Hong Kong mortgage recovery holds in 2025 despite end-of-year wobble

Hong Kong’s mortgage market lost some momentum in November, official data showed, though activity over the first 11 months of 2025 still points to a full-year recovery from the previous year’s slump as borrowing costs eased, home prices stabilised and sentiment improved.

Mortgage applications – a gauge of buyer interest – fell 2.9 per cent from October to 8,019, according to the Hong Kong Monetary Authority (HKMA). Mortgage approvals, representing loans banks agreed to provide, declined 7 per cent month on month to HK$29.1 billion (US$3.74 billion).

Of the approved loans, HK$10.8 billion was earmarked for purchases of new homes from developers, down 12.6 per cent from October, while HK$15.6 billion financed purchases of existing homes, a more modest 2.3 per cent decline.

Loans used to refinance existing mortgages fell 9.6 per cent to HK$2.7 billion, suggesting fewer homeowners found it worthwhile to switch lenders or renegotiate terms as borrowing costs stabilised.

The amount of money drawn down – when borrowers receive funds and begin repaying their loans – slipped 2.3 per cent to HK$19.7 billion, indicating that some approved loans had yet to be completed.

The softer month-on-month figures highlighted an uneven recovery, with buyers and banks remaining cautious amid a prolonged property downturn.

Even so, cumulative data through November suggested 2025 was on track to deliver higher mortgage volumes than 2024 once December figures were included, reversing last year’s contraction when high interest rates and falling home prices weighed heavily on demand.