HK mortgage loans in negative equity surpasses 32,000 in March

The delinquency ratio also jumped to 0.06% from 0.03% previously.

The number of residential units in Hong Kong that are now worth less than their mortgage loans have increased to over 32,000 in March, according to data from the Hong Kong Monetary Authority (HKMA).

The estimated number of residential mortgage loans (RMLs) in negative equity increased to 32,073 cases at end-March 2024, from 25,163 cases at end-December 2023.  

These cases were mainly related to bank staff housing loans or RMLs under mortgage insurance programmes, which generally have a higher loan-to-value ratio, the HKMA noted in a press release posted on its website.

In terms of aggregate value of RMLs, negative equity increased to HK$165.3b at end-March, from HK$131.3b at end-December 2023.

ALSO READ: Hong Kong banks’ loans and deposits ‘virtually unchanged’ in March 

The unsecured portion of these loans increased to HK$11.2b in March from HK$7.3b at end-December 2023.

The three-month delinquency ratio of RMLs in negative equity also rose to 0.06% at end-March from just 0.03% at end-December 2023.

The mortgage portfolios surveyed represent about 99% of the industry total, HKMA said.