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Hong Kong Reports Decline in Negative Equity Mortgages Amid Housing Market Recovery

Hong Kong Reports Decline in Negative Equity Mortgages Amid Housing Market Recovery

Published:
2025-08-02 04:45:03
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BTCCSquare news:

Hong Kong's residential property market shows tentative signs of stabilization as negative equity mortgages drop to 37,806 cases by June 2025. The HK$190.2 billion in underwater loans marks a 7.6% improvement from March levels, with bank staff housing loans and high LTV mortgage insurance programs driving the reduction.

Delinquency ratios tell a more nuanced story. While unsecured portions shrunk by 12.8% to HK$14.3 billion, late payments crept up to 0.21% - a warning Flare beneath the headline recovery. The HKMA's survey methodology captures only first-lien mortgages, leaving shadow debt uncounted.

|Square

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