Hong Kong Mortgage Applications Drop, Loans Approved Surge in September 2025
Joerg Hiller Nov 01, 2025 09:08
Hong Kong Monetary Authority reports a 1.1% decrease in mortgage applications for September 2025, while approved loans rise by 9.4% to HK$31.4 billion.
Mortgage Applications Decline
The Hong Kong Monetary Authority (HKMA) has released its residential mortgage survey for September 2025, revealing a slight decrease in the number of mortgage applications. According to the HKMA, applications fell by 1.1% compared to the previous month, totaling 8,316 applications.
Increase in Mortgage Loans Approved
Despite the decrease in applications, the survey showed a significant rise in the value of mortgage loans approved. September saw an increase of 9.4% from August, reaching HK$31.4 billion. This growth was driven by a notable rise in loans for primary market transactions, which surged by 17.5% to HK$12.6 billion, and a 6.1% increase in loans for secondary market transactions, amounting to HK$15.5 billion. However, loans for refinancing experienced a decline of 2.4%, down to HK$3.2 billion.
Drawn Down Loans and Interest Rate Trends
The data also highlighted an uptick in mortgage loans drawn down during September, which increased by 9.7% to HK$20.9 billion. In terms of interest rate trends, the proportion of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased from 94.4% in August to 92.6% in September. Conversely, the proportion of loans priced according to the best lending rates rose slightly from 1.3% to 1.5% over the same period.
Overall Mortgage Loan Value and Delinquency Rates
The outstanding value of mortgage loans at the end of September saw a minor increase of 0.2%, reaching HK$1,891.4 billion. Meanwhile, the mortgage delinquency ratio remained low at 0.13%, and the rescheduled loan ratio stayed nearly unchanged at 0%.
For further details, the full report can be accessed through the Hong Kong Monetary Authority.
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