HKMA: Hong Kong mortgage applications fell 10.5% in September

News

Hong Kong mortgage applications, approvals and drawdowns declined in September, while outstanding mortgage loans edged up and delinquency stayed low.

The Hong Kong Monetary Authority said residential mortgage activity weakened in September 2026, with mortgage applications, approvals and drawdowns all falling from August, while the outstanding mortgage balance edged higher and delinquency remained low. The figures indicate softer monthly lending activity, even as the broader mortgage book continued to grow.

Evidence and context

In its residential mortgage survey for September 2026, published on 30 October 2026, the HKMA said the number of mortgage applications fell 10.5% month on month to 7,560. Mortgage loans approved in September declined 1.1% from August to HK$31.8 billion.

By segment, mortgage loans financing primary market transactions fell 6.8% to HK$8.5 billion, while loans for secondary market transactions decreased 5.7% to HK$14.4 billion. Mortgage loans for refinancing moved in the opposite direction, rising 14.6% to HK$8.9 billion.

Mortgage loans drawn down during September dropped 22.8% from August to HK$25.3 billion. The HKMA also said the share of new mortgage loans priced with reference to HIBOR decreased to 52.7% from 57% in August, while the share priced with reference to best lending rates slipped to 1.3% from 1.9%.

Despite the weaker monthly flow, the outstanding value of mortgage loans increased 0.2% month on month to HK$1,980.3 billion at the end of September. The mortgage delinquency ratio stood at 0.11%, and the rescheduled loan ratio was unchanged at nearly 0%.

The survey gives a snapshot of softer demand and lower transaction-related lending in September, but it does not by itself identify a cause. The next catalyst was not supplied in the source material.