Hong Kong Mortgage Applications Drop 16.1% in May 2024, HKMA Reports

    The Hong Kong Monetary Authority (HKMA) has released the residential mortgage survey results for May 2024, revealing a significant decline in mortgage applications. According to the HKMA, the number of mortgage applications decreased by 16.1% month-on-month, totaling 8,077 applications.

    Increase in Mortgage Loans Approved

    Despite the drop in applications, mortgage loans approved in May saw an 8.8% increase compared to April, reaching HK$31.6 billion. Notably, mortgage loans for primary market transactions rose by 3.7% to HK$11.5 billion, while those for secondary market transactions climbed by 14.9% to HK$17.6 billion. However, mortgage loans for refinancing experienced a decline of 4.8%, amounting to HK$2.5 billion.

    Drawn Down Mortgage Loans Surge

    In May, the amount of mortgage loans drawn down surged by 27% compared to the previous month, reaching HK$16.5 billion. This indicates a robust uptake in the actual disbursement of approved loans.

    Shifts in Loan Pricing

    There was a slight shift in the pricing of new mortgage loans. The ratio of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased marginally from 93% in April to 92% in May. Conversely, the ratio of new mortgage loans priced with reference to best lending rates increased from 2.2% in April to 3.5% in May.

    Outstanding Mortgage Loans and Delinquency Ratios

    The outstanding value of mortgage loans saw a minor month-on-month increase of 0.2%, amounting to HK$1,856.1 billion at the end of May. Both the mortgage delinquency ratio and the rescheduled loan ratio remained stable, with the former at 0.09% and the latter near 0%.

    For more detailed information, the full report can be accessed through the official HKMA website here.

    Image source: Shutterstock

    News credit

    - Advertisement -

    Latest stories

    You might also like...