Hong Kong Mortgage Market Sees Significant Uptick in October 2024
Alvin Lang Nov 29, 2024 01:44
The Hong Kong Monetary Authority reported a 46.5% increase in mortgage applications in October 2024, reflecting a robust housing market activity.
October Surge in Mortgage Applications
The Hong Kong Monetary Authority (HKMA) has released the results of its residential mortgage survey for October 2024. According to the report, mortgage applications saw a significant rise, increasing by 46.5% month-on-month to a total of 7,289 applications. This surge indicates a marked increase in housing market activity within the region.
Mortgage Loans Approval Rises
The total value of mortgage loans approved in October reached HK$19 billion, marking a 9.5% increase from September. Despite this overall rise, loans for primary market transactions saw a slight decrease of 2.4%, amounting to HK$5.4 billion. Conversely, secondary market transactions experienced a 14% increase, totaling HK$11.4 billion. Additionally, refinancing loans surged by 21.2%, reaching HK$2.2 billion.
Drawdown and Pricing Trends
While the approval of loans showed an upward trend, the actual drawdown of mortgage loans in October decreased by 26.9% compared to September, amounting to HK$11.2 billion. The data also highlighted a shift in loan pricing, with 89.2% of new mortgage loans being priced with reference to the Hong Kong Interbank Offered Rate (HIBOR), up from 88.6% in September. Loans priced according to the best lending rates decreased from 4.2% to 3.6% over the same period.
Stable Mortgage Market Conditions
The outstanding value of mortgage loans remained largely stable at HK$1,872.8 billion by the end of October. The mortgage delinquency ratio was notably low at 0.12%, with the rescheduled loan ratio nearly unchanged at 0%. These figures suggest a stable mortgage market with minimal financial distress among borrowers.
For further details, the full survey results can be accessed on the Hong Kong Monetary Authority website.
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