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Hong Kong mortgage loans surge to 9-month high as new homebuyers seek more financing

Financial institutions approved mortgage loan applications worth US$3.3 billion in February

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A man passes a property agency in Mong Kok. Photo: Elson Li
Cheryl Arcibal
Approved mortgage loans in Hong Kong rose to a nine-month high in February as buyers of new flats sought additional financing, suggesting an improvement in demand as developers continued to launch new projects at attractive prices, analysts said.

Financial institutions approved mortgage loan applications worth HK$26.1 billion (US$3.3 billion), the highest since HK$31.6 billion in May, according to data released by the Hong Kong Monetary Authority (HKMA) on Monday. February was also the fourth straight month where loans topped HK$20 billion.

Financing for new homes rose 21.6 per cent to HK$12.1 billion, the HKMA said, while loans for lived-in homes decreased by about 10 per cent to HK$11 billion.

Following a stamp-duty reduction to HK$100 for homes worth up to HK$4 million, the property market has been showing some stabilisation and “will drive the residential mortgage figures in the second quarter”, said Eric Tso Tak-ming, chief vice-president of mortgage broker mReferral.

“Banks have also adopted a more positive stance toward property mortgages,” Tso said. “Some major banks launched limited-time, low-interest fixed mortgage plans, along with cash rebates for mortgage applications.”

On Saturday, the first sales day for the second phase of Le Mont in Tai Po, 74 out of 128 flats found buyers, according to developer Vanke Holdings (Hong Kong).
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