Hong Kong's Mortgage Market Sees Uptick in November 2024

The Hong Kong Monetary Authority (HKMA) has released its residential mortgage survey results for November 2024, revealing significant shifts in the city's mortgage landscape. The number of mortgage applications rose by 9.7% from the previous month, totaling 7,995 applications, according to the Hong Kong Monetary Authority.

Mortgage Loans Surge

In November, the total value of approved mortgage loans surged by 27.7% compared to October, reaching HK$24.2 billion. This increase was driven by substantial growth in loans for both primary and secondary market transactions. Mortgage loans for primary market transactions climbed by an impressive 46.2% to HK$7.9 billion, while those for secondary market transactions rose by 20.3% to HK$13.7 billion. Additionally, loans for refinancing experienced a 20.1% growth, amounting to HK$2.6 billion.

Loan Drawdowns and Pricing Trends

Despite the uptick in approvals, mortgage loans drawn down in November decreased by 5.2% from October, totaling HK$10.6 billion. A notable trend was observed in the pricing of new mortgage loans. The proportion of loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) increased from 89.2% in October to 92.2% in November. Conversely, loans priced with reference to best lending rates saw a decline from 3.6% to 2.6% over the same period.

Outstanding Loans and Delinquency

The total outstanding value of mortgage loans experienced a slight decline of 0.1%, ending November at HK$1,871 billion. The mortgage delinquency ratio remained low at 0.11%, while the rescheduled loan ratio stayed nearly unchanged at 0%.

The HKMA's report indicates a robust performance in Hong Kong's mortgage market despite a minor dip in loan drawdowns, reflecting ongoing confidence in the city's real estate sector.