Joerg Hiller
Sep 30, 2025 09:46
The Hong Kong Monetary Authority reports a 6.7% decrease in mortgage applications in August 2025, with notable changes in loan approval and drawdown patterns.
The Hong Kong Monetary Authority (HKMA) has released its residential mortgage survey results for August 2025, revealing a significant decline in mortgage applications. According to the HKMA, the number of mortgage applications fell by 6.7% from July, totaling 8,405 applications.
Mortgage Loan Approvals and Drawdowns
In August, mortgage loans approved decreased by 6.3% compared to the previous month, reaching HK$28.7 billion. The breakdown of these figures shows a 0.7% decrease in loans for primary market transactions, amounting to HK$10.7 billion, while loans for secondary market transactions experienced a more substantial drop of 11.9% to HK$14.6 billion. On the other hand, mortgage loans for refinancing saw an increase of 4.1%, totaling HK$3.3 billion.
Despite the overall decline in approvals, the amount of mortgage loans drawn down in August rose by 4.5% compared to July, reaching HK$19 billion.
Interest Rate Trends
The survey also highlighted changes in the interest rate preferences for new mortgage loans. The proportion of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased from 95.7% in July to 94.4% in August. Conversely, loans priced with reference to the best lending rates saw a slight increase from 1.2% to 1.3% over the same period.
Outstanding Mortgage Loans and Delinquency
By the end of August, the outstanding value of mortgage loans recorded a marginal increase of 0.1%, amounting to HK$1,888.3 billion. The mortgage delinquency ratio remained low at 0.13%, with the rescheduled loan ratio staying nearly unchanged at 0%.
For more detailed information, the full report can be accessed on the HKMA website.
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Source: https://blockchain.news/news/hong-kong-mortgage-market-august-2025
