Hong Kong Mortgage Market Trends: November 2024 Update
The Hong Kong Monetary Authority (HKMA) has recently released its residential mortgage survey results for November 2024, shedding light on the evolving landscape of the city’s mortgage market. According to the report, there has been a notable increase in mortgage applications and approved loans during this period.
Rising Mortgage Applications and Loan Approvals
In November 2024, the number of mortgage applications surged by 9.7% compared to the previous month, totaling 7,995 applications. This significant uptick in applications indicates a growing interest in property ownership and investment among residents of Hong Kong. Moreover, the total value of approved mortgage loans saw a substantial increase of 27.7% from October, reaching HK$24.2 billion. This surge in loan approvals highlights the continued demand for residential properties in the city.
Growth in Primary and Secondary Market Transactions
The rise in approved mortgage loans for November was driven by substantial growth in both primary and secondary market transactions. Loans for primary market transactions saw an impressive increase of 46.2%, amounting to HK$7.9 billion. Similarly, loans for secondary market transactions rose by 20.3% to HK$13.7 billion. Additionally, loans for refinancing experienced a growth of 20.1%, totaling HK$2.6 billion. These figures indicate a healthy level of activity in the real estate market, with buyers and investors seizing opportunities across various segments.
Loan Drawdowns and Pricing Trends
Despite the surge in loan approvals, mortgage loans drawn down in November decreased by 5.2% compared to October, totaling HK$10.6 billion. A noteworthy trend observed during this period was the pricing of new mortgage loans. The proportion of loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) increased from 89.2% in October to 92.2% in November. Conversely, loans priced with reference to best lending rates saw a decline from 3.6% to 2.6% over the same period. These fluctuations in pricing reflect the dynamic nature of the mortgage market in response to changing economic conditions.
Outstanding Loans and Delinquency Rates
The total outstanding value of mortgage loans experienced a slight decline of 0.1% in November, ending the month at HK$1,871 billion. Despite this minor decrease, the mortgage delinquency ratio remained low at 0.11%, indicating a healthy repayment behavior among borrowers. Similarly, the rescheduled loan ratio stayed nearly unchanged at 0%, reflecting the overall stability of the mortgage market in Hong Kong.
In conclusion, the latest report by the HKMA paints a positive picture of the city’s mortgage market, with robust growth in loan approvals and steady performance indicators. The data suggests continued confidence in the real estate sector and a favorable outlook for property transactions in the coming months. As Hong Kong residents navigate the evolving landscape of mortgage financing, opportunities abound for both homebuyers and investors looking to capitalize on the city’s dynamic property market.