HK mortgage loans in negative equity fall 11 pct in Q4 2011

HONG KONG Jan 27 (Reuters) - Hong Kong reported 1,465 cases of residential mortgage loans in negative equity as of the end of 2011, down 11.4 percent from 1,653 cases at the end of September.

Data from the Hong Kong Monetary Authority (HKMA) showed the aggregate value of loans in negative equity decreased to HK$3.65 billion ($470.13 million) as of the end of December, from HK$4.15 billion in September.

The unsecured portion of these loans fell to about HK$122 million from HK$165 million three months earlier.

The loan-to-value ratio of residential loans in negative equity fell to 103 percent in the fourth quarter of 2011, from 104 percent in the third quarter.

Since the first quarter of 2011, there have been no residential mortgage loans in negative equity with delinquencies of more than three months, the HKMA said in a statement.

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

The number of property deals in Hong Kong fell 33.1 percent in 2011 compared with the previous year as the government took steps to cool speculation and curb Hong Kong home prices.

($1 = 7.7574 Hong Kong dollars) (Reporting by Christina Lo; Editing by Chris Lewis)