The number of residential mortgage loans in negative equity fell to around 99,800, with a value of $155 billion in the third quarter.

The Monetary Authority said the unsecured portion of these loans is estimated at about $33 billion, down from $36 billion at the end of June. 

The overall loan-to-value ratio on these negative equity loans slipped marginally to 127%, reflecting a mild pick-up in property prices.

The three-month delinquency ratio of residential mortgage loans' negative equity improved to 2.16% from 2.28% at the end of June.

The average interest rate charged on negative equity of residential mortgage loans fell further, to 1.09% below the best lending rate at the end of September compared with 1.07% at the end of June. 

The decline in the number and amount of mortgage loans in negative equity for the first time since June 2002 and the improvement in their asset quality indicated that the negative-equity problem appears to have eased, the authority's Deputy Chief Executive William Ryback said.

"It is hoped that this positive development will continue along with the overall improvement of the economy."

For details, visit the authority's website.