In a recent survey conducted by the Hong Kong Monetary Authority (HKMA), November 2024 has emerged as a pivotal month for the city’s mortgage market, showcasing a remarkable upswing in activity. With a 9.7% increase in mortgage applications compared to October, the total reached an impressive 7,995. This signals heightened interest among potential homebuyers as market conditions evolve.

Surge in Mortgage Loans Approved

The landscape looks even more promising as the total value of approved mortgage loans skyrocketed to HK$24.2 billion, reflecting a stunning 27.7% jump from the previous month. This surge can be attributed to both primary and secondary market transactions, with mortgage loans allocated for primary market dealings shooting up by an astounding 46.2% to HK$7.9 billion. Secondary market transactions also saw robust growth, rising by 20.3% to HK$13.7 billion. Additionally, there was a significant increase of 20.1% in loans for refinancing, totaling HK$2.6 billion.

A Closer Look at Loan Drawdowns and Rate Trends

While the approval rates are soaring, it's noteworthy that the drawn-down mortgage loans in November dipped by 5.2%, amounting to HK$10.6 billion. This discrepancy raises questions about market dynamics and the factors influencing buyer behavior. Moreover, a discernible trend has emerged in loan pricing: the percentage of new mortgage loans tied to the Hong Kong Interbank Offered Rate (HIBOR) rose sharply from 89.2% in October to 92.2% in November. On the flip side, loans benchmarked against best lending rates fell significantly from 3.6% to just 2.6%.

Sustained Confidence Amidst Economic Uncertainties

The total outstanding value of mortgage loans slightly retracted, down by 0.1% to end November at HK$1,871 billion. However, the mortgage delinquency ratio remained impressively low at 0.11%, coupled with a stable rescheduled loan ratio close to 0%. These figures reflect sustained confidence in the resilience of Hong Kong's real estate market despite external economic pressures.

In conclusion, the HKMA's recent findings suggest that while there is a minor decline in drawn-down loans, the overall performance of Hong Kong’s mortgage market remains robust. Investors and homebuyers alike appear to be undeterred, showing a commitment to navigate the evolving landscape of real estate opportunities in the city.

Stay tuned for more updates on Hong Kong's mortgage sector as it continues to adapt to changing economic conditions!