Hong Kong Sees Rise in Mortgage Applications in May 2025
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Zach Anderson
Jun 30, 2025 07:55
The Hong Kong Monetary Authority reported a 5% enhance in mortgage functions in May 2025, with authorised loans rising to HK$26.6 billion.
Mortgage Applications Surge in May
The Hong Kong Monetary Authority (HKMA) has launched the outcomes of its residential mortgage survey for May 2025, indicating a notable uptick in mortgage exercise. According to the HKMA, the quantity of mortgage functions elevated by 5% month-on-month, reaching a complete of 8,187 functions. This rise in functions displays a rising curiosity in the housing market amid altering financial situations.
Mortgage Loans Approval and Market Dynamics
In May, the complete worth of mortgage loans authorised climbed by 5.3% in contrast to April, amounting to HK$26.6 billion. Notably, the sector skilled divergent traits within its market segments. While loans for major market transactions declined by 4.2% to HK$8.9 billion, secondary market transactions noticed a 7.1% enhance, totaling HK$14.6 billion. Additionally, mortgage loans for refinancing surged considerably by 33.7% to HK$3 billion.
Drawdowns and Pricing Trends
Despite the general rise in approvals, the mortgage loans drawn down during May decreased by 5.3% from April, totaling HK$16.2 billion. The HKMA famous a shift in pricing preferences among debtors. The proportion of new mortgage loans priced with reference to the Hong Kong Interbank Offered Rate (HIBOR) elevated from 91.8% in April to 93.4% in May. Conversely, the share of loans priced against finest lending charges decreased from 2.3% to 1.9% during the same interval.
Outstanding Mortgage Loans and Delinquency Rates
The excellent worth of mortgage loans noticed a marginal enhance of 0.1% month-on-month, reaching HK$1,884.2 billion by the finish of May. The mortgage delinquency ratio remained low at 0.13%, while the rescheduled mortgage ratio was steady at almost zero, indicating a comparatively wholesome mortgage compensation setting.
For more detailed data, refer to the official announcement by the Hong Kong Monetary Authority.
Image supply: Shutterstock
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