In a recent report by the Hong Kong Monetary Authority (HKMA), it was revealed that while the number of residential mortgage loans (RML) in negative equity has decreased, the three-month delinquency ratio has seen a slight uptick. The survey conducted by HKMA indicates a reduction in the number of negative equity cases from 40,713 at the end of September 2024 to 39,389 by December of the same year. Despite this decline, concerns remain as the delinquency ratio rose slightly from 0.13% to 0.15%. This trend highlights the ongoing challenges faced by homeowners and financial institutions in the region.

Details of the Survey and Findings

In the heart of Hong Kong's bustling financial district, during the last quarter of 2024, the HKMA conducted an extensive survey on residential mortgage loans (RMLs) in negative equity. The results showed that by the end of December, there were approximately 39,389 cases of RMLs in negative equity, marking a decrease from the 40,713 cases recorded three months earlier. The aggregate value of these loans also saw a reduction, dropping from HK$207.5 billion to HK$195.1 billion over the same period.

The majority of these cases involved bank staff housing loans or mortgages under insurance programs, which typically carry higher loan-to-value ratios. Notably, the unsecured portion of these loans fell from HK$15.8 billion in September to HK$14.5 billion by December. However, despite the overall decline in negative equity cases, the three-month delinquency ratio increased marginally from 0.13% to 0.15%, signaling potential risks within the mortgage sector.

The surveyed institutions, representing about 99% of the industry total, provided comprehensive data that paints a detailed picture of the current state of residential mortgages in Hong Kong. This information is crucial for policymakers and financial institutions to understand the dynamics of the housing market and address emerging issues.

From a journalistic perspective, this report underscores the delicate balance between economic recovery and financial stability. While the decrease in negative equity cases is a positive sign, the rising delinquency ratio suggests that vigilance is still required. It serves as a reminder that even in times of relative stability, underlying vulnerabilities in the housing market must be carefully monitored and managed. For readers, this highlights the importance of staying informed about financial trends and making prudent decisions when it comes to home ownership and mortgage management.