Hong Kong Mortgage Applications Decline in April 2025 Amid Shifting Market Dynamics

Hong Kong’s property market showed mixed signals in April 2025 as mortgage applications fell 7.8% month-over-month to 7,795, according to the Hong Kong Monetary Authority. The decline contrasts with a 2.4% increase in total approved mortgage value to HK$25.3 billion, revealing diverging trends across market segments.

Secondary market transactions surged 17.6% to HK$13.7 billion while primary market loans dropped 7.5%. Refinancing activity plummeted 23.5%, suggesting homeowners are holding existing terms despite rate fluctuations. Drawn-down loans ROSE 7.7% to HK$17.1 billion, indicating continued liquidity deployment.

Pricing mechanisms shifted toward HIBOR-linked products, comprising 91.8% of new loans versus 90.4% in March. Best lending rate references declined to 2.3% from 3.2%, reflecting borrowers’ preference for floating-rate products amid uncertain rate environments.