Home loans in negative equity dropped to $25.03b in Dec 2024

The number of cases fell, but the three-month delinquency ratio rose.

An estimated 39,389 cases of residential mortgage loans (RML) in negative equity were recorded as of end-December 2024, according to a survey by the Hong Kong Monetary Authority (HKMA).

This is lower than the 40,713 cases recorded as of end-September 2024.

The aggregate value of RMLs in negative equity is HK$195.1b (approx. $25.03b) as at end-December 2024, lower than the HK$207.5b (approx. $26.62b) at end-September 2024.

The 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 said. The mortgage portfolios of the surveyed authorized institutions represent about 99% of the industry total.

The unsecured portion of these loans decreased to HK$14.5b (approx. $1.86b) in December from HK$15.8b (about $2.03b) in September.

The three-month delinquency ratio of RMLs in negative equity rose slightly to 0.15% in end-2024, versus 0.13% in end-September. 

(US$1 = HK$7.79; as of 30 January 2025)