Negative equity means homeowners are paying the mortgage on a (say) 6 million dollar flat whilst the market value has dropped to 5 million dollars. Homes are not the most liquid of investments to begin with. What do you think happens when demand falls off a cliff? Look, bottom line is that Hong Kong is a massive property bubble thanks to Li Ka Shing, the Kwok brothers, Gordon Woo, Henry Cheng and all those tycoons who control the puppet strings of our government heads. Negative equity is evidence that fundamental changes has already taken place. The owners need to cut ties from their loosing investments slowly so as not to unhinge the stupid banks that loaned indiscriminately. But Hong Kong has so few natural born citizens who can barely afford to buy a two million dollar apartment, so once the fears form the Covid-19 abate, the puppet masters will have to open the flood gates to folks from the North with suitcases of cash once again. The 2 million local born youngsters who want to buy a home can only afford two million dollars so they are all in line for government housing.