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