The number of mortgage inquiries also hit a three-year high.
The number of mortgage accounts in Hong Kong rose 7.6% YoY to 532,000 in Q2, according to market research firm Transunion, as home prices in the world’s most expensive property market continues to remain largely unaffordable for the city’s residents without bank financing.
The number of mortgage account originations also inched up 0.7% YoY to 26,500 in Q1 whilst the number of mortgage inquiries hit a three-year peak.
Nevertheless, Hong Kong consumers remain able to repay on time with account-level delinquency rates dropping by 1 basis point to 0.04%.
“The mortgage market’s strong performance is indicative of the overall consumer performance in Hong Kong. More credit is being extended, balances are rising and delinquencies are, for the most part, dropping. This is good news for both lenders and consumers,” Brendan le Grange, director of research and consulting for TransUnion Hong Kong said in a statement.
The volume of approved mortgage loans also picked up at a faster pace from 4.8% in June to 9% in July at $44.3b, according to data from the Hong Kong Monetary Authority.
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