The number of mortgage applications also decreased by 26.5% MoM.
The transaction volume of approved mortgage loans slipped 2.8% MoM to $45.3b in August as the number of transactions fell 26.5% MoM to 11,133, according to data from The Hong Kong Monetary Authority (HKMA).
Mortgages in the primary and secondary markets also dipped 3.6% to $10.9b and 4.7% to $16b over the same period, respectively. Mortgage drawdown fell 10.2% MoM to $36.6b.
In addition, the ratio of new mortgage loans priced with reference to Hong Kong Interbank Offered Rate (HIBOR) increased from 88.5% in July to 89.1% in August, whilst the ratio of new mortgage loans priced with reference to best lending rates edged down 8.5% in August from 9% in July.
The outstanding value of mortgage loans rose 1.1% MoM to $1,403.2. The delinquency ratio remained flat at 0.02%, whilst the rescheduled loan ratio stayed at nearly 0%.