On Wed, 30 Sep, HKMA announced August 2026 residential mortgage survey results showing a month-on-month decrease in applications by 8.3% to 8,446 and approved loans down 28.2% to HK$32.2 billion, while drawn-down loans rose 11.6% to HK$32.8 billion.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Announcement of Residential Mortgage Survey Results for August 2026
On Wed, 30 Sep, the Hong Kong Monetary Authority ("HKMA") published its residential mortgage survey covering the period of August 2026.
Application Volume and Loan Approvals
During the reporting month, new mortgage applications registered a month-on-month decline of 8.3%, totalling 8,446 cases. Correspondingly, total approved mortgage loans fell by 28.2% from July to HK$32.2 billion. Within this aggregate figure, approvals for primary market transactions contracted by 31.8% to HK$9.1 billion, while those for secondary market transactions declined more sharply at 36.7%, reaching HK$15.3 billion. In contrast, refinancing facilities experienced a modest increase of 6.8%, amounting to HK$7.8 billion.
Drawn-Down Loans and Pricing Benchmarks
Mortgage loans actually drawn down in August rose by 11.6% over the preceding month to HK$32.8 billion. With respect to pricing references, the proportion of newly originated loans benchmarked against HIBOR eased from 61% in July to 57% in August, whereas those pegged to best lending rates edged upward from 1.3% to 1.9% over the same period.
Outstanding Portfolio and Credit Quality Indicators
As at end-August, the outstanding balance of mortgage loans grew by a marginal 0.6% on a monthly basis to HK$1,975.4 billion. The portfolio's credit quality remained sound: the delinquency ratio held steady at an exceptionally low level of 0.11%, and the rescheduled loan ratio was unchanged at approximately nil.
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