The number of negative equity cases reached a 20-year high in the first quarter, figures released by Hong Kong Monetary Authority (HKMA) showed.

According to the HKMA, there were 32,073 cases at the end of March, up 27 percent from the fourth quarter of 2023 and the most since the first quarter of 2004.

The HKMA noted that the loans had mainly been taken out by bank staff or linked to mortgage insurance, which generally have a higher loan-to-value ratio.

Government figures out last week showed home prices rebounded in March, snapping a 10-month losing streak. That's after Financial Secretary Paul Chan announced the scrapping of all property-cooling measures in his budget speech on February 28.