Caroline Bishop
May 31, 2025 08:03
The Hong Kong Monetary Authority reported a 7.8% decline in mortgage applications for April 2025, with a notable increase in secondary market transactions.
Mortgage Application Decline
The Hong Kong Monetary Authority (HKMA) has released its residential mortgage survey results for April 2025, revealing a 7.8% decline in the number of mortgage applications compared to the previous month. This brings the total number of applications to 7,795 for the month.
Mortgage Loans Approved
Despite the drop in applications, the total value of mortgage loans approved in April saw a 2.4% increase from March, reaching HK$25.3 billion. The survey highlighted a decrease of 7.5% in loans for primary market transactions, amounting to HK$9.3 billion. Conversely, loans for secondary market transactions rose significantly by 17.6% to HK$13.7 billion. Loans for refinancing experienced a sharp decline of 23.5%, totaling HK$2.3 billion.
Drawn Down Loans and Pricing
Mortgage loans drawn down in April increased by 7.7% from the previous month, totaling HK$17.1 billion. The report also noted a shift in mortgage pricing, with the ratio of new loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) increasing from 90.4% in March to 91.8% in April. Conversely, the ratio of loans priced with reference to best lending rates decreased from 3.2% to 2.3% during the same period.
Outstanding Mortgage Value and Delinquency
According to the HKMA, the outstanding value of mortgage loans rose slightly by 0.2% month-on-month, reaching HK$1,881.9 billion by the end of April. The mortgage delinquency ratio remained low at 0.13%, while the rescheduled loan ratio held steady at nearly 0%.
For more details, the full report can be accessed on the Hong Kong Monetary Authority website.
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