Hong Kong Negative Equity Cases Drop 12% to 3,819 in Q3, Delinquency Rate Rises
HK01 · 5 SOURCES1 day ago2 MIN
Summary
The Hong Kong Monetary Authority (HKMA) released data on October 30, 2026, showing that negative equity residential mortgage loans in Hong Kong declined significantly in the third quarter. The number of cases dropped to 3,819, marking a 12.3 percent decrease from 4,356 cases in the second quarter, while the total amount involved fell to HK$17.33 billion from HK$19.62 billion. Despite the improvement in overall numbers, the delinquency rate for mortgages overdue by more than three months rose to 1.34 percent, up 0.09 percentage points from the previous quarter.
Key Points
- Negative equity mortgage cases totaled 3,819 in Q3 2026, down 537 cases from 4,356 in Q2, representing a 12.3 percent quarterly decline
- Total loan amount involved decreased to HK$17.327 billion from HK$19.621 billion, while unsecured portion fell to HK$800 million from HK$900 million
- Cases primarily involved bank staff housing loans or mortgage insurance plan loans with generally higher loan-to-value ratios
- Delinquency rate for negative equity mortgages overdue 3+ months rose to 1.34 percent from 1.25 percent in Q2
- New mortgage insurance loans in first nine months fell to 4,433 cases worth HK$23.738 billion, down 18.1 percent and 11.2 percent year-on-year respectively
Why It Matters
The continued decline in negative equity cases despite rising delinquency rates suggests that while overall property market stress is easing, a subset of borrowers remain vulnerable. Industry experts expect further improvement if property prices stabilize in Q4 2026, which would support the healthy development of Hong Kong's mortgage market .
The continued decline in negative equity cases despite rising delinquency rates suggests that while overall property market stress is easing, a subset of borrowers remain vulnerable. Industry experts expect further improvement if property prices stabilize in Q4 2026, which would support the healthy development of Hong Kong's mortgage market .