The number of residential mortgage loans (RMLs) in negative equity in Hong Kong fell 44 percent from 835 cases in September to 466 cases in December. According to data released by the Hong Kong Monetary Authority, the said decrease in RMLs was largely due to the increase in the city’s property prices.
The total value of RMLs in the negative equity dropped to HK$700 million (S$127.2 million) in December last year, from HK$1.5 billion in September. The unsecured portion of the loans declined to HK$100 million from HK$200 million in the previous quarter.
The three-month delinquency mortgage ratio in the negative equity dropped to 0.57 percent from 0.82 percent in September.
Loans in negative equity mean that the market value of the mortgaged property was exceeded by the outstanding loan amount.
After the real estate market slump a decade ago, cases of negative equity hit a record of 106,000 in June 2003.