Hong Kong Mortgage Approvals Surge 25.8% in June 2026

The Hong Kong Monetary Authority (HKMA) reported a notable 25.8% increase in residential mortgage loans approved for June 2026, reaching HK$50.6 billion. This marks a continuation of the positive momentum seen earlier in the year as mortgage volumes rebound from their 2025 lows.

Breaking down the figures, loans for primary market transactions surged 32.3% month-on-month to HK$15.5 billion, while secondary market loans climbed 21.6% to HK$28.9 billion. Refinancing activity also posted strong growth, up 30.6% to HK$6.2 billion. Meanwhile, loans drawn down rose 17.6% to HK$27.7 billion. The total number of mortgage applications increased by 12.5% to 12,117 during the month.

June’s data reflects a broader stabilization in Hong Kong’s property market, which has struggled over the past few years. Residential property prices remain approximately 26% below their September 2021 peak, as of September 2025, but improving sentiment and increased transaction volumes have marked 2026 as a recovery year. Mortgage volumes have steadily climbed since February, when approvals hit a low of HK$29 billion before rebounding in March (+38.6% to HK$40.1 billion).

On the pricing side, the ratio of new mortgage loans priced with reference to HIBOR (Hong Kong Interbank Offered Rate) fell to 70% in June from 73.8% in May, while loans tied to best lending rates rose slightly from 1.2% to 1.3%. Outstanding residential mortgage loans increased marginally by 0.4% month-on-month to HK$1,955 billion by the end of June, maintaining the upward trajectory observed earlier this year.

Crucially, the mortgage delinquency ratio remained at an ultra-low 0.11%, underscoring the resilience of Hong Kong’s borrowers despite years of market softness and interest rate volatility. The rescheduled loan ratio also held steady near 0%.

The June results follow a year of high volatility in the mortgage market, with activity influenced by external factors such as mainland Chinese buying interest. In April, mainland buyers acquired nearly 1,900 Hong Kong properties worth HK$18.9 billion, the highest volume in two years. This renewed demand, coupled with easing financial conditions, has supported the modest recovery in mortgage lending and transaction activity.

While residential property prices are still far from their historic highs, the combination of low delinquency rates, strong refinancing activity, and growing transaction volumes suggests that Hong Kong’s property market may be entering a period of sustained stabilization. Market participants will be closely watching the coming months for signs of further recovery, particularly as interest rate dynamics and mainland demand evolve.

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