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]

Group 1 - The core viewpoint indicates that the Hong Kong mortgage insurance market is experiencing fluctuations, with new mortgage insurance approvals increasing month-on-month but the total amount declining, reflecting a mixed sentiment in the property market [1] - In March, new mortgage insurance approvals rose by 2.5% month-on-month to 1,355 cases, marking the highest level in four months, although it remains below the 1,400 cases threshold for two consecutive quarters [1] - The total amount of new mortgage insurance fell by 5.9% month-on-month to HKD 6.6 billion, reaching a six-month low, indicating a cautious market environment [1] Group 2 - The number of new mortgage insurance applications decreased by 2.3% month-on-month to 515 cases, with the loan amount dropping by 4.7% to HKD 2.6 billion, both hitting new lows in four and two months respectively [1] - The first quarter saw a 5.4% increase in new mortgage insurance applications compared to the previous quarter, totaling 1,559 cases, but a year-on-year decline of 13.2% was noted [1] - The first quarter's new mortgage insurance approvals totaled 3,958 cases, a year-on-year decrease of 32.1%, with the total amount at HKD 20.4 billion, down 31.5% year-on-year [1] Group 3 - The recent government policy changes, including the relaxation of mortgage limits for properties under HKD 15 million, have led to a significant decrease in reliance on high loan-to-value mortgage insurance [2] - In February, the proportion of new mortgage insurance applications for residential mortgages fell to 14.4%, the lowest level since November 2019, indicating a successful impact of the relaxed mortgage policies [2] - The reduction in high loan-to-value mortgage insurance demand is seen as a positive development for the stability of the Hong Kong property market [2]