The Hong Kong Monetary Authority published its end-March 2025 survey of residential mortgage loans (RMLs) in negative equity, showing an increase in both the number of cases and the aggregate loan value compared with end-December 2024. The three-month delinquency ratio on these loans remained low at 0.17%. The estimated number of negative equity RMLs rose to 40,741 cases from 38,389, while the aggregate value increased to HKD 205.9 billion from HKD 195.1 billion. The unsecured portion grew to HKD 16.4 billion from HKD 14.5 billion, and the delinquency ratio increased slightly from 0.15% to 0.17%. Most cases related to bank staff housing loans or RMLs under the mortgage insurance programme, which generally have higher loan-to-value ratios; the survey covers first mortgages known by the reporting institution to be in negative equity and excludes co-financing schemes where negative equity would arise only when second mortgages are taken into account. The surveyed mortgage portfolios represent about 99% of the industry total, with results extrapolated to estimate the banking sector position.
Hong Kong Monetary Authority 2025-04-30
Hong Kong Monetary Authority reports end-March 2025 negative equity mortgages up to 40,741 cases totalling HKD 205.9 billion
The Hong Kong Monetary Authority's end-March 2025 survey reports an increase in residential mortgage loans (RMLs) in negative equity, rising to 40,741 cases with an aggregate value of HKD 205.9 billion. The unsecured portion grew to HKD 16.4 billion, and the delinquency ratio slightly increased to 0.17%. Most cases involve bank staff housing loans or RMLs under the mortgage insurance programme, covering first mortgages in negative equity.