Hong Kong Mortgage Applications Drop by 17.2% in June 2024, HKMA Reports
Peter Zhang Jul 31, 2024 11:58
The Hong Kong Monetary Authority (HKMA) reports a 17.2% decline in mortgage applications for June 2024, with significant decreases in loan approvals.
The Hong Kong Monetary Authority (HKMA) has released its residential mortgage survey results for June 2024, revealing a significant decrease in mortgage applications and approvals. According to the report, the number of mortgage applications fell by 17.2% month-on-month to 6,690.
Decline in Mortgage Loan Approvals
Mortgage loans approved in June dropped by 22.5% compared to May, totaling HK$24.5 billion. Among these, loans for primary market transactions decreased by 25.6% to HK$8.6 billion, while those for secondary market transactions declined by 21.3% to HK$13.8 billion. Loans for refinancing also saw a reduction of 16.6%, amounting to HK$2.1 billion.
Increase in Mortgage Loans Drawn Down
Despite the decline in applications and approvals, the amount of mortgage loans drawn down in June surged by 46.9% compared to the previous month, reaching HK$24.3 billion.
Changes in Loan Pricing
The survey also highlighted changes in the pricing of new mortgage loans. The ratio of new loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased from 92% in May to 90.4% in June. Conversely, the ratio of new loans priced with reference to best lending rates increased from 3.5% to 4.3% over the same period.
Outstanding Mortgage Loans and Delinquency Ratio
At the end of June, the outstanding value of mortgage loans saw a slight month-on-month increase of 0.6%, totaling HK$1,866.8 billion. The mortgage delinquency ratio experienced a minor uptick to 0.1%, while the rescheduled loan ratio remained nearly unchanged at 0%.
For more detailed information, refer to the official report by the Hong Kong Monetary Authority.
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