Chung Yuan Mortgage: Hong Kong recorded 28 cases of elderly mortgages in December last year, an increase of 16.7% compared to the previous month.

According to the data from the research department of Midland Mortgage and the Hong Kong Land Registry, there were 426 cases of reverse mortgages registered throughout the year in 2024, marking a consecutive increase for two years compared to the 346 cases in 2023, with a year-on-year increase of 23.1%. In December 2024, there were 28 cases of reverse mortgage registrations by Hong Kong banks, showing a monthly increase of 16.7%. All 28 cases in December were handled by BOC HONG KONG. Wong Mei Fung, the Managing Director of Midland Mortgage, pointed out that the amount of reverse mortgage annuity is calculated based on the valuation of the property at the time of application. Therefore, the fluctuation of property prices affects the amount of annuity received by homeowners. In recent years, as property prices have been declining, the number of reverse mortgage registrations has not reached the levels seen during the period of rising property prices like in 2017 (751 cases) and 2018 (621 cases). However, after dropping to 237 cases in 2022, the number of reverse mortgage registrations has been on the rise for two consecutive years. This is believed to be due to the narrowing decline in property prices and a gradual stabilization in property prices in 2024, allowing some potential applicants for reverse mortgages to proceed with their applications, leading to the increase in reverse mortgage registrations in 2024. Currently, there are 12 banks participating in providing reverse mortgages in Hong Kong. Data shows that BOC HONG KONG (02388) is the main provider of reverse mortgages in Hong Kong, with 419 cases registered in 2024, a year-on-year increase of 22.9%, and a market share of 98.4%. BOC HONG KONG has been the leading provider of reverse mortgages for 14 consecutive years. Two other banks have recorded fewer reverse mortgage registrations, namely Shanghai Commercial Bank, with 5 cases registered in 2024, an increase of 66.7% from the previous year, and BANK OF E ASIA (00023), with 2 cases registered in 2024, representing a 100% increase from the previous year. The market share ranking of these three banks for reverse mortgages remains the same as in 2023. According to statistics from HKMC Insurance Limited, there were 59 reverse mortgage applications in December 2024, a decrease of 40.4% from the previous month, and a decrease of 41.6% compared to December 2023, when there were 101 applications. In total, there were 1077 reverse mortgage applications recorded throughout the year in 2024, representing an increase of 33.8% from 805 applications in 2023, marking a consecutive increase for two years. The Reverse Mortgage Scheme was officially launched by Hong Kong Mortgage Corporation Securities Company in July 2011. According to the company's statistics, as of December 31, 2024, there have been a total of 7995 applications for reverse mortgages, with single applicants accounting for the majority at 65.6%, followed by dual applicants at 34.3%, and triple applicants at 0.1%. The average age of reverse mortgage applicants is around 68 years old, with an average property value of HK$5.7 million (ranging from HK$230,000 to HK$83 million), and an average monthly annuity of HK$16,600 (ranging from zero to HK$198,000), with an average property age of 32 years (ranging from 1 to 71 years). The majority of applicants choose to receive annuities for life, as it provides the greatest security without the need to worry about repayment issues, accounting for 53% of applicants. The next most popular option is the fixed-term annuity for 10 years, accounting for 21.3% of applicants, mainly due to the higher amount of annuity received over the 10-year period.