Zhongyuan: Hong Kong's new mortgage approvals in August fell by 17% month-on-month, hitting a nearly 5-year low
Wang Meifeng, Managing Director of Central Mortgage, pointed out that the new mortgage amount in Hong Kong in August decreased by 17% compared to the previous month, hitting a nearly 5-year low, with the number of new mortgages falling by 14.9% to 1512 cases. Due to the decline in property transactions in the Hong Kong market, the number of new mortgage drawdowns has decreased for two consecutive months. In August, the number of new mortgage drawdowns dropped to 695 cases, with the amount decreasing to HKD 3.7 billion. Despite the sluggish market, it is expected that the mortgage figures will stabilize by the end of the year, as banks return to normal lending practices and market confidence is boosted by expectations of a rate cut by the Federal Reserve
According to the latest information from Zhitong Finance and Economics APP, Wang Meifeng, the Managing Director of Zhongyuan Mortgage, pointed out that the trading volume of the Hong Kong property market has gradually declined since May, affecting the number of mortgage insurance. According to the latest statistics from Hong Kong Mortgage Securities Limited, in August 2024, the number of new mortgage approvals decreased by 14.9% from the previous month to 1512 cases, hitting a new low in the past 11 months. The amount also decreased by 17.2% from the previous month to HKD 7.8 billion, reaching a new low in nearly 5 years. At the same time, the number of new mortgage drawdowns has declined for two consecutive months, with a further 18.9% decrease in August to 695 cases compared to the previous month, and the amount decreased by 18.8% to HKD 3.7 billion.
Wang Meifeng pointed out that the trading volume of the Hong Kong property market softened in the second quarter, affecting the property transactions and mortgage approval numbers in July and August. However, recently, the attitude of banks towards property mortgages has significantly improved. Coupled with the almost certain interest rate cut in the United States in September, the Hong Kong dollar interest rate is expected to continue to decline in the fourth quarter, reducing the cost pressure on bank and corporate funds. This will further enhance the enthusiasm of banks for property mortgages, which is expected to increase market confidence. Buyers who take advantage of the low prices are expected to increase market sentiment, and mortgage approval numbers are expected to stabilize before the end of the year.
In the first eight months of 2024, there were 7,100 new mortgage drawdowns, a significant decrease of 42.6% year-on-year, with the amount decreasing by 47% to HKD 36.7 billion. During the same period, there were a total of 15,450 new mortgage approvals, a decrease of 45.3% year-on-year, with the amount also decreasing by 48.9% to HKD 80.6 billion, mainly affected by the quiet market conditions from the fourth quarter of last year to the present before the cooling measures were withdrawn