Core Insights - The number of new mortgage insurance applications in May 2025 increased slightly by 0.3% month-on-month to 612 cases, while the amount decreased by 14.2% to HKD 2.9 billion, indicating a significant drop in average mortgage amounts [1] - In the first five months of 2025, new mortgage insurance applications totaled 2,781, a decrease of 27.9% year-on-year, with a total amount of HKD 14.2 billion, down 28% from the previous year [2] - The relaxation of mortgage policies has led to a reduced reliance on mortgage insurance, with the percentage of new applications relative to total mortgages at 17.6% in May, up from 14.8% in April but significantly lower than over 30% before policy changes [3] Group 1 - The average mortgage amount for new applications fell from HKD 5.54 million in April to HKD 4.73 million in May [1] - The slight increase in the number of new applications in May is attributed to a government tax exemption for properties below HKD 4 million, which boosted transactions in lower-priced properties [1] - The total number of new mortgage insurance applications in May was 1,462, a slight decrease of 1.9% month-on-month, but the amount increased by 0.8% to HKD 7.2 billion, marking a five-month high [2] Group 2 - Factors contributing to the recovery of the property market in May include a drop in HIBOR rates, easing of the US-China trade conflict, and strong sales of new properties [2] - The total number of new mortgage insurance applications issued was 6,910, down 35.1% year-on-year, with an amount of HKD 34.7 billion, a decrease of 37% from the previous year [2] - The relaxation of mortgage policies has effectively lowered the entry barrier for homebuyers, allowing them to secure loans with a lower down payment, thus stimulating activity in the lower-priced property market [3]