The Hong Kong Monetary Authority published results of its survey of residential mortgage loans in negative equity at end-December 2025, showing a decline in both the number and value of such loans since end-September 2025. The estimated number of cases fell to 21,304 from 31,449, while the aggregate value dropped to HKD 105.4 billion from HKD 156.8 billion. Most cases related to bank staff housing loans or residential mortgage loans under the mortgage insurance programme, which generally have higher loan-to-value ratios. The unsecured portion decreased to HKD 6.2 billion from HKD 10.9 billion, and the three-month delinquency ratio remained low at 0.31% compared with 0.24% previously. The figures cover first-mortgage residential loans from authorized institutions that are known by the reporting institution to be in negative equity and exclude co-financing schemes where negative equity would arise when second mortgages are taken into account, as institutions do not maintain records of those second-mortgage balances; surveyed portfolios represent about 99% of the industry total and results were extrapolated to the banking sector.

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