Hong Kong ‘Negative Equity’ Mortgages Decline in Second Quarter

"Hong Kong ‘Negative Equity’ Mortgages Decline in Second Quarter | AboutHK.Com - more information about HK"

Bloomberg The number of Hong Kong homeowners with apartments worth less than their mortgages fell to the lowest in three quarters, according to figures from the Hong Kong Monetary Authority. So-called negative-equity mortgages dropped to 3,767, with a total value of HK$8.1 billion ($1.05 billion), for the three months ended June 30, from 9,553 such home loans worth HK$21.4 billion in the preceding quarter, the city’s de facto central bank said on its Web site today. That’s the lowest since September 2008. Home prices in Hong Kong, Asia’s second-most expensive city for luxury residences, are rising as record-low mortgage costs and near-zero interest rates on bank deposits drive investors to buy real estate. Residential values may rise 32 percent by the end of 2010 from June 2009, UBG AG analysts led by Eric Wong said in a July 27 report. The number of negative-equity loans climbed to a record 106,000 in June 2003, according to HKMA statistics. Hong Kong’s home prices had then just ended a six-year slump that wiped out on average about two-thirds of the value of a home. To contact the reporter on this story: Chia-Peck Wong in Hong Kong at cpwong@bloomberg.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it Comments Please login to post comments or replies.