Hong Kong Mortgage Market Shows Stability in October,Despite Slight Application Dip
Hong Kong’s residential mortgage market demonstrated continued stability in October 2025,with outstanding loans reaching HK$1,907.4 billion, according to survey results released today by the Hong Kong Monetary Authority (HKMA). While mortgage applications saw a minor decrease, overall loan approvals and delinquencies remained at healthy levels, signaling a resilient housing market.
The data provides a snapshot of the financial health of Hong Kong homeowners and potential buyers, impacting both the property sector – a key pillar of the city’s economy – and broader financial stability. The figures are closely watched by investors, developers, and policymakers as they navigate evolving economic conditions and potential interest rate adjustments. Understanding these trends is crucial for anticipating future market movements and ensuring sustainable growth in the housing sector.
A total of 8,255 mortgage applications were received in October, a 0.7 percent decrease from the previous month. Despite the slight dip in applications, HK$31.3 billion in mortgage loans were approved, remaining broadly consistent with September’s figures. Primary market financing accounted for HK$12.4 billion - a 2.1 percent decrease – while secondary market transactions saw a 3.4 percent increase to HK$16 billion. Refinancing activity decreased by 8.4 percent, totaling HK$3 billion.
Loans drawn down during the month amounted to HK$20.1 billion, a 3.5 percent decrease compared to September. The preference for interest rate referencing continued, with 91.9 percent of new mortgage loans priced with reference to HIBOR, down slightly from 92.6 percent in September. Loans linked to best lending rates also saw a minor decrease, from 1.5 percent to 1.3 percent.
Demonstrating sound lending practices, the mortgage delinquency ratio remained exceptionally low at 0.13 percent, and the rescheduled loan ratio remained at nearly 0 percent.
The survey results were issued by the HKMA on Friday, November 28, 2025, at HKT 16:31.
