The Hong Kong Monetary Authority’s survey found that residential mortgage loans in negative equity fell to an estimated 4,356 cases at end-June 2026, down 61.9% from 11,424 at end-March. Their aggregate value declined 64.4% to HKD 19.6 billion, while the unsecured portion dropped to HKD 0.9 billion from HKD 2.8 billion. The three-month delinquency ratio for these loans rose to 1.25% from 0.5% because the aggregate value of negative-equity mortgages declined faster than the value of delinquent loans in that category. Most cases involved bank staff housing loans or mortgages under the mortgage insurance programme, which generally have higher loan-to-value ratios. The estimates cover known negative-equity first mortgages and exclude second mortgages under co-financing schemes; surveyed institutions represent about 99% of the industry’s mortgage portfolios.
Hong Kong Monetary Authority2026-07-31
Hong Kong Monetary Authority reports 61.9% fall in negative-equity mortgage cases to 4,356
The Hong Kong Monetary Authority estimated that negative-equity residential mortgage cases fell 61.9% to 4,356 at end-June 2026, with their value down 64.4% to HKD 19.6 billion. The three-month delinquency ratio nevertheless rose to 1.25% as the overall value of negative-equity loans declined faster than delinquent balances.