Hong Kong mortgages drop to HK$36.5b in April after Q4 2025 recovery

Mortgage competition was said to have intensified in the Q1 period.

Hong Kong saw its mortgage loan approvals decline by 9% in April to HK$36.5b in April compared to March, according to survey results of the Hong Kong Monetary Authority (HKMA).

This comes in tandem with mortgage applications in April declining by 7.5% month-on-month to 9,541. Mortgage loans drawn down during April also decreased by 16.1% compared with March to HK$22.6b.

The slowdown comes after showing signs of recovery in Q4 2025, when active mortgage accounts rose by 3.6% year-on-year, TransUnion had said in a report last February 2026.

“Mortgage activity is recovering in a healthy and disciplined way and is likely to see further activity based on improved affordability as a result of the Hong Kong Monetary Authority’s current lower base rate environment,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion, wrote in a report on February 2026.

Mortgage competition has reportedly intensified, with lenders even offering aggressive fixed-rate products to attract clients.

“With deposit rates near zero, banks will focus increasingly on fee-based revenue to offset low-yield savings,” said Alicia García-Herrero, chief economist for the Asia-Pacific at Natixis SA, said in an earlier interview by Hong Kong Business.