Number of Hong Kong mortgage holders with negative equity soars to 20-year high, most since Sars epidemic
- The number of Hongkongers with negative-equity loans stood at 32,073 in the first quarter, the most since some 40,000 cases were recorded in the first quarter of 2004
- Aggregate value of ‘upside down’ loans rises to HK$165.3 billion (US$21.1 billion), compared with HK$131.3 billion at the end of December.
Hong Kong’s declining home prices dragged more mortgage borrowers into negative equity, putting them under greater financial strain as property prices show little prospect of rising amid a lethargic housing market and high interest rates.
The aggregate value of negative-equity loans rose to HK$165.3 billion (US$21.1 billion), compared with HK$131.3 billion at the end of December.
“As property prices have fallen by more than 20 per cent from their peak, most homeowners who entered the market with a high loan-to-value ratio from 2019 to 2022 have a greater chance of falling into negative equity, resulting in an increase in the number of negative-equity cases,” said Eric Tso Tak-ming, chief vice-president of mReferral.
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