We study a class of degenerate hyperbolic equations in a bounded domain whose degeneracy occurs at a boundary point. We first develop the weighted functional framework, prove well-posedness of the degenerate problem, and establish regularity away from the degenerate point. We then introduce a shape-design approximation obtained by removing a small neighborhood of the degenerate boundary point, which yields uniformly non-degenerate hyperbolic problems on regularized domains. We prove that the regularized solutions converge to the solution of the original degenerate equation, including the convergence of the boundary normal derivatives away from the degenerate point. Finally, under a geometric condition on the observation boundary, we derive an observability inequality for the degenerate equation by combining the uniform observability of the regularized problems with the limit passage.

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