Olympia Awards: Preliminary signs of recovery in the mortgage market reflect gradual recovery in the Hong Kong property market and improved consumer confidence.

The fourth quarter of 2025 Credit Industry Analysis Report released by Huanlian showed that the mortgage market in Hong Kong showed initial signs of recovery in the fourth quarter of 2025, benefiting from the low base interest rate maintained by the Hong Kong Monetary Authority. The total number of active mortgage loan accounts increased by 3.6% year-on-year, reflecting a gradual warming of the Hong Kong property market and improved consumer confidence. The number of new mortgage loans in the third quarter of 2025 surged by 44.1% compared to the same period last year, indicating a rebound in new loan business. Data from Centaline Property also shows a recovery in the mortgage market, with the number of new first-hand residential registrations in the third quarter of 2025 more than doubling from the same period last year, while the number of second-hand residential registrations also increased by 55% year-on-year. The report pointed out that despite the overall growth trend in the mortgage market, financial institutions remain relatively cautious in their approval process. Among all mortgage loan accounts, 67.2% belong to low-risk consumers with super prime risk levels, a slight increase from the previous year, while the proportion of higher risk consumers remains low. In terms of age groups, consumers from Generation Z and Baby Boomers recorded the largest increase in new mortgage loan numbers, with a year-on-year growth of 1.6% and 5.7% respectively, while Millennials and Generation X saw a decline of 5.9% and 1.4% respectively. Sun Weihan, Chief Consultant of Research and Consulting in the Asia-Pacific region at Huanlian, stated that the mortgage loan market is experiencing a healthy and orderly recovery. The low interest rate environment maintained by the Hong Kong Monetary Authority is easing the burden of housing affordability and is expected to further promote mortgage market activities. Understanding the overall repayment performance, leverage levels, and changes in borrowing behavior of consumers will help financial institutions more accurately predict the demand for new mortgage loans or refinancing of existing credit, thereby capturing business opportunities.