According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) decreased in July 2018. With regard to the outstanding balance, both RMLs and CRELs witnessed monthly increases.
New lending approved
In July 2018, new RMLs approved by Macao banks decreased by 29.3% month-to-month to MOP5.2 billion. Of which, new RMLs to residents, accounting for 98.4% of the total, increased by 9.5% to MOP5.1 billion. The non-resident component decreased 96.9% from a relatively high base in the previous month to MOP84.5 million. The monthly average of new RMLs approved between May and July 2018 was MOP5.8 billion, up by 7.7% from the previous period (April to June 2018).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 13.3% from the preceding month to MOP629.5 million. The equitable mortgage extended to residents, which accounted for 94.1% of the total, rose by 8.4% from the previous month. On an annual basis, new equitable mortgage approved surged by 278.1% from a relatively low base.
New CRELs dropped by 36.4% month-to-month to MOP4.1 billion. Within this total, new CRELs to residents, which occupied 99.1% of the total, decreased by 35.8% to MOP4.1 billion while those to non-residents fell by 65.4% to MOP38.7 million. The monthly average of new CRELs approved between May and July 2018 was MOP4.5 billion, down by 24.1% when compared with the previous period (April to June 2018).
Outstanding balances
As at end-July 2018, the outstanding value of RMLs was MOP199.6 billion, up by 1.1% from a month earlier or 6.2% from a year ago. The resident component made up 92.4% of the total. When compared with the previous month, outstanding RMLs to residents rose by 1.2% whereas those to non-residents decreased by 0.3%.
The outstanding value of CRELs was MOP197.5 billion, up 1.3% month-to-month or 14.7% year-on-year. Residents accounted for 90.0% of the loans. Compared with a month earlier, outstanding CRELs to residents rose by 1.9% while those to non-residents fell by 3.6%.
Delinquency ratios
At the end of July 2018, the delinquency ratio for RMLs was 0.18%, down by 0.01 percentage point from the preceding month but up 0.01 percentage point over a year earlier. The ratio for CRELs was 0.13%, virtually unchanged from a month ago and from end-July 2017.