GLOPRAGlobal Property Radar

Hong Kong mortgage drawdowns fall 22.8% in September 2026

Hong Kong mortgage drawdowns fell to HK$25.3 billion in September 2026, -22.8% on August, while negative-equity cases dropped to 3,819 from 4,356.

The facts

  • Mortgage loans drawn down in September reached HK$25.3 billion, a change of -22.8% on August, the Hong Kong Monetary Authority reported on 30 October 2026.
  • Approvals totalled HK$31.8 billion, down 1.1%. Secondary-market purchases took HK$14.4 billion (-5.7%), refinancing HK$8.9 billion (+14.6%) and primary-market purchases HK$8.5 billion (-6.8%).
  • Applications numbered 7,560, down 10.5% from August.
  • HIBOR-linked pricing covered 52.7% of new mortgage loans, against 57% in August, while loans priced off best lending rates fell to 1.3% from 1.9%.
  • Outstanding mortgage debt stood at HK$1,980.3 billion at end-September, up 0.2% in the month, with a delinquency ratio of 0.11%.
  • Negative-equity mortgages numbered 3,819 cases worth HK$17.3 billion at end-September, against 4,356 cases and HK$19.6 billion at end-June, and their three-month delinquency ratio rose to 1.34% from 1.25%.

What it means for your money

  • Mortgage money actually drawn fell by a fifth in one month. Buyers entering now face thinner competition from borrowers.
  • HIBOR-linked pricing now covers 52.7% of new loans rather than 57%, so a larger share of new borrowers pays a bank-set rate that moves on the lender's timetable instead of the interbank market's.
  • Glopra data puts Hong Kong at 17,514.6 USD per square metre with monthly rent of 53.27 USD per square metre and prices 10.98% higher than a year ago, so the drop in drawdowns marks buyers stepping back from a market that has not repriced.
  • Refinancing rose 14.6% and negative-equity cases fell to 3,819, widening the room for owners already in Hong Kong to reprice a loan, though the delinquency ratio on those loans climbed to 1.34%.

What to watch

  • The October Residential Mortgage Survey, due at the end of November, shows whether the drawdown drop lasted beyond one month.
  • The Rating and Valuation Department's September price and rental indices, still unpublished, set the denominator behind the negative-equity count.
  • The survey counts loan flows, not transactions, so it cannot be read as a sales figure.

Sources: Hong Kong Monetary Authority https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/10/20261030-5/; Hong Kong Monetary Authority https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/10/20261030-6/

Market data: Hong Kong