According to statistics released today by the Monetary Authority of Macao, new approvals of residential mortgage loans (RMLs) rose while those of commercial real estate loans (CRELs) decreased in May 2018. With regard to the outstanding balance, both RMLs and CRELs witnessed monthly increases.
New lending approved
In May 2018, new RMLs approved by Macao banks increased by 23.0% month-to-month to MOP4.9 billion. Of which, new RMLs to residents, accounting for 98.4% of the total, rose by 23.1% to MOP4.8 billion; the non-resident component also increased 15.5% to MOP80.1 million. The monthly average of new RMLs approved between March and May 2018 was MOP5.0 billion, up by 18.0% from the previous period (February to April 2018).
New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 32.4% from the preceding month to MOP882.9 million. The equitable mortgage extended to residents, which accounted for 95.9% of the total, rose by 29.4% from the previous month. On an annual basis, new equitable mortgage approved grew by 99.2%.
New CRELs fell by 64.9% from a higher comparison base in the previous month to MOP2.9 billion. The monthly average of new CRELs approved between March and May 2018 was MOP5.7 billion, down by 18.4% when compared with the previous period (February to April 2018).
Outstanding balances
As at end-May 2018, the outstanding value of RMLs was MOP192.5 billion, up by 0.6% from a month earlier or 4.3% from a year ago. The resident component made up 93.5% of the total. When compared with the previous month, outstanding RMLs to residents rose by 0.6% whereas those to non-residents decreased by 0.4%.
The outstanding value of CRELs was MOP192.4 billion, up 0.8% month-to-month or 13.9% year-on-year. Residents accounted for 89.6% of the loans. Compared with a month earlier, outstanding CRELs to residents rose by 1.0% whereas those to non-residents fell by 0.4%.
Delinquency ratios
At the end of May 2018, the delinquency ratio for RMLs was 0.20%, 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 0.14%, virtually unchanged from a month ago and from end-May 2017.