Hong Kong residential property prices extended their slide from 2021 highs, with sentiment lukewarm even after the government scrapped extra stamp duties earlier in the year.
Centa-City Leading Index data showed cumulative declines of around 20% from peak, with luxury segments and high-leverage individual investors among the most affected.
Mortgage stress tests were further relaxed, allowing higher loan-to-value ratios for end-users, while developers offered aggressive sweeteners on new launches.
Hong Kong Monetary Authority officials reiterated that the banking system's exposure to mortgages remains conservatively underwritten, with negative-equity cases concentrated in recent vintages.