Ups and downs in hong kong

The estimated volume of residential mortgage loans (RML) in negative equity in Hong Kong escalated by a staggering 326 per cent in Q4 2008 to 10,949 cases as property prices fell, data from the Hong Kong Monetary Authority showed...

The collective value of RMLs in negative equity rose to £2.24 billion at the end of December, up from £544 million at the end of the Q3 2008, underlying the deep recession that the country now finds itself in.

The loan-to-value ratio of the RMLs in negative equity rose to 112 per cent from 107 per cent in late September.

Loans in negative equity mean the outstanding loan amount exceeds the current market value of the mortgaged property.

Negative equity cases hit a record 106,000 cases in June 2003, following the last Hong Kong property crash a decade ago. 

Property prices in Hong Kong are widely projected to record further declines in 2009 as the global economic downturn intensifies.

Source: www.homesoverseas.co.uk/news