The Hong Kong Monetary Authority announced today the results of its latest survey on residential mortgage loans (RMLs) in negative equity1.
The estimated number of RMLs in negative equity decreased to 78 cases2 at end-March 2012 from 1,465 cases at end-December 2011.
The aggregate value of RMLs in negative equity fell to HK$236 million at end-March 2012 compared with HK$3,647 million at end-December 2011.
The unsecured portion of these loans decreased to HK$4 million at end-March 2012 from HK$122 million at end-December 2011.
Since the first quarter of 2011, there have been no RMLs in negative equity with delinquencies of more than three months.
Hong Kong Monetary Authority
27 April 2012
1The mortgage portfolio of the surveyed authorized institutions represents about 99% of the industry total. The survey results have been extrapolated to approximate the position of the banking sector as a whole.
2The figures derived from the survey relate only to RMLs provided by authorized institutions on the basis of first mortgages and which the reporting institution knows to be in negative equity (i.e. the outstanding loan amount with the reporting institution exceeds the current market value of the mortgaged property). Not included in these figures are some RMLs associated with co-financing schemes which would be in negative equity if the second mortgages were taken into account. The extent to which such RMLs are in negative equity is not known because authorized institutions do not maintain records on the outstanding balances of the second mortgages.