Negative Equity Mortgage Loans
The Hong Kong Monetary Authority reported a 17% decline in the number of residential mortgage loans in negative equity during the third quarter of 2025. This reduction indicates a positive shift in the mortgage market, reflecting improved conditions for homeowners. Negative equity occurs when the outstanding mortgage balance exceeds the property’s market value, posing risks for borrowers. The decrease in such loans suggests that more homeowners may be experiencing financial stability, potentially leading to a healthier real estate market in Hong Kong.
