Despite the downturn in new applications and approvals, the outstanding value of mortgage loans at the end of September saw a marginal increase of 0.1%, reaching HK$1,872.8 billion. The mortgage delinquency ratio remained at a low level of 0.11%, and the rescheduled loan ratio held steady at nearly 0%.

For more detailed information, the full report is available on the Hong Kong Monetary Authority website.

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