Meridian: The number of negative assets in the third quarter in Hong Kong hit a new low in 13 quarters, and the amount hit a new low in 16 quarters

According to the latest data released by the Hong Kong Monetary Authority, according to the latest data released by the Hong Kong Monetary Authority, 3,819 negative asset cases were recorded in the third quarter of 2026, involving an amount of HK$17.327 billion. Compared with the 4,356 cases and HK$19.621 billion recorded in the second quarter, the number and amount decreased by 537 cases (12.3%) and HK$2,294 billion (11.7%), respectively. The number of cases hit a new low of 13 quarters, while the amount hit a new low of 16 quarters.

Cao Deming, chief vice president of Meridian Mortgage Referral, said that the property market entered a consolidation period in the third quarter, and property prices once fell. According to data from the Rating and Property Valuation Department, the private residential sales price index for July was 320.1, down about 1% from June, a slight decrease. Furthermore, the number of buyers using higher mortgage ratios has declined significantly in recent years. According to data from Hong Kong Mortgage Corporation Limited, the number and amount of new mortgage insurance loans drawn down in the first nine months of this year was 4433 and HK$23.738 billion, respectively, a decrease of 978 cases (18.1%) and $3.09 billion (11.2%) from 5411 and HK$26.747 billion in the same period last year. The number and amount of cases and amounts hit new lows in the first 9 months of nearly 11 years and 9 years. Since there was only a brief decline in property prices, and most homebuyers have reduced their high-margin mortgages, they are less likely to experience negative assets, and negative asset cases continued to decline in the third quarter.

Cao pointed out that the latest August and September private residential sales price indices have regained their upward trend, and property prices have risen again. Coupled with interest rates remaining at a reasonable level, banks will maintain a positive attitude towards the residential mortgage business. If property prices remain stable in the fourth quarter, there is still room for negative asset cases to fall back.

He added that in negative asset cases, the ratio of mortgage loans outstanding for more than 3 months was 1.34%. Although this ratio has increased, the actual number of cases has declined. It is still low, reflecting the steady repayment ability of Hong Kong owners. On the other hand, given that the overall risk of residential properties is relatively manageable, major banks are more confident in the mortgage business. They will continue to launch different types of mortgage plans and increase related offers during the year to attract high-quality customers and benefit the healthy development of the real estate market.