The Hong Kong Monetary Authority published the results of its end-September 2025 survey on residential mortgage loans (RMLs) in negative equity, estimating 31,449 cases across the banking sector, down from 37,806 at end-June 2025. The three-month delinquency ratio for negative equity RMLs remained low at 0.24%, compared with 0.21% at end-June. The aggregate value of negative equity RMLs decreased to HKD 156.8 billion from HKD 190.2 billion, while the unsecured portion fell to HKD 10.9 billion from HKD 14.3 billion. Most cases related to bank staff housing loans or RMLs under the mortgage insurance programme, which typically have higher loan-to-value ratios. The figures cover only first-mortgage RMLs that reporting authorized institutions know to be in negative equity and exclude co-financing schemes where negative equity would arise if second mortgages were taken into account; the survey covered about 99% of industry mortgage portfolios and results were extrapolated to estimate the sector-wide position.
Hong Kong Monetary Authority 2025-10-31
Hong Kong Monetary Authority survey shows negative equity mortgage cases fall to 31,449 at end-September 2025
The Hong Kong Monetary Authority reported a decrease in residential mortgage loans (RMLs) in negative equity to 31,449 cases at end-September 2025, down from 37,806 at end-June. The delinquency ratio for these loans remained low at 0.24%. The aggregate value of negative equity RMLs fell to HKD 156.8 billion, with most cases linked to bank staff housing loans or those under the mortgage insurance programme.