Hong Kong Sees Rise in Mortgage Applications in May 2025
Zach Anderson Jun 30, 2025 07:55
The Hong Kong Monetary Authority reported a 5% increase in mortgage applications in May 2025, with approved loans rising to HK$26.6 billion.
Mortgage Applications Surge in May
The Hong Kong Monetary Authority (HKMA) has released the results of its residential mortgage survey for May 2025, indicating a notable uptick in mortgage activity. According to the HKMA, the number of mortgage applications increased by 5% month-on-month, reaching a total of 8,187 applications. This rise in applications reflects a growing interest in the housing market amid changing economic conditions.Mortgage Loans Approval and Market Dynamics
In May, the total value of mortgage loans approved climbed by 5.3% compared to April, amounting to HK$26.6 billion. Notably, the sector experienced divergent trends within its market segments. While loans for primary market transactions declined by 4.2% to HK$8.9 billion, secondary market transactions saw a 7.1% increase, totaling HK$14.6 billion. Additionally, mortgage loans for refinancing surged significantly by 33.7% to HK$3 billion.Drawdowns and Pricing Trends
Despite the overall rise in approvals, the mortgage loans drawn down during May decreased by 5.3% from April, totaling HK$16.2 billion. The HKMA noted a shift in pricing preferences among borrowers. The proportion of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) increased from 91.8% in April to 93.4% in May. Conversely, the share of loans priced against best lending rates decreased from 2.3% to 1.9% during the same period.Outstanding Mortgage Loans and Delinquency Rates
The outstanding value of mortgage loans saw a marginal increase of 0.1% month-on-month, reaching HK$1,884.2 billion by the end of May. The mortgage delinquency ratio remained low at 0.13%, while the rescheduled loan ratio was stable at nearly zero, indicating a relatively healthy loan repayment environment.For more detailed information, refer to the official announcement by the Hong Kong Monetary Authority.
Image source: Shutterstock.jpg)
