HONG KONG – Hong Kong mortgage loan approvals decreased in August, falling 6.3 percent from July to HK$28.7 billion, according to data released Tuesday by the Hong Kong Monetary Authority.
The number of mortgage applications also declined, dropping 6.7 percent month-over-month to 8,405.
Breaking down the approvals, primary market financing decreased slightly by 0.7 percent to HK$10.7 billion,while secondary market financing experienced a more notable decline of 11.9 percent to HK$14.6 billion.
Despite the decrease in approvals, refinancing activity increased, with mortgage loans for refinancing rising 4.1 percent to HK$3.3 billion. Loans drawn down in August totaled HK$19 billion, a 4.5 percent increase compared to July.
The proportion of new mortgages linked to the Hong Kong Inter-bank Offered Rate (HIBOR) edged down from 95.7 percent in July to 94.4 percent in August. Conversely, loans referencing best lending rates increased from 1.2 percent to 1.3 percent over the same period.
As of the end of August, the total outstanding value of mortgage loans stood at HK$1,888.3 billion, representing a 0.1 percent month-on-month increase. The mortgage delinquency ratio remained low at 0.13 percent,with the rescheduled loan ratio holding steady at nearly 0 percent.
