Hong Kong’s Mortgage Market Experiences Growth in November 2024

Hong Kong Mortgage Market Sees a Significant Uptick in November 2024

The mortgage landscape in Hong Kong experienced notable growth in November 2024, driven by increases in both application volumes and approved loans. According to the latest residential mortgage survey results, mortgage activity in the city demonstrated resilience, reflecting continued confidence in the real estate market despite a marginal decrease in loan drawdowns.

Rise in Mortgage Applications

The number of mortgage applications in November 2024 increased by 9.7% compared to the previous month, reaching a total of 7,995 applications. This surge highlights a strong demand for residential property financing amid evolving market conditions.

Record Growth in Approved Mortgage Loans

The total value of approved mortgage loans saw an impressive jump of 27.7%, amounting to HK$24.2 billion. This growth was attributed to substantial increases in loans approved for both primary and secondary market transactions:

• Primary Market Loans: Mortgage loans for new property purchases surged by a remarkable 46.2%, reaching HK$7.9 billion.
• Secondary Market Loans: Loans for property transactions in the secondary market grew by 20.3%, totaling HK$13.7 billion.
• Refinancing: Loans for refinancing saw a significant increase of 20.1%, totaling HK$2.6 billion.

This sharp rise in approvals underscores the growing confidence of buyers and homeowners in leveraging mortgage financing.

Loan Drawdowns and Mortgage Pricing Trends

Although November saw a rise in loan approvals, the total value of mortgage loans drawn down decreased by 5.2% from October, settling at HK$10.6 billion. This dip might reflect delays in property transactions or disbursement timelines.

In terms of mortgage pricing trends, there was an increasing preference for loans linked to the Hong Kong Interbank Offered Rate (HIBOR). The proportion of such loans rose from 89.2% in October to 92.2% in November. Meanwhile, loans priced based on best lending rates declined, dropping from 3.6% to 2.6%.

Outstanding Loans and Delinquency Ratios

The total outstanding value of residential mortgage loans saw a slight decline of 0.1%, ending November at HK$1,871 billion. Despite the minor reduction, delinquency levels remained stable and exceptionally low, with the mortgage delinquency ratio holding at 0.11% and the rescheduled loan ratio staying nearly unchanged at 0%.

Key Takeaways

Hong Kong’s mortgage market displayed robust growth in November 2024, particularly in terms of approved loans for primary and secondary markets. The strong surge in application and approval values reflects continued confidence in the city’s property market, even amidst global economic uncertainties. Buyers’ growing reliance on HIBOR-based mortgage pricing further highlights market trends and adaptability.

The latest figures confirm Hong Kong’s dynamic housing market and the resilience of its mortgage financing ecosystem, setting a promising tone as the city closes out 2024.