Hong Kong mortgage market shows growth in January 2024

128

29th February 2024 – (Hong Kong) The Hong Kong Monetary Authority has released the findings of the residential mortgage survey for January 2024, revealing positive trends in the market. According to the survey, the number of mortgage applications saw a significant month-on-month increase of 36.8 percent, reaching a total of 6,523 applications.

In terms of approved mortgage loans, January 2024 witnessed a rise of 15.1 percent compared to December 2023, with a total value of HK$21.1 billion. It is noteworthy that mortgage loans supporting primary market transactions experienced a notable increase of 20.9 per cent, amounting to HK$6.3 billion, while loans for secondary market transactions rose by 26.6 percent to HK$11.3 billion. However, mortgage loans for refinancing experienced a decline of 15.9 per cent, totalling HK$3.6 billion.

Mortgage loans drawn down during January 2024 showed a significant increase of 29.8 percent compared to the previous month, reaching HK$16.1 billion.

The survey also revealed changes in the pricing of new mortgage loans. The ratio of loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) decreased slightly from 94.6 per cent in December 2023 to 93.4 per cent in January 2024. Additionally, loans priced with reference to best lending rates decreased from 1.7 per cent to 1.6 per cent during the same period.

Despite the growth in mortgage activity, the outstanding value of mortgage loans remained relatively stable, standing at HK$1,854.2 billion by the end of January 2024.

The survey also highlighted the mortgage delinquency ratio, which remained unchanged at a low rate of 0.08 percent. Similarly, the rescheduled loan ratio remained nearly unchanged at close to 0 percent, indicating a healthy and stable market.