Market Watch: Hong Kong's mortgage for new properties in June increased nearly 1.8 times, reaching a 27-month high. Mortgage for existing properties also increased by nearly 4%

According to the latest data from the Mortgage Referral Research Department and the Hong Kong Land Registry obtained by Wisdom Finance APP, the number of new building mortgages in June was 4943, an increase of 1372 cases (38.4%) from 3571 cases in May, reaching a new high in 8 months; the number of pre-sale building mortgages was 804, an increase of 515 cases (178.2%) from 289 cases in May, rising for 3 consecutive months and reaching a new high in 27 months. Compared to the same period last year, the number of new building mortgages in June decreased by 3452 cases (41.1%) to 8395 cases; while the number of pre-sale building mortgages increased by 691 cases (611.5%) to 113 cases compared to the same period last year.

In the first half of the year, the number of new building mortgages recorded 24,530 cases, a decrease of 15,910 cases (39.3%) from 40,440 cases in the same period last year, hitting a record low for the first half of the year since 2001; the number of pre-sale building mortgages was 1653, an increase of 984 cases or 147.1% from 669 cases in the same period last year.

Cao Deming, Vice President of Mortgage Referral, stated that after the government relaxed the loan-to-value ratio for pre-sale building mortgages last year, the number of pre-sale building mortgages continued to rise. In June, the number increased nearly 1.8 times, mainly driven by buyers of new projects such as YOHO WEST, Tai Fung, BELGRAVIA PLACE, and BAKER CIRCLE going to sales galleries. The increase in new building mortgages by nearly 40% was driven by buyers of NOVO LAND going to sales galleries. After the government fully withdrew the cooling measures, new projects continued to dominate the market, with a significant increase in the ratio of immediate supply chosen by buyers. It is expected that the mortgage figures will continue to reflect this trend throughout the year.

In terms of market share of new building mortgages, Bank of China Hong Kong has ranked first for 11 consecutive months with a market share of 29.7%, HSBC ranked second with a market share of 27.6%; Industrial and Commercial Bank of China (Asia) moved up one level to rank third with a market share of 7%; Hang Seng Bank dropped one level to rank fourth with a market share of 6.6%; Citibank moved up one level to rank fifth with a market share of 4.8%.

Regarding the market share of pre-sale building mortgages, HSBC has maintained its top position for the third consecutive time with a market share of 45.3%; Bank of China Hong Kong remained stable in second place with a market share of 21.1%; Bank of East Asia moved up one level to rank third with a market share of 9.2%; Industrial and Commercial Bank of China (Asia) dropped one level to rank fourth with a market share of 8.5%; Hang Seng Bank remained stable in fifth place with a market share of 6.3%.

In June, the market share of the four major banks in new building mortgages increased from 63.4% in May to 66.2%, rebounding after two consecutive months of decline. Cao Deming stated that banks are adopting a conservative stance towards mortgage business and are gradually reducing mortgage rebates. Currently, only a small number of small and medium-sized banks are competing for mortgage business by offering more favorable mortgage plans to attract specific high-quality or large-scale customers, and some customers tend to choose banks that offer more incentives for mortgage underwriting