Hong Kong Monetary Authority data released on 30 September 2026 reveals a sharp contraction in residential mortgage activity during August, with approved loans falling to HK$32.2 billion, a 28.2% month-on-month decline. Mortgage applications also weakened, dropping 8.3% to 8,446, signaling cooling demand in the city’s property market despite resilient loan disbursements and historically low default rates.
- Mortgage Applications (August): 8,446 (down 8.3% MoM)
- Approved Mortgage Loans: HK$32.2 billion (down 28.2% MoM)
- Primary Market Loans: HK$9.1 billion (down 31.8%)
- Secondary Market Loans: HK$15.3 billion (down 36.7%)
- Refinancing Loans: HK$7.8 billion (up 6.8%)
- Outstanding Mortgage Loans: HK$1,975.4 billion (up 0.6% MoM)
- Delinquency Ratio: 0.11%
Both primary and secondary market mortgage origination contracted significantly in August. Primary market loans dropped 31.8% to HK$9.1 billion, while secondary market loans fell 36.7% to HK$15.3 billion. Refinancing activity, however, bucked the trend with a 6.8% increase to HK$7.8 billion, suggesting homeowners continued to optimize existing debt despite cautious new lending.
Mortgage loan drawdowns increased 11.6% to HK$32.8 billion in August, outpacing approved originations. The HKMA data also showed a shift in pricing behavior, with the ratio of new loans priced against HIBOR declining to 57% from 61% in July. Conversely, mortgages indexed to best lending rates rose to 1.9% from 1.3%, reflecting lenders’ strategic adjustments amid market conditions.
Credit quality remained robust, with the mortgage delinquency ratio holding steady at a low 0.11% and the rescheduled loan ratio unchanged near zero. The outstanding value of all residential mortgages grew modestly by 0.6% to HK$1,975.4 billion at the end of August. The Hong Kong Monetary Authority is the city’s central banking and monetary policy authority.
